If you are in the market for a new vehicle you need to develop a game plan or run the risk of buying more vehicle than what you need or can afford! We are going to give you a comprehensive step-by-step approach that should give you a fighting chance. Do you have a particular vehicle in mind? While the hybrid SUV has become very popular, you may not be in the market for a new hybrid SUV but these tips will make your experience simple.
Working Out Your Budget
Do you have a budget in mind on how much you want to spend on a new vehicle? This is a step that most people overlook and will take the maximum loan the lender will give but that is risky thinking. What you have to do is look at your household budget and determine what you can reasonably afford to spend monthly on the purchase of a new vehicle. It is not enough to simply make the car payment you also need cash to cover servicing the vehicle and putting gas into the tank. There are people out there who are “car poor”, what that means is they spend such a large portion of their income servicing the debt on their car that they don’t have disposable income for other things like enjoying life.
Finding the Right Auto Financing
After you have worked out what you can afford to spend on the new vehicle you have to shop around for the best auto financing terms. When you have filled out the online applications you should start hearing back from lenders who are going to propose terms, you are not under any implied obligation to accept the terms but it will let you know what lenders are willing to offer and based on that you can then begin shopping around for a vehicle knowing you qualify for financing.
Picking the New Car of Your Dreams
Ok maybe car of your dreams is a stretch but car of your financial dreams may work. Try to check the inventory of each dealership to see whether they have vehicles that are within your budget and you actually like, this step will save you a lot of grief, if you went to the dealership without first checking their inventory there is a good chance you would drive home with a car you may not be able to afford or even want so you really have to be proactive with this step.
When you have identified the dealerships that have the cars you like at prices you can live with you will need to start reviewing the offers and see what type of financing the dealership is willing to provide. Take your time, salespeople know how to create a sense of urgency in the decision-making process so you need to slow things down and make sure the terms you are getting are in-line with what you can afford, only when those steps are addressed can you move forward with the purchase.