How to Buy a New Car

Buying a new car is a significant investment. Therefore, it’s important for you to have all of the necessary information to make an informed decision. Although there are a lot of factors to consider before purchasing a new vehicle, this guide will take you through the entire process from beginning to end and educate you about all of the considerations that you need to make while shopping for a new car.

Instructions

1. Before you begin doing any actual shopping, you need to calculate how much you can afford to spend on your new car. By looking at your budget and using this free calculator from the Motley Fool, you should be able to calculate exactly how much you can spend on your new vehicle. One word of advice: once you determine your budget and begin shopping for a vehicle, remember that all new cars have many other costs associated with them that aren’t reflected in the sticker price (including gas, maintenance, repairs and registration), so you will need to keep those costs in mind as you begin looking at new vehicles.
2. In addition to having the option of purchasing a new car, you may also want to consider leasing a new car. What is the difference between purchasing a new car and leasing a new car? When you lease a new car, you aren’t actually taking ownership of the vehicle. Instead, you will make monthly payments over a specific period of time (normally three years), and once that period of time is up, you will have the option to pay the remaining cost of the vehicle and gain ownership of the car, or you will simply give the car back to the dealer.
3. The advantages of a lease are lower monthly payments (along with a lower down payment) and maintenance support from the dealer, while the disadvantages are the lack of ownership (when your lease is up, you can’t trade in your vehicle; you simply have to give it back) and the mileage restrictions (most leases only allow twelve to fifteen thousand miles per year; if you go over this amount, you will be required to pay a fine for each extra mile).
4. Now that you know your options for getting a new car, it’s time to decide what kind of vehicle you need. When you are making the decision between a car, SUV or truck, some of the factors you need to consider include: how many people you will need to transport, how often you will be driving, how far you will be driving and the kind of driving you will be doing most commonly (city or highway).
5. After you identify the type of vehicle you need, it’s time to select two to four vehicles that not only fit your needs, but also your budget. With the help of the Internet, you should be able to find a handful of highly rated vehicles that you can begin actually looking at.
6. When you are doing your online research, you should also get a general idea of the price of each vehicle that you are considering. This will help you down the road when you begin negotiating prices with the dealers.
7. Although it is not a necessity, many new car shoppers choose to secure financing from their bank before they begin looking for a vehicle. While dealerships almost always offer their own financing, it may be possible for you to get a better deal by going directly through your bank.
8. The next thing you need to do is get behind the wheel of the two to four cars that meet your needs and budget. As you are test driving each vehicle, you should be very conscious of how comfortable you are driving the vehicle and how well it performs. Regardless of how much pressure the salesman places on you, don’t buy any a vehicle directly after test driving it.
9. Once you have test driven all of your potential vehicles, compare your experiences with each one. When you are trying to make your final decision, you should also consider the extra options that you want your new vehicle to have. If you have any additional questions or require more information, you should return to the Internet to complete your research.
10. Instead of going to one dealer and buying a vehicle, you should gather quotes from five to ten different dealers. Be sure to explain exactly what kind of vehicle you want (along with the options that you are expecting), and wait until you have received responses from all of the dealers that you contacted.
11. Once you receive all of the quotes, you can compare them and select the dealer with the best price. You will then need to visit the dealer, and you should test drive the exact vehicle that you are planning to purchase.
12. If everything in your test drive goes well, it’s time to finalize your purchase. Before you begin signing anything, make sure that the exact terms of the deal are in writing. This includes things such as the warranty and exact price. As long as everything looks good once you read over it, you can sign all of the paperwork and assume ownership of your brand new vehicle!