You’re driving around in an old 1990s 2-door sedan and looking to upgrade to something more modern for your liking. After an online search, and a countless number of car videos you binged on YouTube, you’re ready to take the plunge and buy a new car. But you hesitate because you don’t know how to get the best deal on a new car.
In fact, a recent credit check shows your score is nothing more than a joke. Here’s everything you need to know to get the best deal on a new car, even if your credit sucks.
Determine Your Car of Choice
Pick the car you truly want. Sounds simple enough, right? Wrong! Everyone tends to be a little superfluous when it comes to picking out cars. Potential buyers tend to gravitate towards cars that are unrealistic or too expensive.
For instance, the sports car convertible speaks to your inner speed demon but the monthly payments, maintenance, insurance, and general upkeep might be too costly. According to NPR, when picking a car, try to leave your emotions out of the equation. A salesman will use your emotional blindness to stick you with a bad deal.
Instead, go for a car that you realistically see yourself driving to and from work, the grocery store, friends’ homes, and any other place to which you’ll be driving. You don’t need an 800-horsepower racing powerhouse to run errands.
Do Online Research
Shopping for a car isn’t just about seeing which cars are available on the lot in a dealership. Search online for your ideal, practical car. Remember, think about how you’ll be using this car on a daily basis. Research and compare models and manufacturers with one another.
You aren’t just buying a car, you have to account for taxes, monthly payments for financing, and insurance coverage – which tends to vary based on the make, model, and year of the car. Research to find the car’s fuel efficiency, safety rating, and reviews from owners to get an understanding of the car you’re purchasing.
Also, take your time when buying a car. It may take days or even weeks to find the right car for the right price. When you are ready to take that plunge, be sure you’re financially able to do so.
How To Get The Best Deal On A New Car
Be sure to check your credit score online before buying a car. Having great credit – prime or superprime scores – means having almost no issues with lenders. Having bad credit – prime and subprime scores – you might think your chances of driving off the lot is a far cry. It’s actually not.
There are lenders who will approve those with subprime credit scores for auto loans. Getting a car loan is almost exactly like getting a loan for a motorcycle.
Save For A Large Down Payment
You might find a lender and get preapproval for a loan but you almost always want to give a good down payment. Paying a large percentage of the cost of the car upfront will reduce monthly payments and may shorten the timeline of the loan. It also shows that you’re less of a risk to lenders, which helps with loan approvals.
Ask Yourself: Do You Really Need A New Car?
The answer is almost always no. Some of the richest people in the world say you shouldn’t buy a new car. Suze Orman says if you do decide to buy a new car, make sure you pay off the loan in three years. If you have bad credit, buying a used car may be a better option.
Buying a used or new car for your everyday needs is essential. Now that you know how to get the best deal on a new car, contact us to get more information on a loan today.