5 key points one should keep in mind before buying a car

Car buying can be a challenge even if your finances are in order. In order to avoid any last-minute chaos, there are steps you can take at home so that when you get to the car lot you and the salesman can work together to come up with your new transportation solution such as buying a car from the best parallel importer in Singapore.

Here are 5 key things you should think about before you head to the dealership to purchase your car.

Research Before Arrival

If you have access to the internet, look around on the web prior to heading into a dealership. The dealership can be overwhelming, and it’s not a place you want to head into unprepared, or you could find yourself frustrated with the entire process. Researching ahead also gives you a chance to have an idea of what type of car you want so you do don’t find yourself letting the salesman push you into any particular direction. You can narrow your options down to body style, price, make, model, and even colour all on your own. Knowing what you want can shave a significant amount of time off of the purchasing experience.

Car Insurance

Certain circumstances will require you to have auto insurance. If you finance your car your lien holder will require you to have full coverage. Full coverage consists of liability, collision, and comprehensive insurance. Your state may not require you to have full coverage, but there may be minimum insurance limits and physical damage coverage you must have. Consider your insurance requirements prior to purchasing your vehicle so you can be ready to pay this expense along with your car payment.

Feel free to shop around for your car insurance as some rates are lower than others. Don’t forget to think about any professional associations you may have that could get you some nice discounts. Some providers also offer a multiple vehicle discount. You might also want to consider adding on GAP insurance so you will be protected in the event of an accident that ruins your car.

Depreciation

Cars are said to lose over 10% of their value within the first month you drive off the lot. Your car’s price value will continue to decrease over time unless you invest in some sort of secure vehicle storage. If you’ve ever tried to trade in a car you might have heard of owing more on your car than the vehicle is worth. That’s how this happens because the longer you keep the car the less it will be worth. If you want a vehicle that will hold its value, then you’ll need to look into trucks, SUVs, or trusted brands that are said to hold their value. If you already own you should research the potential trade-in value so you’ll know what to expect when you arrive at the dealership.

Cost of Car

Take a look at your finances and figure out how much car you really can afford. This saves time on the car lot. If you’re buying car cash, then you still have to factor in taxes, tag, fees, and insurance costs. You might want to find a car that costs less than your budgeted amount so you can still cover any additional expenses. If you have an idea of how much you can pay for your car each month, you can calculate up to the amount you could potentially finance before you talk to the salesman. This step will also save you time in the finance department so they don’t come up with a number that’s too far away from your affordable amount.

Credit Score

If you plan to finance your car or if you think you would consider it, then it’s a good idea to check your credit score before you arrive to make a purchase. Knowing what’s on your credit report and your score can allow you to work out a really good deal for yourself. It can be discouraging to find your favourite car and then sit down with the finance department only to learn that your credit is too poor to get approved for financing. Figuring out what’s on your credit report ahead of time gives you a chance to clear up any discrepancies and gather your down payment before you go and get a hard inquiry.

Conclusion

Now that you have several things to consider prior to purchasing your first car you are ready to do your homework. Make sure your finances are in order by organizing your budget. Check the value of your vehicle so you know what the trade-in value is and consider the size of your down payment. Remember to check your credit if you plan to finance your vehicle so you won’t be surprised when you either can’t get the financing you expected or if you wind up with a higher interest rate. Don’t forget your car insurance. Having proper coverage is very important when you get ready to purchase your car. Before you go, check out the 2020 kia forte.