Whether you are buying your first car or your seventh you need to know the right facts before you buy or lease. If you are buying there are several options. Do you have a vehicle to trade-in? Are you purchasing from a dealership or privately?
When buying a car you should consider:
– Do your research and buy the right vehicle for you. Are you traveling far to work or will it mostly be used for recreation? Is gas mileage a key factor for you? If you have a growing family you may need a car with third row seating or if you commonly move things for your business you may need cargo space!
– Should you buy a new or used car? There are benefits to both. New cars typically have more warranties, but used cars are usually more affordable and have already taken a depreciation hit. If you are buying a used car, it is important to know the vehicle’s history.
– Research options for auto loans and check into interest rates before you shop because you will be more informed when you decide.
– Check out some online pricing before you go. Some dealerships advertise online prices that are lower than the vehicle’s price tag when you go to the dealership. So if you are looking at a specific vehicle know the statistics before you go in
– Leasing a car is another option. If you are not going to keep your vehicle for the long term you will save if you lease. If you buy a vehicle and then try to sell it after only three years you will most likely owe more than what it is worth due to depreciation.
– Negotiate the lease price of a vehicle price just like you were buying it. If you compound the monthly lease payment over the years of the lease you want to make sure it is a cost you can live with considering you will not own anything in the end.
-Be aware of leasing taxes and fees that can be sneaky. They may be baked into your payments and not told to you upfront.
Shop around especially if you are trading in another vehicle. Every dealership is different and offers different prices on cars and different trade-in values. You or your family may be loyal to one particular dealership or car salesman, but it will save you a bundle to get the best deal out there. The most important thing is to be informed about your purchase. Gary Field and his associates can give you the insight on any important deals you encounter in your financial endeavors. This includes “plain vanilla” decisions like how to pay your taxes and bookkeeping all of the way to buying or leasing a car and beyond!
