Are you planning to buy a new car soon? We are planning to buy a new family car in the next couple of months and it has me thinking about how to prepare for it all. We actually bought a new car last spring for my husband’s commute and now it’s my turn to upgrade. If you too, are in the market for a new ride, it’s good to keep a couple things in mind before you buy.
- Get pre-approved. If you plan on financing a car, it is best to have a pre-approval in hand before you go. It’s best to head to your bank or credit union. Having a pre-approval is good for several reasons:
- You know what you can afford and how much your payment will be
- You can prevent multiple hits on your credit report, by having one single one done before hand (car dealers always run multiple checks)
- You will know in advance how your credit looks. It may be that you are going to be charged 15% interest and you will then choose to not finance after all. Wouldn’t you rather make this decision on your own instead of at the dealership?
- Test Drive. Whatever car you think you want to buy, be sure to test drive it first. You never know how a car drives until you are behind the wheel.
- Know your trade in value. If you plan to trade in your current vehicle, be sure to do some research on its value before you sign on the dotted line.
- Know your vehicle’s value. The same is true for the vehicle that you are buying. You need to know its true value so that you don’t pay too much for it. Knowing it’s value helps in the negotiating process too..
- Be prepared to walk away. Don’t pay too much for a car. Make sure that you walk into the dealership prepared to walk away if need be. I went online to look at cars for sale earlier and within 100 miles of me, there were 30,000 cars for sale. You will find another deal.
