New Cars - Granite Ford

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Buying a new car brings up many difficult questions. These six tips will help you find a car that fits your budget and lifestyle.

1. Compare Fuel Efficiency

When considering which vehicles match your budget, you should think about long-term costs as well as how much you have to spend at the dealership. A car that burns a lot of gasoline will cost you more than a highly fuel-efficiency vehicle. If you want to keep your annual costs down, make sure you buy a car that doesn’t burn too much fuel.

The U.S. Department of Energy makes it easy for consumers to compare vehicles. Just search the vehicle on the website and select the cars that interest you. The site will give you a side-by-side comparison.

2. Compare Insurance Costs

Your car insurance will also add a significant amount to the long-term cost of owning a car. Once you have a list of several cars that interest you, contact insurance providers to get price quotes. You will likely find that some cars cost more than others. You’ll also find that insurance companies charge different prices for the same vehicle.

It pays to spend extra time doing research. A few hours comparing quotes online could save you hundreds of dollars.

3. Know When to Shop

Dealerships have some flexibility when selling you cars. The more they want to sell the car, the better deal they will give you. To get the best deal, buy your car:

  • during the week when dealerships aren’t busy
  • at the end of the month or quarter (dealerships often want to meet sales quotas that snag them extra money from manufacturers, so they’ll drop their prices)
  • at the end of the year if you can wait that long

4. Compare Interest Rates

The dealership may offer you the lowest possible interest rate. Then again, you may get a better rate from a bank or credit union. It depends on several factors, including:

  • your credit score
  • what incentives the dealership offers
  • the car you’re buying

Comparing interest rates will help you find the best deal. That means you need to talk to the dealership, your bank, and other lenders. If you don’t do your research, you’ll never know whether you’ve spent too much money.

5. Have a Large Down Payment

Generally, people with bigger down payments get lower interest rates. Start saving now so you will have a down payment that makes it easy for the dealership to offer you an excellent financing package.

6. Look for Extra Buying Incentives

Owning a car means you will have to pay for things like oil changes and regular maintenance. However, many dealerships will sweeten the deal by including these as buying incentives. Ask your seller what she or he can offer. Getting free maintenance, roadside assistance, and other incentives might not seem like a lot in comparison to the price of the vehicle, but they add up over the years.

Is this your first time buying a new car? What concerns you most about your upcoming purchase?