Are you shopping for a new car right now? Since you’re here, the answer is probably yes.
One of the first questions you should ask yourself is, “What kind of car do I want to buy?” A second question would be, “What kind of car can I afford?” We can help answer these questions to narrow down your choices before you go to the dealership.
To maximize your car-buying experience, check out our pros and cons list.
There is nothing better than being the first to use a brand new car, truck, or SUV. A brand new vehicle not only has that “new car smell,” but it also has few to no miles on it and is equipped with the latest technology! Plus, did you know that you can save money on financing a new car? Interest rates are typically lower for a new car because lenders know the value of it and also know that the borrower will pay back the loan. Manufacturers often offer low interest rates combined with a cash rebate or even 0% interest for a specified period of time, saving you even more money in the long run.
Although financing a new vehicle may save you money on interest, auto insurance and sales tax will still be costly. The sales tax usually isn’t included in the advertised price, so you might be surprised when you see the final bill. You can learn what your local sales tax rate is on your state’s Department of Revenue website. The other pricey component to a new car is auto insurance. For a new vehicle, a lender will typically require collision, comprehensive, and gap insurance. These insurance packages can add up quickly and make your new car more expensive than you initially thought it would be.
- Cheaper to finance (low interest rate)
- Manufacturer warranty
- Little to no miles
- Find the exact model and trim you’re looking for
- Finance and special offers through manufacturer
- New technology
- No waiting for the title
- Faster depreciation rate
- Expensive sales tax and auto insurance
The car shopping process can be both fun and frustrating at the same time. There are so many choices to pick from, it’s hard to decide where to start. Buying a new vehicle may not be the best option for you, so tune in next week when we discuss the pros and cons of buying a used car instead.