The Four Factors of Buying a Car
The major things to keep in mind when buying a new or used car
Buying a new or used car can be exciting but stressful and most car buyers feel both. It exciting if you know what it entails to buy a vehicle, it can be stressful if you have no clue where to start.
When you break down buying a vehicle there are a number of factors to consider. Here are some of the important factors we want to discuss.
Your budget meaning buying new or used
Buying a new car can be pretty expensive. Used cars can get a little pricey too but used can be a bit cheaper. When you’re buying a new car dealership says to save up 20% for the down payment or you could go with at least a $1,000 down payment for a new car.
If you can’t save up to 20% most car buyers will look at a less expensive vehicle or go down a model or even look at used cars as they can be a couple of grand cheaper.
There are both pros and cons of buying new or used. You can save a lot of money on a used car but most car lots don’t have warranties with used cars. Car consumers usually have fewer repairs on a newer car but you may spend a pretty penny on a new car.
Leasing
Maybe a good option if you want to get a car every few years. But it can be expensive to break a lease once you’re in one. A dealer can help figure out if leasing is the way to go for you. Basically, you are paying the bank that bought the car from the car dealership.
Financing
There needs to be an auto financing plan in the works most people don’t buy a car right out. Unless you are interested in a used car. Know that the dealership isn’t the only place you can get financing through. There are credit unions, banks, and buy here pay here car dealers that can finance. But also understand there are other factors that go into financing a car.
Credit
It can have a large factor in buying or leasing a car. Your credit score ranges from 300-850. A credit score that is about 710 or higher will see better auto financing options. A credit score of 640 or lower will see worse financing available and a credit score of 550 may not see any financing available to them for a vehicle.
Safety
Most car buyers may turn a blind eye to this because of pricing but safety is important when you have vehicles in mind. That’s why we encourage people to look at safety ratings before purchasing any vehicles. The braking system is a large focus as it protects the people in the car and the people outside of the car.
Every car needs to have routine safety checks so when you purchase a vehicle it needs to have maintenance done on it every thousand miles or so. Usually, 5K-10K for oil changes and tire rotations your air filter needs to be changed also.
Insurance
It needs to be on the vehicle in all states to drive on the roads. It honestly protects you and the car if ever in an auto accident. Rates may change with the vehicle you buy and even your credit history or vehicle history. So we recommend shopping insurance rates.
Your financial situation may be the biggest reason you look at buying new or used or even leasing. Kind in mind your financial situation before buying a car, know the pros and cons.
