7 Steps to Buying a Car Wisely
Posted: Sunday, August 15, 2010
by Jim Klark
Car Buying How to and More!
1st. Car Buying Step Selection
When it comes to buying a car today your choices are practically endless. There is some type of vehicle for every need and desire. You can pick from hybrids to sports cars and from a two seater to an eight passenger SUV. So before you go to the car dealership you need to do some research and determine the best vehicle for you. The last thing you want to do is take the advice of a car salesman that is solely concerned with earning a commission and the reason for these steps to buying a car.
2nd. Car Buying Step-Budget
We would all like to be able to skip this step to buying a car and buy what we like, but unfortunately we all have to live on a budget. So to be wise to about buying a car you must figure out your budget for buying and owning a new car. Rather than decide how much you can afford to spend for a vehicle while negotiating with an auto salesman at the dealership you need to figure out your finances at home.
Before you make a trip down to the car dealer's lot you should have already determined how much you can afford to spend. Obviously buying a new car is a big expense, but there are many related expenses that also need to be taken in to consideration. Whether you pay cash for your new vehicle or you decide to finance your purchase there are still items that you must take into account. Determining your budget is a very important part of the steps to buying a car because car salesmen are trained to get you to commit to spending more than you intended.
Some other the other items to budget for when buying a car that many people forget about is sales tax. Depending on where you live this could be anywhere from six to ten percent of the purchase price of your new automobile. That can be a substantial amount of money depending of the vehicle you buy. You also need to consider title fees, license plates, documentation fees and any other car dealer fees. These can add up quick so make sure you consider all of these charges in your car buying budget. You can see why the steps to buying a car and setting a budget are important before you visit the car dealership.
3rd. Car Buying Step-Funding
Now that you have gone through the first two steps to buying a car it is time to figure out how you are going to pay for your new car. You may have thought this section should have been part of your budget, but the fact is that most people finance their new car purchase and financing a car is one area that needs to be addressed on its own. In reality you have three choices when it comes to paying for your new vehicle. You can pay cash, finance or lease a new vehicle. Very few people pay cash or lease anew vehicle today so I will focus on the financing aspect of buying a car.
The car dealer where you choose to purchase your new car will provide financing, but that is not always the best choice. The financing of cars is not a service of the automobile dealership; it is a product that they sell. They are agents for lenders, it may be the auto makers lending division or it may be a bank, but whichever it may be they are selling financing and they can make as much money on your financing as they can on the vehicle your purchase. That being the case you should check with your local bank or credit unions before you make the trip to the car lot. This step to buying a car is one that can save you hundreds or thousands over the life of you auto financing.
4th. Car Buying Step-The Dealer
Where you will be buying your car is a critical part of the steps to buying a car because you want to make sure you are doing business with a reputable dealer. The last thing you want to do is spend your money with a dealer that is known for deceiving their customers. Talk to friends, family and co-workers about their car buying experiences and seek an automobile dealership with a good reputation. This alone can save you money and headaches down the road.
5th. Car Buying Step-Test Driving
Now that you have accomplished the other steps to buying a car you need to put the vehicles to the test. The test drive is one of the most important parts of buying a car because it's your opportunity make sure your vehicle of choice looks, feels and fits the way you expected. You should drive several cars so you compare them before making a decision. However, don't feel obligated to buy a vehicle just because you took it for a test drive. Check the performance, visibility, storage capacities, seating arrangements and everything that is important to you in your next vehicle, after all you be driving it for years to come.
6th. Car Buying Step-The Best Choice
So your drove your possible vehicle choices, set your budget and did your research it's time to make your choice. I will say this again, you should make your choice without the pressure of a car salesman so you can think about this decision logically rather than emotionally. There is no reason to make a snap decision they are plenty of cars available. Take as much time as you need to make the best car buying choice for you.
7th. Car Buying Step-Purchase
This is the last of the steps to buying a car or where the rubber meets the road. You have made your choice so gather all your research and let's go buy a car. Test drive the exact car you are going to buy before working out the details. After the test drive you can get down to working out the price, terms and details. Stick to your budget, and remember that you are the customer and if you do not feel comfortable with the deal you can walk away at any point. Read all the documents thoroughly before you sign anything that you will regret later.
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Top-level comments on this article: (1 total)I have purchased 2 cars in my life, and my last Jeep was repossessed, much to my dismay. I am currently car-less and attempting to save up for a down payment on an affordable car. But I am so nervous with budgeting and everything. Advice??
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