Has the time come to finally bid adieu to that beloved vehicle that has served you so well all these years? If so, it’s a good idea to weigh all your options before you visit a dealership. Sales people are under pressure to move as much inventory as they can, as fast as they can and it’s up to you to ensure they give you the best deal possible.
Among the questions you should ask yourself before heading to the dealership:
* Should I buy a new car or a used car?
* Should I sell my car on my own or trade it in?
* What are the pros and cons of buying a car versus leasing one?
Determining your budget ahead of time will help you answer these questions. Be sure to price out auto insurance for your new car so you can afford to actually drive the vehicle you choose off the lot. Many insurance companies offer tools on their websites that allow you to get a quote instantly.
You may also want to calculate the difference between purchasing the car outright, or paying monthly payments. Leasing a car may be a feasible option for you, especially if you like picking out new cars every three years and don’t drive a lot of miles. Lease payments will be set by the dealer. Or you may need to take out a loan to purchase the vehicle outright. Before you go shopping, review your loan choices (the bank, a private lender or the auto dealer) to determine how much your monthly payments would be based on vehicles purchased at different prices.
One additional budget item you may want to consider is what to do with your “old” car. Are you able to sell it? If so, what is the expected income you will receive? And will you be able to use that income toward the purchase of the “new” car? You have a few options for selling your car. You could trade it in with the dealer, and the trade in value will be applied toward the new car purchase price. Or you could sell it yourself. The cons to selling it yourself are that you have to advertise, and then wait for a buyer to agree to purchase the car. This can take time and money. But when you trade-in, you might not be able to get more for the car than the blue book value.
A good place to begin your search about cars available is online, where no eager sales person will distract you. Two sites you may want to check out are Edmunds.com and ConsumerReports.org. Both sites offer great car buying advice, covering everything from the latest makes and models to the available options and gas mileage. They also offer information about lease options and tools that allow you to compare prices.
Having all this information ahead of time makes it possible for you to enter negotiations with the dealership – or a private seller – with the upper hand. Going into the deal, you’ll know exactly how much you should pay for the vehicle of your dreams, and can hold your ground so you won’t pay a penny more.
Soon you’ll have a new set of car keys in your hand, and will be behind the wheel of a new vehicle. Congratulations!
