Buying a car is often someone’s first big purchase. It’s a weighty decision and one you don’t want to make lightly, especially if you’re thinking about buying a new car, instead of looking at used cars. You’ll want to know how to find the right car dealer and may be searching for the best tips for buying a new car. You want to make the right investment for your habits and area, so knowing what you want before you even get into the showroom is important. Being open to hearing what the salesperson has to say is often useful — they may alert you to deals or offers you hadn’t heard of — but make sure you don’t get talked into something you don’t want or need. Doing your research beforehand and knowing what you want and why you want it will never steer you wrong. Think about price, size, and use before purchasing, look up reviews and safety ratings, and always take the vehicle for a test drive before purchasing!
The Car Industry
Americans do love their cars. In fact, our automobile industry is one of the biggest industries in our country, employing almost two million people. These employees design, engineer, construct, and supply parts and components for sale, assembly, and to service new cars. And that doesn’t even count those who are in the car dealerships, both new and used. Almost 8 million cars were sold to the United States in 2014 and about half of those were made in the United States that year. In 2016, new vehicle sales went up for the sixth year in a row — something that’s unprecedented! Almost 18 million vehicles were sold this year, making it a record.
Many people are also choosing to lease their vehicle — that reached an all-time high in 2015, with just under 4 million vehicles leased. If you’re short on cash or can’t get the necessary credit to apply for a car loan, leasing your vehicle to start isn’t a bad idea.
Want Tips for Buying a New Car?
Here are some tips for buying a new car you’ll want to keep in mind. First off, figure out your budget. Generally speaking, a good rule of thumb is that your monthly car payment shouldn’t total over 20% of your take-home pay. You don’t want to make your life miserable if you don’t have to — saving up what you can and putting a good hefty down payment on your car at the lot can make a big difference.
You’ll also want to pay a visit to your bank to see if you’ll qualify for a car loan. Making sure you have the capital to even buy a new car is a crucial first step. Even though many offers will let you have one to two interest free years, it doesn’t mean that you shouldn’t be paying down your car bill — take advantage of those interest free years and get the principle down as much as you can!
Do your research and know what make or model you want to buy before getting to the lot. Shockingly, over 50% of people don’t know this information before they get to the dealership. Do spend between 1-3 months shopping around before you jump — unless there’s an incredible deal or offer on the the table that you can’t refuse. Just under half of buyers spend about this much time deliberating before making the big move.
Don’t be afraid to bargain. Haggling may seem old-fashioned, but you can often get a better deal than what’s advertised. If you’ve done your research and know that other places offer the car you want for less, you can use that information to your advantage. Don’t be afraid to speak up for yourself.
And be sure to take your car on a test drive!
If you’re looking for tips for buying a new car, figuring out a budget and doing your research are two of the most important. You want all your ducks in a row before making your move. Hopefully at the end of it all, you’ll be able to sit back and enjoy your smooth new ride.
