Car shopping is always a mixture of excitement and slight intimidation. Today, the average shopper spends 40 hours researching vehicles online before they even look at one in person. This knowledge combined with the availability of information on pricing has improved the shopping experience, as there is now a level of transparency never before seen in the auto industry. Despite this transparency, a vehicle is still a big purchase that can be unnerving and can vary depending on whether you are looking at financing a new vehicle, pre-owned or leasing.
When buying new, there are a few things to keep in mind. First, there are wonderful options available today for financing, so be sure to explore what the market has to offer. Secondly, capitalize on model year-end savings. Now is the time to buy 2017. Thirdly, be open to financing through the dealership. Dealers finance millions of dollars every year giving them the ability to get the best rates possible. Know what the rate your bank or credit union will give you and give the Dealer a chance, you may be pleasantly surprised – either way, you win.
If you like to change your ride every few years, lease it. When leasing, the vehicle will always be under warranty, reducing repair and maintenance costs. Leasing is also a great way to have a set budget. You know exactly what you will be spending each month and will not need to have a contingency fund for repairs. when purchasing, your expenses are less fixed and by the time you come close to paying a vehicle off. You will also have to account for maintenance on top of your set monthly payments as, more often than not, there will no longer be any factory warranty.
If leasing just isn’t for you, or if you prefer to hang on to your vehicles, buying pre-owned is a great way to get the car you want and maximize your dollar value. Similar to new cars, be sure to consider all your money options for financing.
Buying a certified pre-owned (CPO) vehicle can be a good purchase as this means the vehicle has gone through extra safety inspections. Often these vehicles will also have extended warranties applied by the manufacturer. This does come at an added cost, so take the time to see what comes with your CPO to ensure it’s the one for you. When buying pre-owned be sure to take advantage of the vehicle’s history report. You can get them online and from the dealer, so you can be well informed when making your choice.
Regardless of whether you’re financing or leasing, a new vehicle should ultimately improve your life through added safety and convenience, so take the time to make sure you’ve found a vehicle that will meet your needs in the years to come.