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The Common-Sense Dos and Don'ts of Buying a Car

The Common-Sense Dos and Don'ts of Buying a Car

If you're planning on buying a new or used car now is the time to do it. Most current year models will be marked down and priced to sell to get ready for the 2017 models. However, before you go car buying take some of these tips to heart.

Do your research ahead of time!

To get the best possible price, you need to learn as much information about the vehicle you are shopping for before you ever enter the dealership. Consider several vehicles and research the accessories, features, and trim levels available on each one ahead of time, so you know what trim levels interest you, and which ones you would not want to pay extra for. Keep in mind that most vehicles are packaged according to specific trim levels, and can’t always be purchased to specific requirements without a special order.

Do know how much you can afford.

Don’t shop for a luxury car if you’re living on a small-car budget. The rule of thumb when buying a new car is to put about 20 percent down, try not to borrow for more than four years (48 months), and keep your monthly payment lower than 10 percent of your income. Trust me the faster you can get it paid off the better.

Don't forget to factor in fuel costs and yearly maintenance.
The Common-Sense Dos and Don'ts of Buying a Car

Most modern automobiles have a EPA fuel economy estimates sticker in the window at the car lot that show the average miles per gallon, annual cost of gasoline, and maintenance costs. This is very important to go by to decide what kind of automobile to buy

Don’t base your purchase on monthly payments

Instead consider the total purchase price after sales tax, and then evaluate the monthly cost. Once you know your total price, financing the car should cost about $20 a month for 60 months for every $1000 financed (for buyers with good credit), so keep that in mind when you’re looking at the bottom line.

Do contact your insurance agent ahead of time to check the best rates

It might seem backwards to check with your insurance agent before you actually purchase a new car, but if you knew the premiums were going to be sky-high for a certain vehicle, would you be inclined to choose a different vehicle or trim level? Certain cars like Ford Mustangs and Chevrolet Corvettes usually have higher insurance premiums that smaller four or six cylinder vehicles because they are sports cars and most common for accidents.

Do check your credit score before going to the lot

It does make a difference. It can affect your acceptance for financing, what kinds of cars are available to you, and payment terms. The higher your credit, the lower your payment terms will usually be.

The Common-Sense Dos and Don'ts of Buying a Car

Do arrive dressed neatly, but leave the expensive clothes and accessories at home

You want your salesperson to know you are a serious buyer. So dress neatly to try to strike a better deal.

Don’t let your excitement over a specific vehicle make you a victim

Be prepared to walk away. There is no such thing as “now or never,” and it’s likely you can find a similar car on another dealer’s lot. If you don’t think you’re being treated well, leave and find another dealer. Be reasonable: the dealership needs to cover its costs and pay the salesperson’s commission, but if they’re not being fair to you, you will most certainly find another car on another lot on another day.

Finally: Don’t trade in a car that is worth less than you owe on it. When that happens, the balance of your old loan will be rolled into the new car’s loan amount, combining the debt of two cars into one, larger, loan. This will take way longer to pay off

So when you go car shopping, remember these steps and have fun. But, watch out for those tricky slick salespeople. You don't wanna buy a car from Wormwood Motors like the people in the movie Matilda did. Some used car lots do actually use those tricks to pass off a car. So when you do go to a car lot have fun and don't be afraid to ask questions, but remain always aloof.

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The Common-Sense Dos and Don'ts of Buying a Car
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