Buying a car sounds easy enough. You walk into a dealership and choose whatever fits you. Well, not really!
First, not everybody buys cars out of dealerships these days. Most people are happy with a second-hand car that works fine. Then, there is more to buying a car than just its initial price. Before you know it, you may have to hire not only a lemon car attorney but also buy a new car, thus affecting your finances, savings, and your daily lifestyle.
Because we are all about making things financially safe – here’s how to buy a car with your finances in mind!
Paying in Cash
It is no secret that, if you pay your car in cash, you’ll save a lot of money on interest. But that’s not everything. Some dealerships may also offer discounts to customers that choose cash as their preferred payment option.
While a loan may seem like the easy way out, for some, a cash payment will save enough interest to help you deal with taxes/fees and ultimately save money.
Research Before Purchase
If you do not plan to buy your car in a dealership, it is recommended to do some research on the vehicles that you have in mind.
Doing so will not only help you know the exact market value of the vehicles but may also help you spot irregularities that could have you hire a lemon car attorney. Proper research ensures that, when you get to see the car, you will know exactly what to check on it!
Comparison and Negotiation
Don’t stop at a single dealership! Get to know the prices for your potential vehicle(s) of multiple dealerships. Compare, if possible, the price listing of all the dealerships in your city before choosing one.
Knowing the information above can also help you negotiate with a salesman. If you know that other dealerships are selling the same car for cheaper and you tell this to them, you may end up receiving a discount.
Used versus New
Most, if not all, your acquaintances will tell you to buy a used car and not spend an atrocious amount of money on a brand new one. Why?
Because you get to enjoy the exact same features of a new car even if you buy it used, moreover, special features that may increase the price of a car in a dealership may not be so important for someone trying to sell their car.
The Total Costs
Finally, it is worth mentioning that the price tag of a car is not the final amount that you’ll pay for it. This is where a lot of people end up going into debt or getting a loan!
Why? Because they fail to estimate and/or consider things like registration, interest rate, additional features offered by the dealership. Keep in mind that you will always have to pay more than what you see on display.
The Bottom Line
Keeping things financially safe means knowing what you sign up for. Some may afford to buy a new car on the spot, but people true to the financial goals and expectations will always try to balance the purchase of a good vehicle with their income and finances.
As such, our recommendation would be never to rush purchase and to take your time to research everything that you need to know about it!