Buying a new car is one of the most important financial decisions you will make in life. The money that you invest in a vehicle is often a huge chunk of your budget. For most people, second only to buying a new home, you may be paying a car note for many years before your car is paid off in full. Therefore, you want to make sure that you are not only buying your dream car but also making an informed decision that will not wreak havoc on your personal finances.
That being said, here are 5 great tips that can help you in making the best car buying decision possible.
1. Total Price of the Car
The price of the car that you buy is one of the first factors that must be considered when you are making this type of investment. You want to buy a car that you can afford without having to live in a financial strain while you are paying it off. Therefore, even if your dream car is a Ferrari that is presently on the showroom floor, it is important that you know your financial limits so that you can begin your research looking for prices that you can actually afford.
2. Cost of Your Car Insurance Coverage — Sports Car vs Average Family Sedan
Another key factor that must be taken into account when buying a new or used car today is the price of car insurance. To calculate the amount that you will be required to pay, there is a specific criterion that is used to come up with the total cost that you will pay annually. So, the cost can vary greatly based on the type of car that you buy, your age, your driving record, where you live and other things that will give the annual rate.
In fact, the cleaner the driving record the better since the rates are lower for those that have a good driving record. For instance, you need to know the exact amount that you will pay for, for instance, youi comprehensive insurance, before you buy that expensive sports car. Whatever the situation, you need to know if you can choose between the insurance policy for an expensive sports car or an average size family vehicle with little to no extra bells and whistles.
3. Choose the Make and Model
Choose the make and model of the vehicle you want and prefer. For some car buyers, there is a lot that goes into making this decision and it is based on a variety of different personal preferences and needs. For instance, here is a list of things that many people look for when they are buying a new car from any manufacturer.
Each of these considerations must be reviewed as you make the best car buying decision that will best suit your personal needs and preferences. In some cases, a car buyer may be looking at a specific make or model that they have liked for a long time before they make their choices. On the other hand, some people may spend time shopping around to find virtually any vehicle that will fit the above criteria before they make a buying decision. Hence, buyers will be searching for the most important qualifications that will suit their wants and needs for the vehicle that they purchase.
4. Choose Between New versus Used Vehicles
When some people decide to buy a new vehicle for their family, they may want to save huge sums of money for the best that they can afford. In some cases, this may even mean buying a used vehicle that has a few miles on the speedometer. For instance, if you want to buy a very expensive car but cannot afford the high price tag that is on the newer showroom versions, you may choose to find an earlier model that has already been driven a year or two.
In this scenario, you can save thousands of dollars, while also buying a luxury car that you like a whole lot more. In short, the new versus used issues will depend on the amount that you can afford and your objective for buying a higher-end vehicle.
5.Stick Shift or Automatic
If you can drive cars with automatic transmission and stick shifts (manual transmission), you can expand the inventory of cars that you can seriously consider driving off the lot. This is because most dealerships have both types of vehicles that you can make your selections from.
In fact, if you want to save money on your purchase, you may think about buying a manual transmission vehicle because the price is often less than the automatic in the same make and model. The choice that you make between the two is left up to you and your personal preferences.