Purchasing a Vehicle? Do Your Homework!

Posted on January 31 2007

It can be a very exciting time when you make that last car payment and finally own that vehicle you’ve been paying for over the last four or five years. Unfortunately that excitement can end abruptly when that automobile breaks down and you find yourself right back at the beginning again. The task of buying a new vehicle can become very overwhelming. Here are a few simple tips on how to make the process a little more enjoyable.

Review Your Budget- One of the most important things while shopping for a new vehicle is knowing what you can afford. Review your budget. Based on your reviewed budget it is important to establish a comfortable monthly payment that you can afford. It is also important to have an idea the timeframe in which you want to stretch your loan. If you do not have these guidelines in place you may walk out of the car dealership with a payment you truly cannot afford.

Do Your Homework- Once you’ve figured out a price range, begin your homework. Find vehicles that fit into your budget and research them. There are many useful websites that can provide you with excellent information. Determine what is important to you in your new vehicle (i.e. gas mileage, durability, brand, etc). After that it’s time to do some test driving.

Shop for a Loan- When first visiting with a salesman about the possibility of purchasing a vehicle be sure to make it clear that you are interested not only in the monthly payment amount but also more importantly the interest rate. If they will not offer you a competitive fair rate you may want to call around to see what others may offer. These days, car salespersons are very heavy into pushing payment amount vs. interest rates. Falling into this trap could cost you thousands.

Purchasing a vehicle can be one of two things; a very educational and enjoyable experience or a buyer’s remorse story. If you begin to feel as though you would like to walk away from a “deal”, do it! Another “deal” will come along. Remember, it’s just a car.

Jeral Croaker -FLCS Certified Credit Counselor