Car Loan – AutoGeeze | Latest Sport Car News Insurance Wallpapers Rentals Prices Parts and Reviews https://www.autogeeze.com Bringing super sports cars at your own showroom Wed, 03 Jul 2019 12:42:40 +0000 en-US hourly 1 https://wordpress.org/?v=5.0.4 British car buying and the changing automotive market https://www.autogeeze.com/2019/05/british-car-buying-and-the-changing-automotive-market/ Tue, 21 May 2019 15:17:04 +0000 http://www.autogeeze.com/?p=10567

Google’s ‘Car Purchasing Process UK’ report recently revealed that 70% of British people own their own vehicle and over half of these have purchased a car within the past two years. As a nation of tech lovers and upgraders, we’re always looking for the latest model, whether that means our phones, our clothing, or our vehicles. Many car owners opt to upgrade to a newer vehicle every two or three years to keep up with the latest advances in technology.

According to the same report, over half of all car owners in the UK planned to purchase a new vehicle within the next few years, with 20% planning on buying a new car within the next six months. Of these, almost half said that they planned to purchase a new car, with 37% saying that they would choose a used car. But which factors influence the British car buying process and how is the automotive market changing? Motorparks, who stock a range of used vehicles including the used Ford Focus Automatic, investigate…

How are the purchase decisions made?

According to Google’s Drive to Decide report, one of the main factors in deciding to purchase a new vehicle is a change of lifestyle. The report reveals 28% buy a new car because their financial situation had improved, 12% because they had a new job, 11% because of expanding their family, 7% because they moved into a new home and a further 5% because of health or age reasons.

That doesn’t mean that British car buying habits aren’t influenced by more practical reasons, however. In fact, the report also revealed that decisions have be heavily influenced by new offers, vehicle launches and desires. 41% choose to buy a new car because they ‘need one’, 35% because they just wanted a new vehicle, 24% due to wanting better fuel efficiency, 20% because they notice a good offer or promotion and a further 11% as a result of a brand-new vehicle launch.

It’s common for people to find themselves buying a new vehicle every couple of years. Google’s reports highlight that car owners who bought their new vehicle more than two years ago are the group most likely to purchase a replacement vehicle in the next six months (30%) or between seven and 11 months time, with the most likely factor to influence the decision being typical car warranties running out after three years.

The changing market

The car dealership market in the UK is thriving. From independent dealers, comparison website and private sellers, to franchise and manufacturer dealerships, the car supermarket is populated with a whole host of channels trying to get car buyers to buy their vehicle through them. And the market is evolving. The dealership still appears to be at the heart of British car buying habits, with the average auto buyer visiting the dealership 2.1 times, and having 1.3 test drives before making their purchase.

As the market continues to change, however, buying trends do too. Over a third (36%) of those looking to buy a car online in the coming years would choose an independent site. Manufacturer websites are only just falling behind, with 33% choosing main manufacturers.

The advent of newer, more advanced technology has influenced buying decisions too. Car buyers are increasingly starting their research for their new car on digital platforms – which could be one of the reasons why independent websites have now become more popular than official manufacturer websites. When beginning the car buying process, 51% of buyers now start their research online, with 32% using their smartphones to aid a ‘Which car is the best?’ moment. Digital has transformed the way buyers do their research before purchasing, and in some cases, has completely transformed how they buy a car – with 54% of buyers considering buying online either now or in the future. However, as it stands, the majority of purchasing (96%) still happens in-store.

How do British consumers pay for their cars?

There are a variety of different ways to pay for your car. The majority of vehicles are purchased using personal savings – the Google ‘Car Purchasing Process UK’ report revealed that of those looking to purchase a car in the next few years, 59% said they would use their savings! Part exchange took second place, with 37% saying their part exchange would help fund their new vehicle. For many people, using the capital in their existing vehicle provides a sizable deposit for their next vehicle, deducting an amount from the value of the new vehicle.

Hire Purchase and Contract Purchase agreements were the two most popular ways to finance a new car according to the report. 13% of buyers said they would think about HP and 10% said they would consider PCP. Lease Purchase and Contract Hire only account for 6% of the market each. So, what makes HP and PCP more attractive to car buyers?

There are numerous benefits to paying for your car in stages. Finance agreements often make buying a car more affordable, with fixed monthly payments across an agreed period of time also coming with the option for people to purchase the vehicle at the end of the term by paying the remaining balance on the vehicle. For some car buyers, monthly payments are more achievable and affordable than paying for the vehicle outright with a cash purchase. Whilst analysing the methods of buying a new car, the Google ‘Car Purchasing Process UK’ report reveals further figures that prove the interest in finance options for car purchasing. Owners of new cars purchased in the last two years, as well as those planning to buy new in the coming three years, show strong interest in the use of PCP, PCH and lease purchase. Around a fifth (21%) of those who have bought new in the last two years would use PCP to pay for their next car, while 16% who plan to buy new in the next three years would use PCP.

The EV market

Business is also booming for the electric market in the UK– 2018 was a record year for new car sales, with approximately 132,000 new electric registrations by December. The success across the market could be attributed to some of the latest developments in the industry meaning that some of the initial set backs are becoming less of an issue to drivers – and the news that the government plan to ban the sales of petrol and diesel vehicles by 2040. The success of the EV market in the UK can also be attributed to the development of related services; electricity suppliers such as Northern Powergrid have been working on EV charger installation across the country.

Have you thought about upgrading your own vehicle? Which factors influence your car buying habits? This discussion provides a lot of food for thought for both buyers and players in the industry.

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Is a car loan the same as a personal loan? https://www.autogeeze.com/2018/12/is-a-car-loan-the-same-as-a-personal-loan/ Fri, 21 Dec 2018 13:52:54 +0000 http://www.autogeeze.com/?p=10515

Let’s face it, there’s nothing more convenient than being able to drive to and from any place you want. However, considering your current daily expenses, buying a car, whether brand new or second-hand, may be problematic. For this reason, taking out a loan could be your best bet.

The most common loans to choose from are car loans and personal loans. Assuming you’re able to provide all the requirements needed for each one, it is fairly easy to get one. Today, applying for either personal or car loans is mae much easier thanks to online applications. You can easily look at car loan rates and figure which choice is the best for you.

But what is the main difference between the two?

Personal Loans versus Car Loans

There are two kinds of personal loans, secured and unsecured. The former requires you to secure your loan against something of value like your house so that the lender can seize ownership of the asset if the loan is not repaid. The latter, on the other hand, considers only your credit status.

Car loans is a kind of personal loan used solely for the use of purchasing cars, as the name implies. It becomes a secured loan if you put up your car as the asset of value in the event that you are not able to repay the loan. This type of loan considers the depreciation value of the car over time and may require you to make a downpayment early in the term. Just like mortgages, the lender technically owns your car until you have made the final payment.

Important things to consider

Before you choose one on a whim, make sure you know the details involved in each type of loan. Consider the following items first:

Terms of payment

Look at how much you need to pay monthly and see if it falls within your budget. What you want is a monthly payment with low interest so that paying for the car would not put a dent in your expenses. You should also look at the payment terms. Note that longer payment terms will most likely have a lower monthly payment amount, but will have a higher interest over the agreed loan term. On the other hand, short payment terms have higher monthly payments, but will have less interest since you will have paid the principal rate immediately.

Interest rates

Interest is what you pay the lender for providing the payment to purchase your car. The amount is usually based off of the car’s list price and your current financial status. Personal loans have higher interest rates than car loans, but it can still be lowered if it is a secured personal loan.

Credit score

If you decide on getting a personal loan, make sure that you have good credit standing. The lender will want to see if you have the capacity to make the monthly payments or have a history of not paying debts. In case you have a less than ideal credit score, you try your chances in getting a car loan instead; but do note that they can increase the interest rate because of it.  Regardless of the type of loan you choose, make sure you have good credit standing so that the lender feels at ease.

Consider all of these before settling on a loan type. You should also look for other lenders and compare interest prices and term flexibility. This can help you see which can fit in your current financial situation and allow you to make the payments without any problems.

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4 Ways Pre-Approval Can Simplify the Car Buying Process https://www.autogeeze.com/2018/09/4-ways-pre-approval-can-simplify-the-car-buying-process/ Fri, 14 Sep 2018 18:06:11 +0000 http://www.autogeeze.com/?p=10453

You may get flyers in the mail all the time with stamped lettering across the front stating, “You’re Preapproved!” And, like most people, you may toss those right into the trash pile, never bothering to learn for what you’re preapproved or even for how much. Yet, if you’re in the market for a new vehicle, maybe you should take the time to open an envelope or two and see if any of the preapproval offers are for vehicle loans.

While it is true that most companies that offer preapproval for credit cards charge exorbitant interest rates and stricter-than-strict terms, if you receive a car-loan prequalification offer from a reputable company such as, say, Capital One, it couldn’t hurt to look into it. In fact, if you hope to enjoy a simple car loan process, it may be in your best interest to apply for prequalification. Below are four good reasons why.

 

Preapproval Helps You Set a Realistic Budget

Most preapproval offers are pretty spot-on with how much you can afford, as they calculate how much car and in interest you can afford based on your income, existing expenses, etc. Though you should never go car shopping without a budget in mind, preapprovals make setting a budget so much easier, as they give you a hard number to start with before you’re faced with shiny new vehicles and an overzealous dealer.

Keep in mind that your purchase price should really be about 10 percent less than what you’re preapproved for, as most calculators do not take into account sales taxes and fees. Also, consider your down payment. The more money you put down, the more you can afford.

 

Preapprovals Help Strengthen Your Position

Prequalification calculators take into account your credit history, score, income, and more to come up with a realistic purchase price, terms, and rates. This puts you in a position of strength when you go to the dealership.

Without that preapproval letter, the dealer will most certainly have all the power. Because you don’t know how much you can really afford, the dealer may be able to convince you that you purchase buy a car that is well outside of your budget, or that your “low credit score” warrants high interest rates. The dealer may also even attempt to pack the payment with charges or fees that are often unrelated to the vehicle at all. When you walk in armed with a preapproval letter, however, you can avoid these hassles altogether and get right down to business.

 

Preapprovals Protect You From Dealer Markups

Dealers love buyers who utilize their financing, as it means that they get a share of the profits. Dealers make their commission through what is called a finance reserve, which is typically an extra percentage added to the interest rate – usually one to three percent. For instance, say you get approved for a vehicle at 4.5 percent interest. The dealer keeps this from you and charges you instead 7.5 percent interest. You assume this is the best rate you can get and take it, not knowing that you just cost yourself an additional $756 to $1,512 or more over the course of your loan. By getting preapproved before you head to the dealership, you can know exactly what types of rates to expect, and therefore, walk away from ones that you know are marked up.

 

Preapprovals Help You Negotiate for an Even Better Deal

You can use your pre-approval to your advantage all the way through to the end of the deal. Right before you’re about to sign the papers, the dealer will try to convince you that you need a bunch of costly add-ons. Some such add-ons include a warranty, seat warmers, cleaning services, etc. To deflect these add-ons, say something like, “I’m preapproved for this amount and I’m not going over it.” If you remain firm, the dealer will usually desist. If you’re lucky, however, the dealer may throw in the add-on “for free.” Either way, thanks to your prequalification letter, you avoiding paying any more for features you don’t actually need.

Many people avoid preapprovals for fear that they’ll end up costing them more in the long run than if they had obtained a loan the traditional way. When it comes to financing a vehicle, this is far from the case. Preapprovals can help you set and maintain a realistic budget and strengthen your negotiation position.

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How to find the best car deals for you https://www.autogeeze.com/2016/08/find-best-car-deals/ Wed, 31 Aug 2016 23:24:09 +0000 http://www.autogeeze.com/?p=10224 buying-a-car

Buying a car is usually one of the most expensive purchases that many of us will make. As a result, you should take your time when making your choice so that you can find the best vehicle for your needs – at the most attractive price possible.

Join new and used car dealership Motorparks as they guide you through the steps you need to consider for finding the best car deals every time:

First things first – do your research

The most important word of advice when it comes to shopping for a car is to never make a rash decision — this is a big investment and so plenty of research is strongly advised.

There are two main factors to consider here. Number one, what do you want from your set of wheels? Number two, how much will the vehicle that has caught your eye eventually cost you?

To answer these questions, work your way through the following checklists:

Checklist 1: What do you want from your vehicle?

  • What is more important to you — a fuel-efficient car or one that is so spacious that it will be able to comfortably accommodate the entire family?
  • Does your vehicle need to meet a specific need? Perhaps it will be required to fit into a small space when parked at night, or tow a trailer/caravan on a regular basis.
  • Will the car be used more for short commutes around a city, or longer trips along the motorway?
  • Which form of power is more appealing to you — petrol, diesel, hybrid, electric, hydrogen?
  • How big will the boot need to be? Everything from a pushchair to a wheelchair and sports equipment will require quite a bit of storage space.

Once you’ve answered the above questions, you should start to get a clear idea of the type of car that will suit your requirements. However, don’t jump to the conclusion that the search is complete even when you spot the vehicle that appeals to you. For instance, Motorparks currently has four equally appealing types of new Ford Focus available at the moment…

  1. There’s the standard new Ford Focus, which stands out for its unbelievable control and efficient set-up.
  2. The new Ford Focus Estate is the most appealing to those in the market for a spacious and stylish family car.
  3. Those aiming to catch the eye and put the thrill into driving wherever their journey takes them should seek out the new Ford Focus ST.
  4. If you don’t mind spending a bit more for a family-friendly car that is also exhilarating to drive, take a look at the new Ford Focus ST Estate.

Checklist 2: How much will your car cost you?

  • Of course, the first aspect of cost will be the price you will need to pay in order to actually acquire the vehicle. Fortunately, there’s multiple ways to finance buying a car today — take a look at this guide by The Money Advice Service to find the one most suitable to you.
  • Consider the estimated price of fuel, road tax, insurance, parking permits and use of any toll roads that you will have to factor in to get your new set of wheels from A to B. Struggling to add all of these up? This handy car cost calculator should help put your mind at ease.
  • If you’re opting for a brand-new car, how much will the servicing cost you for the first three years? The dealership where you purchase your vehicle should be able to answer this one.
  • Every car will need to go through a yearly MOT once it’s three years old, so this is a cost that simply cannot be ignored. Try to keep the cost down as much as possible by reading through these tips by MoneySavingExpert.com.

Tactics for speaking to a salesperson

By now, you should have a type of car in mind and have factored in all costs so that the vehicle matches your budget. The next step is to head to the dealership to try and negotiate a great deal.

Negotiation is key when you’re talking to a salesperson. As such, you should never let slip the top limit that you are prepared to pay for the car that has caught your eye. Instead, start by saying an amount that is below the lower limit that you’re prepared to pay and, if need be, work your way gradually up from there.

Also be patient. Adopt a friendly and polite manner throughout a conversation with a salesperson and don’t speak again once you’ve made an offer until they have had time to offer a response.

Most of all, don’t be afraid to walk away if the price you’re being offered doesn’t suit you. Even if you’ve been negotiating for a long time, at the end of the day it is your decision and you shouldn’t ever feel pressured to pay more than you’re comfortable with.

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5 Factors to Consider When Purchasing a New Car https://www.autogeeze.com/2016/01/5-factors-to-consider-when-purchasing-a-new-car/ Thu, 28 Jan 2016 23:47:08 +0000 http://www.autogeeze.com/?p=10145 buying-new-car

When it comes to purchasing a fresh set of wheels, whether a brand new car or a second-hand vehicle, there are many considerations to think about. Simply setting off to the local car dealership and picking one out is unlikely to result in you finding the perfect vehicle at the first attempt. Instead it is best you spend a bit of time researching to find a car that meets your needs in the following five areas.    

Type of Vehicle

The type of vehicle required will depend on your circumstances. For a professional living and working in the city an executive saloon or hatchback may be most appropriate, whereas those with families will likely be after something a bit larger. 4X4s are a popular choice for anyone living out in the sticks who regularly travel down country roads, while if you’ve got a caravan you’ll need a vehicle with a tow bar.

Running Costs

With the global economic crash people are more and more focused on cutting back on expenses wherever possible. Check the mpg of any cars you’re interested in as well as seeing how much it will cost to insure. In some cases buying a more expensive vehicle can work out cheaper in the long run if it’s more fuel efficient and cheaper to insure.

Energy Efficiency

More and more hybrid and electric vehicles are on the roads than ever before, and if you’re an eco-conscious driver there are plenty of green cars available. Even for those not ready to go fully green, seeking out a car with CO2 emissions below 100g/km means they are exempt from car tax, so it can be worth looking at such options.

Funding Options

Before even looking for a new car you should set a budget and have a good idea of how you will pay for the vehicle. Saving up is a great option but if you’re short on time and money there are other choices. Car leasing ensures you get a good, often brand new vehicle but you never actually own it. Using Everyday Loans for a car loan is another option and you will own the vehicle, as long as all repayments are made.

Vehicle History

When you’ve found a car, if it’s second-hand, then checking its history is a must. This might bring up additional expenses, such as the vehicle being in need of a new timing belt or other repair work in the near future. Consider these points and you should discover a great new car for your needs soon.

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One-Stop Guide to Car Finance Options https://www.autogeeze.com/2014/12/one-stop-guide-car-finance-options/ Tue, 02 Dec 2014 17:28:26 +0000 http://www.autogeeze.com/?p=10025 car-finance

Image: Justin Capolongo

 

Buying a new, or used, car can be something of a complicated task when you have cash flow problems. It’s something of a catch-22 situation. You need a car to get to work to earn money. Without a car, you cannot do this. But, you don’t have the money available to pay for the car. It’s the ultimate dilemma.

Of course, without advocating getting into debt, you don’t have to have a mountain of cash to buy a car. You can seek out a wide range of different finance options that may be suited to your personal circumstances.

When it comes to buying a car on finance, there is a wealth of options. Let’s take a look at which ones may be best for you.

Car Loans: What Gives?

A car loan can be the best way to finance your car. You may be able to secure this from your bank. You may be able to obtain this loan from your local dealership. As with any personal loan, the interest is measured by how much you borrow and the agreed term time. Car loans can run from 1 to 5 years. While it may be cheaper to seek out a loan over a longer term period, you will incur higher rates of interest. So, make sure that you are exploring all of your options. One of the most significant advantages is that you own a car when you drive off the forecourt. You just need to repay the loan over an agreed term time. But, this is not always the best deal. Forecourt deals can be attractive when there is a new car released. Typically, March and September are the best months to seek out a deal from your local car salesman.

Dealership Finance Options: What You Need to Know

Walk on to any forecourt within the UK, and you will see a wide range of finance options available on both new and used cars. This can be an attractive way to finance a car if you don’t have the cash available. www.carbase.biz has stated that this is an excellent way to secure finance if you cannot do so via your bank. Of course, you simply finance the car based on the advertised fee. This must be paid off over an agreed term time. Typically, term times are shorter via a dealership option. What is more, there are interest rates added to this. So, get a full sum of what you will be paying back to make sure that this is the right choice for you.

The 101 on HP and Leasing

Hire purchase or HP is where you pay a deposit for your vehicle. This is done via the agreed period. Typically, HP runs over 1 to 5 years. Much like a car loan, it is paid via a monthly transaction. Once you have paid over the term time, the car is yours. However, this may be subject to a balloon payment. Leasing works in a similar way. You pay a deposit and monthly instalments, but you then hand the car back at the end of the term. However, you can purchase a car. This will be subject to a fee at the end of the term.

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Getting a Car Loan https://www.autogeeze.com/2014/05/getting-car-loan/ Tue, 20 May 2014 02:24:16 +0000 http://www.autogeeze.com/?p=9873 car-loan-approvedWhat do you need to show a lender if you are going to apply for a loan? While different lenders are going to ask for different information, the general goal is to prove to the lender that you are a good bet to pay the money back after you get it.

The first thing that you want to do is prove that you have a steady income. If you don’t have a job, you may be able to get a loan if you are able to show that you have investment income or other sources of revenue that can be used to repay the loan.

Once you have proven that you have a steady income, you need to show that you don’t have too much other debt that may make it harder to repay the loan that you are applying for. For example, if you are applying for a mortgage, lenders don’t want to see a debt-to-income ratio of more than 55 percent.

Lenders such as Loan Mart are always available to people who need money fast to cover bills, fix a property, car loan or get a higher education. Although not everyone is going to get the same interest rate or other loan terms, it may be possible to find a way to construct a loan document that is easy for the borrower to repay.

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How to Buy Value When Looking at New Cars https://www.autogeeze.com/2013/10/buy-value-looking-new-cars/ Tue, 29 Oct 2013 11:15:53 +0000 http://www.autogeeze.com/?p=9607 Buying a new car

For many of us, the mere thought of visiting a car dealership is enough to make us want to keep that banged-out Punto. Whether it’s the hassle of the haggle or the hefty price tag that comes with changing cars, shopping for an new set of wheels can be a very unappealing prospect. But it doesn’t have to be a nightmare. Whether you’re buying a used BMW or a sparkly new Citroen, there are many ways to save money without compromising on quality.

Know Your Budget

Although many people will tell you that you should let the salesperson know what the monthly amount we want to spend is, but this is NOT TRUE. If you offer up that information freely, the dealer will likely try and push you towards (or beyond) that price which will only frustrate you and waste your time. If you’re looking to save money when buying a new car, keep your budget under your hat and you’ll have more power when it comes time to negotiating a price. If the dealer is pushy, emphasise your willingness to get a great deal and don’t give away how much you can afford to spend.

Do Your Research

Before you step onto a car lot, you should spend at least a month narrowing down exactly what you want, need and can afford in your next car purchase. You should know exact type and size of car you are looking for, and what it should cost you. Don’t be afraid to visit lots of different dealerships to help you weed out the best value for money, and the nicest sales people to deal with. Trying to save money on a new car can be tricky at best if you don’t know what that particular make and model is worth in the market at that time, and what a dealer has paid for it. There are tons of great motoring advice websites like vCars that will help you figure this out, so that you can make an informed decision when it comes to buying a new car. They offer unbiased car reviews, information on what add-ons actually cost the dealership and how much it will cost you to run. Doing your research will give you the upper hand when it comes time to buy, and offer an invaluable insight into what to expect from your negotiation.

Be Patient

One of the most important thing to remember when buying a new or used car is to keep your cool. If you seem panicked or desperate the dealer will see an easy win, and try to bump up the price. Make up your mind beforehand not to buy on your first trip to the dealership – no matter how good the deal is or how much you want the car. You should always be willing to walk away – if the salesman sees this, they will be more willing to communicate on your terms and offer the best deal. Remember, they have lot more experience of negotiation than you, so don’t think you can outsmart them if you don’t have the research to back it up. Playing it cool will help in the negotiation process, but also remember to be realistic, otherwise they may just let you go. Just be sure to take the time to buy on your terms and not the dealer’s, as it benefits you to avoid a hasty or rushed decision.

Before you go shopping for a used car, bear the above in mind, and ensure you know exactly what you want and how much you’re willing to pay for it.

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Top tips for spotting scams when buying cars online https://www.autogeeze.com/2013/10/top-tips-spotting-scams-buying-cars-online/ https://www.autogeeze.com/2013/10/top-tips-spotting-scams-buying-cars-online/#comments Thu, 03 Oct 2013 03:27:33 +0000 http://www.autogeeze.com/?p=9594 Buying A Car Online

Research from Google has shown that 74% of people in the UK now use the internet to find their next used car. While shopping around online is a great way to get the best possible price for the model of car that you want, it also exposes car buyers to a series of new risks. Here are some good ways to make sure that you aren’t ripped off when buying a car online:

1. Be extremely wary if the seller tells you that their car is in a crate and can’t be viewed. This is a common tactic employed by con artists, who copy the details of a car from a recent online advert, then put up a fake advert on a sales or listings site. You should always try to view the car before you buy.

2. It should concern you if the seller wants payment by anonymous wire transfer rather than by a traceable method such as credit card, cheque or an online payment site. Scammers often claim that their non-existent car is covered by some kind of vehicle protection policy that will refund your money if you don’t like the vehicle. Don’t be taken in – there’s no reason not to use a safer method to pay for your purchase.

3. Another form of fraud often found online is ‘cloning’. This involves changing the Vehicle Identification Number on the car for sale to match one from another car already on the road. Fraudsters may even have a stolen V5 and logbook to lend credibility to the vehicle’s new identity. Having a vehicle identity check performed will tell you if the VIN is from a stolen car or a Swiftcover Car Insurance write-off, and is a good way of guarding against this sort of scam.

4. Investigate the market. If you know how much a particular model usually goes for, then you will know when a car is listed for an implausibly rock bottom price. It’s also worth checking the seller’s history on the particular site to see if they have been getting positive feedback from buyers.

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Six Mistakes Most People Make When Buying Their First Car https://www.autogeeze.com/2013/09/six-mistakes-people-make-buying-first-car/ Wed, 18 Sep 2013 03:31:15 +0000 http://www.autogeeze.com/?p=9570

Six Mistakes Most People Make When Buying Their First Car

Buying a car can be an overwhelming experience, especially if it’s your first car. You’ll probably be tempted to walk into the dealership and buy the first cool-looking car you can afford. Purchasing the wrong car is a mistake that you are likely to regret for years, so do your research beforehand and know what you want and what you’re willing to pay before you visit any dealerships.

Mistake #1: Buying a Car that Doesn’t Suit Them

You need a car that will get you from one place to another safely. It’s important to write down everything you want and organize your list in order of priority. Make sure that every car you test drive meets all the criteria on your list of needs. You may also want to make a list of things you don’t want, as this will help you stand up to a salesperson who tries to push you to buy a car that doesn’t meet your needs.

Mistake #2: Not Researching Several Dealerships

Once you have decided which features are important to you, the next step is to search local dealerships online and find vehicles that fit your criteria. Compare cars from several dealerships to get a good idea of the vehicles offered by each one. It’s also smart to check out the value of every vehicle you are considering, so that you can make sure the price that the dealership is asking is reasonable for the model, year and mileage of the vehicle. It’s always a good idea to check the Kelley Blue Book for pricing and financing options.

Mistake #3: Overlooking Insurance Costs

The payment is only part of the cost of owning a vehicle. Fuel and auto insurance costs should also be considered when you’re deciding which car to buy. Most car insurance companies will give you a quote according to the make and model of the car you are looking at buying. Some cars cost way more to insure than others, so it’s best to get a quote before visiting the dealership for a test drive.

Mistake #4: Taking an Insufficient Test Drive

Test driving vehicles is one of the most important parts of the car buying process. It’s best to subject the car to as many different road conditions as possible during the test drive, even if it ends up taking longer than you had planned. A car that drives great on the freeway may not do well on curvy country roads that are not well-maintained. The main purpose of the test drive is for you to figure out as much as possible about the mechanical condition of the vehicle before making a purchase.

Mistake #5: Not Sticking to Your Budget

A car is a major purchase, and you are likely to regret it later if you allow the salesperson to talk you into a car that doesn’t fit into your budget. Take the estimated insurance amount into consideration when you’re figuring out a car budget, as well as the car payment amount and a small amount each month to set aside for repairs and maintenance. The last thing you need is a car payment that takes up so much of your income that you cannot afford to maintain it properly.

Mistake #6: Failing to Prearrange Financing

The dealership will be happy to offer you financing options, but they are unlikely to be as favorable to you as the loan you can get from your credit union or bank. Most banks will give you a preapproval letter that you can take with you to the dealership. If the dealership happens to offer you better financing options than your bank, you can accept their financing even if you have already talked to your bank about a vehicle loan.

The main thing to remember is that you will be the one paying the loan payment and driving the car, so don’t let the salesperson pressure you into something you aren’t comfortable with. Your first car is likely to be one that you will remember forever, and avoiding these mistakes will help you have a positive car buying experience..

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