Compared to a decade ago new cars today come with more tech gizmos and better safety features. And the reality is, switching to a beat-up clunker that had grimy-looking seats before is an enticing idea.
The truth is many people make huge mistakes when buying cars. Most buyers incur an average of more than $5000 dept in their car loan. They are making payments towards a car they no longer have in their possession. That is sad, but don't worry because, in this article, we’ll share 5 useful tips on how to buy a car the clever way.
Do not buy a car on impulse
If you are looking for a new car, do not let yourself be carried away by flashy ads, attractive offers, or parking lot dealers. Before making the final decision on the car to buy, take your time and consider all your options such as finding a car with the best aftermarket car warranty.
But first of all, check out the cars that you can afford. Then list down the features that are important to you in a car and compare them with those of each model. If you have an idea about what you want before going to a dealer's place, it will be easier for you to make a wise decision when buying a car.
Consider resale value as well as affordability
The resale value of a car is very important because it determines how much you will get when you sell the car in the future. If you can afford a more expensive car, then go for it. However, if your budget is limited, then think about buying a car that has a high resale value. This way, you will be able to get a good price for your old car and buy a new one with the amount received from its sale.
Don't buy more than what you can afford
Buying a car is an investment and as such, it should be treated as one. Buying more than what you can afford might seem like an exciting thing to do at first but in the long run, it can be a disaster. If you buy a car that is more than what you can afford, then you will end up burdening your finances, which means that you will have to cut down on other important expenses like food and clothing. The result is that you will not be able to enjoy your life as much as you would if you weren't having financial problems.
Check the financing options
Before buying a car, check out the financing options available so that you can get the best deal. Find out whether there are any special offers and discounts available and if there are, then use them to get a better deal on the car. If possible, try to pre-qualify for a loan before making any big purchases. Even if you do not buy the car at that time, it will give you an idea of how much you can afford to spend on a car.
Don't buy a new car just because it is new
A lot of people make the mistake of thinking that just because a car is new, it must be the best and most reliable one out there. This is not always true, as several factors need to be considered before purchasing any vehicle. New cars might have newer features and look better than older ones but in terms of reliability, they are often no better than used cars. Some used cars are more reliable than some new ones as they have gone through rigorous testing before.