Buying a New Car: Top 5 Factors to Consider

November 15th, 2019 by

When buying a new car, there are many factors to consider. The car needs to fulfill your wants, needs, and lifestyle demands. Also, you’ll want to consider the resale value, costs of ownership, desired features, incentive and trade-in options, and pricing and financing. Make sure you get the best value for your money by considering the following five factors.

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Residual Value

The residual, or resale value of a car is the value of the vehicle as it depreciates with time. Some buyers may purchase a vehicle on sale or with special dealer rebates. However, these incentives could cause a vehicle’s value to depreciate faster.

On the other hand, some of the best-selling cars can also depreciate quickly in value if there are too many of them on the market. It pays to do some research beforehand and determine which cars have strong resale values. This step could potentially save you thousands in the long run.

Cost of Ownership

When buying a new car, it’s vital to consider additional ownership costs. The price of insurance, fuel, and maintenance can add up over the years. Car expenses shouldn’t total more than 15% to 20% of your total monthly budget.

Before purchasing a new car, check with your insurance company to find out how much your rates will change. Premiums may increase, depending on the make and model of the vehicle. Typically, the more expensive a car is, the more it will cost to insure.

Remember that fuel-efficient cars can save significant money in the long-term. Comparing fuel economy and picking an efficient vehicle can reduce your costs of ownership. Similarly, maintenance costs also come into play. Consider the price and availability of replacement parts, as well as consumer reports.

Features and Technology

One of the most notable factors in buying a new car may be the safety devices, features, and technology. Buyers should choose vehicles with features that meet their needs but avoid extra features are unnecessary. New cars often come with advanced safety features such as adaptive headlights, automatic parking, and backup cameras. This type of technology can be very beneficial. However, make sure not to pay for technology and features that you will not use.

Prospective buyers should take more than one test drive to make sure the car is a right fit. Check for driving comfort, blind spot view, and the seating configuration. Legroom, storage space, and other amenities are also important factors that can have a significant impact on your decision.

Incentives and Trade-ins

The best time to buy a new car is when dealers clear out inventory at the end of the year to make room for new models. Usually, the beginning of October is the perfect time to purchase a car before the new model comes out. Additionally, prospective buyers should keep their eyes open for low-interest loans and other rebates near the end of the model year.

Car owners may make a better deal when selling their old car on their own. However, a trade-in at the dealership could save you valuable time and energy. Collect offers from different dealerships to get the best price for your old vehicle.

Price and Financing

To get the best price for a new car, potential buyers will have to do their research. Car dealerships want to establish lasting relationships with their customers. By showing up with price comparisons, strict budget guidelines, and a precise idea of what you’re looking for, you can effectively negotiate a reasonable price.

If you’re able to pay in cash, great! However, most prospective buyers will need a loan or financing. Check your credit history and score beforehand to get a better idea of your financing options.

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Many car dealerships make the most profit from their financing department. As a potential buyer, it can be to your best advantage to get your own financing. Your local bank might be able to beat the rates the car dealership is offering. However, manufacturers often have the best promotions with interest starting at 0%. If you have any questions, or want to come check out some of our great offers & options for buying a new car- contact us here at Bayshore.

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