A lot of people buy their first car with little to no research. They get excited by the pretty colors and test driving vehicles that they don’t think about the finance behind a car. Their budget is suddenly shot because they didn’t account for the ongoing (and hidden) costs of having a car long term.
There are so many things that people would do differently before they buy a new car. It’s great to use finance companies like New Roads Auto Loans should you want to, but there are so many ways to make sure that you are financially ready for a new car in your life. Luckily for you, we’ve got some of the most important things that you need to do before you purchase your next car. Let’s take a look:
- Before you buy a car, save up some money. The down payment that you save could make a much bigger dent in your finance package than if you only pay out the bare minimum. In an ideal world you could pay for your car in cash, but that’s not always feasible for people – especially students. So, the best thing that you can do is save a big enough down payment that your monthly finance is much less.
- When you choose your car, don’t pick it based on the payments that you’ll make every month. You should consider your original budget, and monthly payments will cost you more overall as time goes on. The car salespeople can lower the monthly repayment to fit your budget and extend the term of the loan, so think about the whole cost of the car that you want to buy and choose your car based on that.
- Go and look at more than one location for a car. You do not have to buy from the first dealership you head to and you certainly don’t have to be pushed into a sale. You should never be afraid to shop around and explain when you’ve seen a cheaper deal. You never know, you could end up bartering a better price.
- Where you can, keep an eye out for shady practice. You can use these tips to see whether your salesperson is trying to sell to you based on dodgy practice. Don’t allow yourself to be pushed into a sale by someone who has coerced you there.
- When you get your car, don’t wait for the monthly payment to pay off your car loan. You can pay it off as much as you can so that you can get rid of your debt. Getting rid of the loan quickly will mean that you free up your money each month for other things that you want to spend on. Your car payments shouldn’t be comfortable: you should be doing what you can to minimize them.
- Keep a lookout for extra features, but be lenient with which you automatically get with the car. Sometimes, you’ll have to put the work in yourself. If there’s something very niche that you know you want, such as a B-series throttle body, you may have to purchase and fit this yourself or have it fitted professionally once you have the vehicle of your choice.
Your new car is an adventure in waiting. The faster you buy a new car, the more chance of movement you have. Take our tips above and you’ll find your car purchase easier.