Buying a car is exciting, but take the time to find the best deal for you!
General Information
Before you purchase a vehicle, figure out the monthly payment amount you can afford and what type of car you need. According to Bankrate, (www.bankrate.com) you should not spend more than 20% of your monthly net income (your take-home pay) on a car payment. After calculating this number, take into account all of your other monthly living expenses (rent, phone, groceries, etc.) and determine how much of a payment you can realistically afford.
Choosing a Car
Before choosing a vehicle, consider the following questions so you can research what cars match your needs. Does the car get good gas mileage? Do you want a manual or an automatic transmission? Do you need a front wheel, all-wheel or four-wheel drive? Do you need to have a lot of space? Are there safety features you need?
There are many online resources for searching for a vehicle. When you are ready to test drive a car, it is time to select a car dealership. Take into consideration the size of the dealership and how many vehicles they have in stock. It is helpful to know if they have special sales, a service department and a good reputation. You can get recommendations from friends and co-workers about car dealers and check out more than one dealer.
Once you have selected the car dealers, review cars in their inventory. It’s a good idea to test drive the cars you like, so you can see how the car handles. Test drive more than one car. Do not make a decision too quickly. Make sure the cars you consider meet your needs!
Negotiating a Deal
You can negotiate for a better a price when you purchase a car. Here are some helpful steps:
1. Ask the dealership for the invoice price, (the lowest price a dealer offers without any fees).
2. Search online for the suggested price for the type of car you are choosing (the Manufacturer’s Suggested Retail Price or MSRP) to help you in the negotiation process.
Leasing or Buying
Consumer Reports has information on the pros and cons of buying or leasing a car.
Resources
A great website to do research on cars before going to the dealership is www.edmunds.com.
Compare the pros and cons of buying or leasing a car at www.consumerreports.org
Kelly Blue Book offers tips for buying your first car at https://www.kbb.com/.