10 Things to Keep in Mind Before Purchasing a New Car

Determine What Car Fits Your Needs

Consider the type of car you need based on factors like safety, gas mileage, and usage (commuting, camping, etc.) Research different makes and models to find the best fit for your needs.

Get Your Credit Report

Check your credit score to understand your financing options and potentially negotiate a lower interest rate on an auto loan. Reviewing your credit report helps identify any negative factors affecting your score.

Review Your Loan Options

Explore auto loan rates at local credit unions or banks to compare with other options. Being pre-approved for a loan before visiting a dealership can save time and give you an advantage in negotiations.

Discover Your Car’s Trade-In Value

Research your current car's trade-in value using resources like Kelley Blue Book to be well-prepared for negotiations at the dealership. Selling your vehicle yourself might yield a higher return than trading it in.

Determine Your Desired Payment

Calculate your monthly payment based on the loan amount, annual percentage rate (APR), and term. Consider making a down payment to reduce the loan amount and lower monthly payments.

Decide Whether to Buy a New or Used Car

Understand the advantages and disadvantages of buying new versus used cars before making a decision.

Learn About the Car’s History

Look into the car's history using services like CARFAX and AutoCheck to uncover information about past owners, accidents, and repairs. Consider having a mechanic inspect the car before purchase for added peace of mind.

Consider Whether You Would Like to Buy or Lease

Evaluate whether buying or leasing aligns better with your needs and financial situation.

Test Drive Multiple Cars

Before making a final decision, test drive several cars to get a feel for how they handle, their comfort level, and overall performance. This hands-on experience can help you narrow down your choices and find the best fit for you.

Research Maintenance Costs and Resale Value

Look into the expected maintenance costs for the car you are considering purchasing. Additionally, check the resale value of the vehicle to understand how well it holds its value over time. This information can help you make a more informed decision about the long-term costs of owning the car.