We’ve experienced unique events in the auto industry in 2022. Used cars have increased in value due to the supply constraints and high demand. In addition, new car prices increased tremendously too. Buying a car can be a smooth or daunting process in these times.
Let’s dive into the car buying process. Here’s how you can prepare before approaching a car dealership or salesperson:
- Determine your budget for a purchase.
- Identify the car models that you desire that fall within your budget.
- Compare the features and functionality of each vehicle to fit your lifestyle.
- Calculate the monthly payment you can afford (include car insurance payment).
- Obtain financing.
- Test drive the desired vehicle(s).
- Narrow down your car options to the one you like the within your budget.
- Negotiate the selling price.
- If you have a current vehicle, decide if you will trade or sell that vehicle.
- Be sure the vehicle you choose has the features you desire at the price you can afford.
We have identified 10 vital steps to the car buying process. Be sure to take each step seriously so that you can drive away with the best vehicle for your budget. The purchase price is key in the car buying process, as it will determine if you should move forward. While some cars include enhanced features, you need to be cognizant of the price of those features. The overall purchase price could increase with additional features.
Your monthly payment should be within your allotted budget. One aspect that many consumers forget to consider is the car insurance which is an extension of your car payment. The make and model will be one of the factors that influences your car insurance rate. Your credit scores can also affect your car insurance payment. Credit score is important for the interest rate when financing and the car insurance quote. When entering the market for a car purchase, your credit score should fall within a favorable range of 650 or better to obtain the best rates. After obtaining financing and narrowing down to the car you want to purchase, you should negotiate the purchase price. This will shave off any extra dollars that will ultimately increase your monthly payment. Your goal is to make the dealers work against each other to give you the best offer to win your business. Including a current car as a trade-in or selling your car to add cash as a down payment will also help bring the financed price down. You can also shop around your trade-in to the same dealerships to drive up the offer for it as well.
In the end, you want to be happy with your purchase and feel confident that you agreed to a good deal. Do your research by checking the Car Fax and check consumer advocate sites like Kelley Blue Book https://www.kbb.com/ to ensure the pricing is within reasonable ranges for your transaction.
Source:
KBB Editors. 2022, KBB, How to buy a New Car in 10 Steps. <https://www.kbb.com/car-advice/10-steps-to-buying-a-new-car/#:~:text=10%20Steps%20to%20Buying%20a%20New%20Car%201,Do%20Your%20Research%20Online.%20…%20More%20items…%20>
