3 Tips On How To Be A Successful Car Buyer
September 28, 2021
Buying a car can be overwhelming, especially when you are a first time car owner. If you don’t plan well and take it seriously, you could wind up making a big mistake that could cost a lot of money. There’s a lot to consider when it comes to buying a car, but it doesn’t have to be terrifying. We have three tips to that will help anyone be a successful car owner.
1. Put research and thought into your purchase.
Your car ownership journey starts here. The last thing you want to do is make a quick decision without searching out your options. You may love the newest sports car that just hit the market, but it may not be the most responsible decision financially. Maybe you want a hybrid or electric vehicle, but have you done your research as to all that may entail – like higher repair costs?
When it comes to purchasing a car, you’re putting a lot of money on the table – or taking out a big loan. You don’t want to throw that money away with a bad purchase. Here’s 3 questions to ask when you’re about to purchase a car:
- What car is budget friendly? This seems like a big “duh” – but you need to understand what you can afford. Maybe a 2019 BMW isn’t in your budget. Do your research and find a vehicle that is in your price range of what you’re willing to pay. Check to see if you could afford the monthly payments on it (if you’re financing). The last thing you want is to take out a loan for something that you can’t actually afford in the long run.
- Keep in mind that different vehicles will cost more to repair, which means long-term, the repairs may outweigh the cost of the car. Do your research to see what vehicles are more reliable and cost less to repair when things start to wear and tear.
- What car fits my lifestyle? If you’re looking to be more environmentally friendly, maybe a hybrid would suit you. If you’re a large family and need room for the kids, a large SUV or mini van might make sense. Are you looking to haul work supplies, you may be looking for a truck. No matter the lifestyle, there’s definitely something out there for you. If you’re a cycler or skier, something like a hatchback might be best for you. Whatever you’re looking for, you want to make sure it suits your adventures.
- What car will be reliable? For most people, a car purchase is not something they want to do often if they can avoid it. The sad fact is, you never really know if your car will be 100% reliable when you first buy it. There could be unseen things that happen. However, doing your research on reliable vehicles can save you a lot of issues in the long run. For instance, cars like Hondas and Toyotas are known for their longevity. If that’s something that’s important to you, you may want to consider certain make and models.
2. Know how to get the best financing.
Most people take the route of financing when making a big purchase of a car. This is a very important step when deciding to buy a car – and you want the best deal possible. The best rates are usually found through a credit union or dealer financing. Of course, all of this depends on your credit score. Depending on what your credit score qualifies you for, will determine where you can get the best deal.
Interest rates: When financing, you want to find the best interest rates that you can. This will depend heavily on timing, your credit score and the length of your finance.
- Rates go up and down. Don’t hold off on buying a car waiting for the rates to go down, because you never know when they could go up again!
- Usually you can run your credit score for free through different websites like CreditWise and FICO. It’s good to know your score before you buy. However, do not let a lender run your score unless you are serious about purchasing the vehicle. Having your credit score ran does effect it, and it’s a good idea to only have it ran when you are serious about purchasing the vehicle.
- The length of a car loan is usually written in months. The shorter the car loan, the faster you pay it off. however, it is going to be a higher price than a longer loan. You can receive lower interest rates with shorter a shorter loan. The average loan is about 60 months. And a long loan is over 60 months. With this type of loan, you’ll likely pay more than what the car is worth because you will be paying a high interest rate. Although, many people still prefer this option because of the low monthly payment.
3. Get the best car insurance policy.
This is another big factor to understand when buying a car. You will need car insurance, so it’s important to get the best premium.
- Liability: protects you when you damage someone else’s property or injure another person. 100/300/100 is the preferred limits and insurance carriers often reward drivers with lower rates for keeping the preferred limits. Each state has it’s own minimum requirements
- Comprehensive: Comprehensive coverage provides protection against fire, theft, vandalism, animals, and storm damage. Anything other than a collision. This is usually a requirement when taking out a loan on a vehicle.
- Collision: Collision coverage will help repair your vehicle when you are in a car accident with another car or inanimate object.
See what discounts you can receive. You can get discounts for being a good drive, low mileage driver, good student, military and so much more. Make sure you get different quotes to make sure you’re getting the best price for your coverage.
There’s many tips to consider when buying a car successfully. It can be overwhelming – but it doesn’t have to be. Make sure you’re prepared. These are three tips that will never steer you wrong and will ensure you have a successful car buying and ownership journey.
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