The prospect of getting a new vehicle can be an exciting one. The thought of that new car smell coupled with the feeling of confidently driving down the road in a sharp-looking ride is a great one. However, before you make your purchase there are some dos and don’ts of researching that you need to know.
Do Get a Loan Preapproval
Before you commit to buying any car, it’s a good idea to first get an auto loan preapproval. In general, you can typically get a lower interest rate when you opt to get financing through your local bank over your dealership. Do yourself a favor and have a preapproval ready when you walk into the dealership so that you can compare the dealership financing to your preapproval to know your best financing offer.
Don’t Skimp on the Test Drive
With the ability to buy a vehicle online these days, it’s very easy to forget about the traditional test drive. You may love a vehicle and its price as a result of all your car buying research. However, you may not notice that you simply don’t like driving in the vehicle until you test drive it. The problem may be that the windshield is at an odd angle, or you feel as if you’re sitting too far down in the car. All these little annoyances are something you’ll have to deal with if you skip that simple test drive.
Do Look for Recalls
When you’ve narrowed down your search to only a few vehicle model options, then it’s time to look for potential recalls. Look at recalls for the year range of vehicles that you’re potentially thinking about getting, as well as previous year ranges. Sometimes, a vehicle model will have a repeat issue over multiple model years, which can be a big red flag when it comes to investing in a newer model year.
Don’t Pay Sticker Price
If you’ve done your proper research and have received preapproval from your local bank, you may be ready to just accept the sticker price listed on a vehicle. However, this isn’t a good idea. Dealerships put a high sticker price on a vehicle so that they have room for future price negotiation. Take your time and negotiate the price to get the best overall cost.
Do Check Insurance Premiums
Knowing how much insurance is going to be for a new car is a must so that you can properly prepare your budget. Remember that your new car budget should include your monthly auto loan payment, insurance premium, fuel costs, registration fees, and maintenance costs. Now is the perfect time to shop around with different car insurance companies to determine which one best fits your needs and budget.
Don’t Forget to Check the Vehicle History Report
When you narrow down your options to a handful of vehicles, consider getting the history reports on all of them. This report will showcase valuable information, such as the vehicle’s accident history and any recalls. Think of this history report as a final evaluation of that potential vehicle so you can catch any red flags before you invest your hard-earned money in it. This isn’t necessary for new vehicles but is a vital step for used vehicles.
