Purchasing a vehicle is a big decision. Purchasing a car will affect your finances, safety, ability to get to and from places you need to be, and more. This is why it’s so important to factor all this information into the process of purchasing a vehicle before you decide where to buy the car from and before you talk to anyone about the sale of a vehicle.
New Or Used?
There are two main options when purchasing a vehicle: a new or used car. Both options can be practical depending on your finances and what you need to use the car for.
- Benefits of a New Car: A new car will be more reliable and likely come with a warranty and benefits the dealer provides to keep up with regular maintenance. For example, you can negotiate for a free oil change or two during purchasing. Speaking of negotiating, during this time, you will be able to talk about financing the car, which means there will be no upfront cost if that is something you cannot do.
- Downsides of a New Car: The total cost of the vehicle is typically more than a used car would be, and once you leave the lot, the vehicle loses a large amount of its total value.
- Benefits of a Used Car: A used car costs less than a new one. If you can purchase a used vehicle through a dealership, you can still finance the vehicle, which means you don’t have to pay the total amount for the car upfront. A big plus if you are handy with cars yourself since used cars are more likely to run into problems, you can replace parts yourself without worrying about maintenance costs being too great in the near future.
- Downsides of a Used Car: Of course, if you aren’t too handy with vehicles, the maintenance costs on a used car can be a deterrent. Plus, some used cars will need to be paid for in the total amount without being financed, especially if you purchase from a third party.
Tips for Finances
Get Preapproved: Getting preapproved for a loan will help you purchase a vehicle. Right up front, you will know how much you can be approved for, making it easier to set expectations for what type of vehicle you can afford.- Check Market Price: Websites like Kelly Blue Book can help you determine a fair price for a vehicle, especially a used vehicle.
- Qualifying Discounts: It’s a good idea to check if certain dealers offer discounts you might qualify for. For example, first responders and military sometimes receive special discounts.
Figure Out What You Want
Before you begin shopping for a vehicle, be sure you understand what you want and need in a car. Do you have children? Then you might wish for certain safety features and enough space to fit your whole family. Do you need a certain amount of space in the vehicle? For example, if you own a giant dog breed, you will probably want enough space in the car to drive your dog to vet appointments or on road trips with you. All this will help you ask the right questions before settling on the right vehicle.