Are you thinking about buying a new car? If so, we couldn’t be more excited for you.
Buying a new car is like gaining a new best friend. You’ll go everywhere together and rely on each other on a daily basis. Some people even name their cars to add to the personification of these assets.
But before you get ahead of yourself, there are a few things you’ll want to consider before making your purchase. Buying a car is a huge investment, whether you’re buying new or used.
We’re here to help you out. Keep reading for the top four things you should consider before you purchase a new car.
1. Your Budget
First, let’s take a look at your budget. How much money can you afford to spend on a new car?
Keep in mind, your expenses don’t end with your monthly auto loan payments. You also need to think about:
- Fuel costs
- Auto insurance
- Registration fees
- Vehicle maintenance and repairs (about $400 a year)
Factor these expenses into your budget to make sure you’re not spreading yourself too thin.
2. Loan Eligibility
Of course, what you can afford in real life versus what you can afford according to the bank may not align. Get preapproved for an auto loan to identify your maximum budget. This will also give you insight into your monthly payments and interest rates.
If you can’t get approved for a big enough loan or you want a better interest rate, shop around through different lenders. However, you might also have to take a step back and spend a few months boosting your credit score before buying a new car.
3. Your Vehicle Needs
Whether you’re going to buy a new car or a used car, make sure the vehicle fits your lifestyle. For example, if you’re looking for a daily driver to take you to and from work, find something with excellent fuel efficiency.
If you have several children, get a vehicle with plenty of space, like a van, SUV, or wagon. For example, the Toyota Land Cruiser is an amazing family vehicle that also comes with four-wheel-drive for off-road adventures.
4. Vehicle History
Finally, if you’re buying a new car from the used or certified pre-owned inventory, get your hands on the vehicle history report before signing any contracts. A vehicle history report will tell you everything you need to know about the car’s past.
- The number of previous owners
- Locations of the previous registration
- Commercial use history (lease, rentals, fleet)
- Factory recall history
- Maintenance history
- Major repairs and damages
- And more
These are important things to know about the car you’re going to be driving every day. If the seller won’t provide you with a vehicle history report, abandon the deal and find a new car dealership.
Are You Planning on Buying a New Car?
Are you ready to buy a vehicle? Follow our guide on buying a new car to make sure you get the best vehicle for the best price. Take your time and do your homework before making a decision.
And if you’re looking for more consumer tips or automotive advice, you’re in the right place. Check out some of our other articles before you go.