4 Things You Should Do Before Buying a Brand-New Car
Are you considering a new car and are looking for the best deal? According to Statista, roughly 90 percent of households in the United States have at least one car and 64 percent of people report driving every day. Since you’re reading this article, it’s safe to say you’re no stranger to the plight of the modern driver.
Buying a car can be fun and exciting. However, it can also be stressful and overwhelming. There’s always a lot to consider when approaching a big purchase like this.
Check out the top four things you should do before buying a car:
1) Run a background check on yourself.
Before applying for a new car loan, it’s always a good idea to ensure that your financial information (especially your credit score) is good enough to get the loan you’ll require. By getting a free online background check you can not only see if you (or a potential partner) have any convictions (this service will run a criminal background check as well) and all social media accounts, but you can get an idea of the sensitive information that can come in handy when applying for a loan by running a simple and free background check.
For example, you can find out about bad credit, any bankruptcies, employment history, and find the exact number of your/or your SO’s credit score. GoLuckUp is the best background check service for getting a free background check for any type of record you’re looking for. When it comes to purchasing a car, you need to know your credit score.
2) Find the best car loan.
After you’ve made sure your credit history is in check, then it’s time to compare car loans in order to get the best deal. When it comes to monthly payments, an ideal interest rate, and the best loan terms; you’re going to want to find out which financial institution is best for your car loan needs. For example, as the borrower, you must make sure that your credit history and competitive interest rates are lining up the best they can (always be sure to check the fine print).
According to moneysmart.gov.au, when looking for an auto loan, it’s important to look for the best lender for your financial needs. They recommend knowing the following for getting the best auto loan rate:
- Exactly how much you can spend (overall and as a monthly payment)
- The best interest rate available to you
- How much the repayments will be at the best rate
3) Visit dealerships.
Bonus Tip: make sure you have an idea of what type of financing you have available to you BEFORE visiting dealerships. According to Forbes AND Consumer Reports, not doing this is a common mistake many car buyers make.
It’s important to physically get an idea of what you’re looking for. Here’s your car dealership visit checklist:
- Test drive multiple vehicles you’re interested in
- Test drive on freeway and city roads to properly see how it handles
- Visit multiple dealerships to compare costs in order to get the best deal
- Bring a calculator to calculate interest rates, monthly payments, etc.
- Be sure to look over the fine print
- Don’t settle on one model—style AND functionality matter more
- Make a list of features you need so you won’t be tricked into a lot of unnecessary “add ons.”
4) Do your research (a lot of it!)
Let’s get real—currently, using an online search engine and doing some basic research on a car isn’t that difficult. It is, however, extremely important.
Here’s a checklist of things to research before buying a new car:
- Contact your insurance provider to see how much it will cost to insure the car you want.
- Research the value of your current car.
- Research whether the car fits your needs. According to an article published in Forbes, this was the #2 mistake made by people purchasing a new car. The car you purchase should fit both your daily commute AND travel needs.
- Research safety features and if the car you plan on purchasing has the necessary features for optimal safety.
Bonus tip: after you research what your old car is worth, you should either sell it on your own or sale it to a dealer. According to Forbes AND Consumer Reports, trading in a vehicle when buying a new one is never advised as it just gives the seller more opportunities to profit off your “convenience,”