5 More Keys to Car Shopping
Unlock the Mystery to Buying the Right Ride – Part 2
What Can You Afford?
Let your budget do the driving. Spend too much and it could end up costing you even more.
Factors to consider:
- Overspending
- Repossession
- Late fees
- Debt collection
- Reputation
- Credit rating
Sell or Trade Your Vehicle?
Trading your vehicle at the dealership may be quick and easy, but it may not be painless. Selling your own car can get you more dollars, but requires patience and good judgment.
Leasing vs. Buying
You are a candidate for leasing if you prefer a new car every few years, drive limited miles and/or can write off your lease as a business expense.
Leasing:
- Only pay sales tax on monthly payments
- At lease end, return or purchase for depreciated value
- Better for short-term ownership
Buying:
- Pay sales tax on the total value of the car
- Can be sold for its depreciated value
- Better for long-term ownership
Don’t Forget the Extras
Financing:
Shop for the lowest-interest car loan. But if your credit rating is less than perfect, don’t overlook deals from specialized providers such as RoadLoans.com.
Warranties:
An extended service contract from a manufacturer usually is your best bet.
Insurance Rates:
A high-performance, high-power or specialty vehicle will cost you more.
Consider Your Buying Options
- Trusted local dealer that offers the brand you’re seeking is a great place to start.
- Direct-buying sites work as brokers and complete the entire transaction with the dealer.
- Dealer-referral buying sites work with dealers who are committed to their internet-based customers, know how to respond quickly and are willing to negotiate via email.
- Manufacturer sites’ referral services typically will connect you with local dealers.
