4 Smart Steps to Buying a Car

A car is a huge but worthwhile investment. It is a serious but fun purchase that can pay you back over the years. By following a few simple steps, you can ensure you buy the best car for your money while getting the best deal.

Secure Your Financing

Buying a car is stressful and handling everything in one location on one day is a tempting proposition. You’ll receive a better rate and have a negotiating chip if you’ve done some research first.

Financing rates can vary and can affect what you can afford. This may determine whether you aim for a luxurious Genesis sedan or aim for Jeep, Chrysler, Dodge, Ram trucks or another affordable brand. You may also want to look at

Pre-approval Gets You a Better Rate

Securing financing ahead of time makes you aware of your credit score, impacting your loan’s interest rate. Knowing that number in advance allows you to estimate what you’re eligible for.

It benefits you to seek financing quotes from a dealership. You can use a dealership’s online application to get started.

Beyond helping you estimate your interest rate ahead of time, knowing your credit score can help you decide how to spend your money. On the one hand, you may be able to afford a new luxury Cadillac SUV, or you may decide to save by finding a certified preowned of the same model.

To give another example, you may know you want a new Jeep but you don’t yet know which one you can afford. An approval under $30,000 will signal you should aim for the Renegade or the Compass. An approval under $40,000 will indicate a Cherokee or Wrangler. An approval of $50,000 to $70,000 will have you shopping for a Jeep Grand Cherokee, Wagoneer or Grand Wagoneer. Once you know the amount you can borrow, you should search the Jeep inventory to find examples of what you can afford.

Pre-Approval Helps You Negotiate

Going into negotiations knowing your power and worth allows you to secure a better rate from the dealership. Let the dealer know that you are aware of your eligible rate; they will likely counter with an even more amenable number. Just be sure that the better interest rate doesn’t negatively impact other factors, like the length of the loan or the down payment.

Choose Your Car

You know what you need in a car better than any salesman will. Consider the features essential for your vehicle and the primary use of the car. The following options all warrant thought:

• Car vs SUV style

• Number of seats vs actual spaciousness

• Model Personality and Style

• Performance and Drivability: Conservative, carefree, or in-between

• Comfort: Automatic climate system, leather upholstery, ventilated seats

• Connectivity: Apple CarPlay, Android Auto, Wi-Fi capability

Research

Doing your car homework can be fun, and it is definitely worth the trouble. Narrowing down what you want in a car will save you time and money. Fortunately, the internet has streamlined the research process. In addition to simply browsing through available inventory, the following websites will significantly assist you with your studies:

• Edmunds.com

• Consumer Reports

• Kelley Blue Book

If you’re buying a new car, you’ll want to know the invoice price of your preferred vehicle. The invoice price is what the manufacturer charged the dealer for the car. You can use this number to negotiate.

For used car purchases, you’ll want to know current resale values. This cost will help you bargain for the best price for your car. For instance, the new Genesis brand is one of the highest rated among all vehicles, including its luxury class.

Know Your Budget

Knowing the upper limits of your budget narrows down your car search considerably. You’ll need to factor in various elements, including whether or not you are trading in an existing car, how much down payment you can afford, and any money you may still owe on your old vehicle.

Other factors to consider:

• Your current car’s trade-in value via a tool utilizing Kelley Blue Book

• Payments you can afford per month

• Number of months you are willing to pay

Be prepared to negotiate with the dealership and be confident and firm in your budget.

Conclusion

While buying a car is challenging, a few simple steps reduce stress and prevent the undertaking from being cost-prohibitive. Highly qualified staff at a new car dealership can help you understand the loan process.