Buying a brand-new car is quite the milestone, but there are a few things you need to know before you go to the dealer and make a costly error.
Here are a few things you must know about buying a new car that will give you all the info you need.
Step I: FIND OUT HOW MUCH CAR YOU CAN AFFORD
Buying a new car typically means paying a down payment and monthly dues. You have to know how much you can pay monthly without straining your life. Once you know that, you can figure out what cars meet your financial requirement.
Step II: FINANCE YOUR CAR
When you buy a new car, you are expected to make a down payment and then pay monthly premiums at a certain interest rate. The average down payment on a five-year loan is $4,104. The average interest rate is 1.64 percent with a monthly payment for three years.
Step III: KNOW ABOUT PRICING
- Sticker Price: This is the price that the dealer would like you to pay for the car–the price on the sticker on the windshield you might see when you walk into the dealer lot. Never pay sticker price.
- Invoice Price: This is what the dealer paid the manufacturer for the car.
- True Market Price: This is the price at which you can and should get the car after negotiating.
Step IV: TEST-DRIVE THE CAR
Before you sign the dotted line and commit yourself to a five-year contract, always make sure to test-drive the car. You may think you want a certain car until you get behind the wheel and realize that it is rather uncomfortable to drive. Always test-drive the car.