The Best Financial Advice For Buying A New Car

Choosing the right car requires some sound financial advice. With so many options that claim to help you save money when buying a car, you can really fall down a financial hole when investing in a new or used car. You should know just what you want in a car, and stick to your goals – but also be very practical when making this purchase. Below are some sound tips to help you get the best deal on the car of your dreams.

 

Research Everything You Can

One of the best sources for car information out there is www.cars.com. They provide a plethora of technical information about almost every car for sale to date. Cars.com also collects information from their clients on reliability issues. They even have a buying and trade-in service to help you get a great price. With their new American Made Index you can even check out the top cars made in America, if that’s one of your criteria in buying a new car.

 

Make a List of Car Criteria

That’s why you should make a list of your criteria. What are you looking for in your new investment? From extra leg room to tech savvy back up cameras, you can compare each amenity you are looking for once you jot them all down. Be sure to decide which criteria is the most important to help you guide your search on cars.com.

 

Know Exactly What You Can Afford

Your car is an investment, and the best car investments are made with cash on a new vehicle – especially if you keep it for 10 years or more. You won’t pay any interest and will get the best deal. The best part: you can sell it at any time. Because a car depreciates most in the first two years, you’ll get more out of your car when it’s time to sell it. How much you can afford is flat out on the table when you pay cash, as well. If you are going to take out a loan or lease a car, you need to consider how much you can afford in monthly payments. Take the interest rate into consideration, as this can sometimes make the car unreasonable in the long run. Used cars can be more economical for loan options. Always ask for a Carfax report on any used car you want to buy; these are free right from the dealer.

 

Loan vs. Lease Options

Taking a loan out on a car means you will own the car when you make your final payment on the term of the loan. When you lease a car you are renting it, and will not own it at the end of the lease unless you opt to buy it at the preset price you agreed on in your initial contract.

Depending on on how long you plan to keep the car, you may benefit from one or the other option more. A lease is great if you like to trade in every few years. While a loan is better for those that want to own the car in the end.

 

Be Sure To Get The Best Deal

Car dealers are prepared to give you a deal based on the way you intend on paying for the car, as well as whether or not you have a trade-in. When you go into a dealership as for the cash price without a trade. If you decide to trade-in or get a loan, just tell them you changed your mind. That way you get the base price for the car that you can use when comparing cars on cars.com. Be sure to shop around and arrange financing before you start negotiating for your new or used car.

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