Purchasing a new car isn’t quite as involved as purchasing a new house, however, the decision you make will still affect you several years down the road. This can seem like a Herculean task with the number of distractions in the car buying process. Here are a few tips to narrow down your options to a few good models.
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Do Your Research
Maybe you’ve always been loyal to one brand or another. Or, perhaps you saw an ad for a model and you’re simply in love with it. Before you sprint to the dealership to sign and drive, you’ll want to do your research. Spending some time researching which features you want can help broaden your horizons and point you toward the best vehicle for you.
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Compile a List of Wants and Needs
Another great step in narrowing down your car buying search is too create a list of wants and needs. Any car that doesn’t meet all the needs should be left off the table. Wants should be added bonuses provided they are within your budget, but don’t leave cars off the table that don’t add every single want.
Once you have a realistic set of wants and needs, you’ll be able to create a list of possible makes and model years which fit the bill. With this helpful tip completed, it’s time to start narrowing down your options even further.
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Determine How Much You Can Afford
There are lots of opinions on the best way to purchase a vehicle. Leasing, buying new, and buying pre-owned make up the majority of the options available to you. In the best case, purchasing the car in cash and not taking on debt is the best possible scenario, however, if you do need to take out a loan or decide to lease a vehicle, it’s crucial that you accurately know how much you can afford every month. Create a detailed budget that includes all monthly expenses and income to get a clearer picture.
When working on acquiring an auto loan with a bank, they will see your income and run your credit. They will give you a maximum purchase amount your loan is approved for. However, the ceiling they give you will not take into account many of your expenses, so you’ll need to determine how much you can actually afford.
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Test Drive, Test Drive, Test Drive
Assuming you have completed the steps above, you should have a handful of models you’re interested in based on the list of desired features you created. You should also have a purchasing limit dictated by your personal budget, and not the bank’s approved loan amount. Now it’s time to contact dealerships that have the models you want in the price range you’re comfortable with and schedule test drives.
Once you test drive a few models, you should have a very narrow list of cars you’re interested in and make an informed buying decision. With these tips, you can make selecting the right car an easy process that will pay dividends in happiness for years to come.
Image via Flickr by yonkershonda | CC BY-SA 2.0.
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