Next to buying a home, the purchase of a new or used vehicle is one of the most important financial decisions that a person or family can make. There are many factors to consider when making a purchase of this magnitude. The most important thing to do is assess whether or not the purchase of a new vehicle is a necessity or merely a want. Making sure you are financially able to make this purchase is important to consider.
The decision to lease or buy will come down to many factors. Although leasing options offer a lower down payment and cheaper monthly installments, the interest can run higher than that of most loans. If you do not have much of a down payment, or the possibility of trading in another vehicle, then leasing may be a better option. For someone who is looking to own a vehicle outright, a low interest rate auto loan is by far the best option.
As with purchasing a home, it is vital to make sure you have properly invested or have been approved for a loan, before seriously shopping for a vehicle. Try to find the lowest interest rate possible through your bank or another lending institution. This also provides a significant amount of leverage when it comes to shopping at the car lot. Anyone with payment in hand has more control of their entire buying experience.
Once you have the money secured and your ready to go shopping, take your time and compare prices, deals, and keep an eye out for sales on older model used cars. The Internet makes shopping for a car much easier, as we no longer have to go from lot to lot in search of a better deal than the one you found down the block. Make educated choices concerning fuel mileage, comfort, environmental factors, and most of all, safety. Never short-change yourself or your family when it comes to the purchase of a new vehicle.
It is important that you don’t let the car lot attendant or salesperson choose your car for you. Before arriving at the lot, know your target costs, the type of vehicle you are looking for, and the add-ons that you may request. Don’t stray away from this mind set, as salespeople will try to get you excited about something that you would normally never buy in the first place. Trust your intuitions and do not let sales people make you feel rushed.
Some would agree it is better to save for and pay in full for a new or used vehicle. For some, the luxury of getting something right away with a small payment and a signature is alluring and hard to resist. If you are ready to head to the lot, some say the best months are during the fall season and the best day of the week being on a Saturday morning. The theory is that this is when dealers and sales associates are gearing up for the weekend, often offering lower prices and more willingness to negotiate with potential buyers.
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