Buying a New Car? 5 Things You Should Know

If you are in the market for a vehicle, you have many things to consider: money matters, safety, utility and comfort. As you conduct your automobile search, several areas may factor into your decision.

Selling Price

This is perhaps the easiest factor to compare as you begin your search. If you have a lump sum of money and plan to pay for your vehicle upfront, you should be able to negotiate with sellers and get a better deal than advertised. Dealers tend to have wiggle room built into their sticker prices; it cannot hurt to ask.

Loan Details

When paying cash, the most important financial consideration is selling price. However, if you plan to finance your vehicle, the loan details may make the biggest difference. Lending companies typically offer buyers different auto loan rates based on the vehicle, total loan amount and the length of the loan.

Another factor that affects loan rates is your credit score. Buyers with better credit ratings tend to command lower rates. If you plan to shop for an auto within the next year, check your credit score now; if it could use improvement, take the necessary steps before you shop for a car.

Desirable Features

One reason there are so many makes and models is that drivers value different things. You need to decide which features mean the most to you.

Safety –Some safety features are almost universal, such as air bags and anti-lock brakes. Other features are exclusive to certain vehicles and trim packages. Examples include blind-spot warning, backup cameras and adaptive cruise control. Certain manufacturers are known for their emphasis on safety, which can include superior maneuverability. The Insurance Institute for Highway Safety compares vehicles in two areas: how well they withstand crashes and how well they avoid them. You can look up safety ratings on their website.

Updated technology - One advantage new cars have over used is that they are often equipped with the latest technology, comforts and conveniences. Advanced information and entertainment systems work seamlessly with your smartphone to play music, enable phone calls and get you where you are going.

Personal utility – How will you use your vehicle? If you have a lengthy daily commute and spend weekends driving for a food delivery service, fuel efficiency should top your list of priorities. If you regularly chauffeur your six children around town, a minivan may be in order. If you frequently haul large items or tow a trailer, look at pickup trucks.

Fancy extras – Some features seem useless to your partner, neighbor or best friend — yet they are important to you. These may include a sunroof, heated and cooled seats, and keyless entry. They may not be deal-breakers, but do not hesitate to look for cars with these extras. If you drive a lot, these little luxuries can dramatically improve your day.

Remember that each style of automobile has its advantages and drawbacks. The key is knowing yourself and getting the vehicle that best serves your needs.

Maintenance and Insurance

Operating an auto involves more than just filling the gas tank. You need to change the oil regularly and get tuneups following the manufacturer’s suggestions. Eventually you will need to replace the tires. These expenses can add up, and costs vary widely. Luxury cars and many imports tend to be more costly overall.

Insurance rates are also quite variable. Some vehicles are relatively affordable to insure, while others are much more expensive. Cost-conscious consumers should research maintenance, repair and insurance pricing before choosing a vehicle.

Depreciation

New cars may drop in value significantly as soon they are driven off the dealership lot. However, not all cars depreciate at the same rate. Indeed, there is a vast difference from one car to the next. You may be planning to drive your next vehicle for a decade or more; in that case, depreciation is a moot point. However, if you plan to own your auto for just a few years, resale value matters.

There is an amazing variety of new vehicles available. If you look carefully, you can find the perfect fit for you.