Buying a new car can be a confusing process without the right information and know-how.
Use these tips to help you purchase a brand new car!
STEP 1: Find Your Budget
You must know what kind of car you can afford before you physically (or cybernetically) start looking for a car. What can you afford as a down payment? What about monthly payments? While a Tesla is a great car, it falls outside the budget of most people, so having an idea of what you can spend will only save you time and money. (Of course, if it is within your budget, then by all means!)
STEP 2: Get Price Information
Once you have your budget and a few cars lined up, it’s time to find the price information. There are three things you need to know about price:
(i) Sticker price – The price the dealer wants you to pay for the car–usually found on a huge sticker on the windshield. Never pay sticker price.
(ii) Invoice price – This is the price the dealer paid the manufacturer for the car.
(iii) True market value – The true price for the car and the price you should pay when talking with the salesperson.
STEP 3: Finance Your Car
Most people do not pay the full cost at once. They put down a down payment, and then make monthly payments. The average down payment on a five-year loan is $4,104 with an interest rate of 1.64 percent, which leads to a monthly payment of around $400.
STEP 4: Test Drive your Car
Before you sign on the dotted line and bind yourself to a contract, you should know if the car you want is actually the car you want. Always test drive your car to see if it is comfortable and feels right. If it doesn’t, you are better off going with another car rather than sitting in an uncomfortable car until your loan is paid off.
New or old, your car needs to be insured. Contact Risk Management LLC in Brookfield, Wisconsin for all of your auto insurance needs.
