Your Complete Guide to Buying a Car
So, you’ve saved up a nice little chunk of change and you can’t stand driving your old car anymore—but how do you go about buying a new one? If you want to make sure you get the best deal on a reliable car, you need to do your due diligence.
Before buying a car, you should do plenty of research and carefully determine your budget. When shopping, be sure to find out everything you can about your potential car. Here are some other tips for making sure you get the best car next time you shop.
Car Needs and Budget
The first step to shopping for a car is determining what you actually need and how much you can spend. If you’re looking for a vehicle that has some hauling capability and is good for manual labor, you’re probably in the market for a truck or a van. If gas mileage is your primary concern, a simple sedan is going to be your best bet.
You’ll also need to think about what you want in your vehicle. There are tons of different makes and models of vehicles, each offering different things when it comes to looks, features and strengths and weaknesses. Chances are you’re going to be driving this car for quite a while, so it’s important to find something you actually enjoy driving.
Your budget is the biggest factor in shopping for a car. No matter what kind of car you want, you can only spend as much as you have or have access to. Before you go looking at lots and talking with salespeople, make sure you get an idea of what you can spend, whether it’s in the form of a lump sum of cash or a preapproval for a loan. Check out my guide to buying a used car if you’re sure a used car is for you. If you are not sure, it is always good to leave your options open.
Car Loan Tips
Unless you’re only spending a few thousand on a car and you have the money in cash, you’re going to need to take out a loan to pay for your car. This means providing information for a bank or dealership to run a credit check and putting money down. The good news is, these loans allow you to increase your car budget without paying a fortune in interest since the rates are relatively low.
If you happen to live in Canada, then when looking for Ontario auto loans, it’s important to make sure the loan you apply for has a fair interest rate and monthly payments. You will spend the next few years paying this loan off, so the last thing you want is a payment schedule or amount that you can’t work with!
While dealerships do offer loans, it’s best to apply for an auto loan with a bank with whom you already have plenty of history. This is doubly true if you bank with a local credit union since they often have the best interest rates.
Due Diligence When Car Shopping
Whether you’re testing out a new car at the lot or meeting up with a private seller to learn more about the vehicle you’re interested in, it’s important to ask plenty of questions and take your time to determine what, if anything, is wrong with the car you’re considering buying. Many private sellers sell cars that need something minor replaced, such as tires or one of the gauges. Make sure you ask about any problems like this when you’re looking at a car.
Test driving is also a good way to determine the worth of a car. Even cars that look very nice may have problems exposed by a simple test drive. The key to a successful test drive is making sure you take the car through a range of different conditions. You should drive the car both fast and slow, up and down hills, and make sure you turn left and right. Also take this time to check any other functions of the car, including lights and turn signals, windshield wipers and washer fluid, and heating and air conditioning.
If something is broken in the car you’re looking at, it’s best to be aware of that fact before you decide to make the purchase. This is why it’s important to do plenty of your own research without jumping the gun.
Final Thoughts for Buying a Car
No matter what you do, buying a car is a bit of gamble. However, taking the right steps before buying is the best way to make sure you get a good deal on a good car. Take your time so that you don’t let your emotions make this large financial decision for you.
