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Plenty of people across the United States share a blissful joy when buying and owning a car in their name. The feeling you get once you get the car keys in your hand is indescribable when you work so hard to achieve this milestone in your life. Whether you are getting a new vehicle or are buying your first car ever, the excitement you get after you sign on that dotted line is like a kid who gets their desired toy on Christmas Day.
With many Americans owning more and more vehicles every year, it’s possible that you are getting the urge to buy a vehicle that meets your needs and preferences. Of course, it’s essential to verify your income to determine if you can afford a car purchase and avoid draining your funds in a single swoop. Make sure you aren’t making an impulsive decision and ask yourself, “Do I really need this vehicle?” If you require constant transportation to your job, school, or elsewhere, a new vehicle is probably a necessity; but if you already own two cars and are considering a new one, then you might not need to shelve out some cash for another vehicle. Your money is yours to spend, but review your finances before making a purchase to stay away from a challenging situation.
If you are considering getting a new car, then there are some facts you need to know that may help you in the purchasing process. Even if you bought a car in the past, it may be helpful to read some things you may not have been aware of that minimize the risk of losing money. If you keep these items in mind when you are looking for a vehicle, you will increase your chances of making the right decisions that will lead you to the car of your dreams.
Here’s a look at 4 things you probably didn’t know about buying a car today:
1. New Vehicles Often Lose Value Quickly
Are you considering buying the new Mazda CX-5 or the latest Ford F-150 pickup truck? Regardless of the new make / model you are interested in, it’s important to acknowledge how quickly newer vehicles depreciate in value after you purchase them. It’s true that every car loses value the moment you take it off the lot, but newer vehicles tend to lose 9% the first minute they’re on the road compared to older models. The value of a new car can decline around 20% during the first year of ownership, with experts stating that the vehicle can continue dropping 15% each year consecutively. Unless you buy a new vehicle with great resale value, you can expect to lose a significant amount of equity throughout the initial five years of owning the car.
If you want to get a vehicle that will slow in depreciation, it’s recommended that you purchase a used car instead of opting for a brand new model. Since those older vehicles already experienced a significant depreciation, the same effect won’t apply to you after you buy it from the dealership. Make sure you compare the pros and cons of a brand new or used vehicle and decide which one meets your requirements.
2. Take Advantage of the Test Drive
Being dead set on a car that you want can sometimes blind you from seeing the things you need to know before making the purchase. If you already own a vehicle, you might have done the process of taking it out for a test drive when you were looking to get it from a dealer. However, it’s possible that you didn’t pay attention to some crucial details that might have helped you make an informed decision about your desired vehicle.
When you are testing a car from the dealership, it’s best to focus on the feeling of the car, the comfort, accessibility, steering, and, more importantly, the braking. If anything looks or sounds off, you should pinpoint that to the dealer and get information on that issue. The seller may try to sway you from those glaring problems, but don’t lose your footing and stay firm on your stance. They may be able to find solutions to give you peace of mind or help you find another vehicle that’s in a better condition. You should always check out different areas of a vehicle before purchasing it to avoid spending money on repair / renovation costs.
3. The Car Sale Contract May Have Important Details
Getting a car is a long and arduous process that typically takes a day (or even weeks) to get to the finishing touches of completing the purchase. When you finally get closer to obtaining your car keys, it’s understandable to skim through the sales contract and sign off without a second thought. However, failure to read the entire contract can result in some painstaking issues that’ll be a headache to resolve in the future. So, whenever you get the contract in your hands, ensure your personal details are accurate, the savings are outlined in the document, check for the warranty information, and be on the lookout for any hidden charges. If you missed any errors after signing the contract, don’t hesitate to dispute them with the dealer to correct them. You can always contact your state’s Consumer Protection Office if you feel like you are a victim of wrongdoing by your car dealer.
4. Financing Through a Bank May Be Better
When it comes to car financing, it can be tempting to work with the dealership where you are purchasing the car from. But, you may miss out on some great benefits that you would have gotten if you financed your car through a bank! For instance, securing a loan from your bank before heading to the dealership can save you time and hassle. You won’t have to deal with the dealership’s loaning process, and many banks now let you apply online from the comfort of your home. Plus, banks often offer lower interest rates than dealerships, which means you can save money while paying off your car! Having your financing lined up in advance also puts you in a stronger position to avoid unnecessary add-ons that can drain your budget.
If financing through a bank seems reasonable, it’s a good idea to shop around and find the best deal for you.Whichever way you decide to finance your car, know that if you have trouble managing your finances, there are options out there to help. As a car owner, if you find yourself in a tight spot, you can use your vehicle’s title to apply for a car title pawn or a car title loan online. Just make sure to do thorough research before applying to see it’s the right fit for your financial situation.
Bottom Line ⎼⎼ Learn All the Different Things You Need to Know About Buying a Car
Buying a car can be problematic if you aren’t aware of the various things surrounding the purchasing process. However, if you keep these aforementioned facts in mind, you can reduce the risks of getting a car from a dealership! Go online now to find other items you might not know about that can help you become a savvy buyer.