Buying a Car? Understand These Important Tips

Buy a New Car

Buying a car can be one of your largest purchases you will make.  Next to buying a home, a car is likely going to be your largest expense.  There can be times when we let our emotions get the best of us when looking for and purchasing a car.  It’s the thought of something new to us that gets the mind wandering.  When we let our emotions control our spending, we tend to make careless mistakes.  Careless mistakes can end up costing you a lot of money, especially when it comes to buying a car.  Here are some important tips to understand when you are buying an automobile whether it is new or used.

Pricing

The main aspect of buying a car is the price.  The price you see is not what you have to pay.  Depending on if you are buying a car from an individual or a dealer, you need to do the proper research to see if the price is justified.

One thing not to do is underestimate the value of the car.  You can’t negotiate properly when you don’t understand all aspects of pricing.  Why is a car priced a certain way?  What is the demand for the car?  These things can help you understand overall pricing.

Financing

There are two ways of buying a car.  You can pay in cash or finance it.  The best method to buy a car is with cash.  While this is the best, it is also out of reach for many people.

When you are buying a car, you need to know how much you can pay.  Before you go searching for a car, you should line up how you will finance the car and with whom.  Once you pick a vehicle you like, then you can contact the lender to see if they will loan you the money.  People with good credit can usually get a low interest rate, but that doesn’t mean people with bad credit are left to the wolves.  People with less than stellar credit can seek loans from MoneyBarn’s bad credit car finance.

Inspection

Inspecting the vehicle before you pay it really important. While this is not necessary for a new car purchase, it should be done with any used car purchase.  You should have a mechanic inspect the vehicle to make sure it doesn’t have any issues.  This information will allow you to negotiate the right price and save money on your car purchase.  Many people get burned when they buy a car with problems.  It is really the car buyers responsibility to verify the sellers claims.

Whether you buy a new or used car, you should be responsible for the entire purchase process.  Take time to understand the pricing, gather all of the required financing, and inspect the vehicle before you sign any paperwork.  This will ensure a smooth car buying experience.

 

Photo courtesy of: John Loo

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About the author:

I'm the founder of Frugal Rules, a Dad, husband and veteran of the financial services industry. I'm passionate about helping people learn from my mistakes so that they can enjoy the freedom that comes from living frugally. You can connect via Twitter / Facebook.

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