Buying a brand new vehicle these days is really outrageous. Prices have skyrocketed and it’s really daunting when you think of how many years of your life you have to work to earn enough money to pay for one. Below are some things you can consider if you are planning on buying a brand new vehicle.
Extended Warranty
The finance manager will most likely try to sell you an extended warranty. When we spoke to our friend and long-time owner of a mechanic shop, he said that if they are charging more than 5% of the vehicle’s cost, then it’s not worth it. He also emphasized that insurance companies want to make a profit. Just keep these things in mind when deciding whether or not to get the extended warranty.
Interest Rate
If you are planning on financing your purchase, do your homework before test driving vehicles. The interest rate will have a significant impact on the vehicle’s true cost so it’s best to get the lowest rate possible. Sometimes dealerships provide incentives and lower interest rates to attract buyers, so watch for those. Interest rates are lower on brand new vehicles than on used ones, but nevertheless, interest expenses jack up your cost very quickly if the rates are high.
Emotions
Try not to let your emotions get in the way and cloud your better judgement when you shop for a new vehicle. It’s easy to get swept away by the idea of owning a certain vehicle, but stop yourself from making a bad decision. Bring someone along with a clear head, and don’t get sucked in by the salesperson’s tactics.
Research
Be an educated consumer. Narrow your search down to the top 3 potentital vehicles you want to test drive. Understand what you want, and more importantly, what you don’t want in a new vehicle. Then, once you have a good understanding of your options, take a test drive.
By taking these things into consideration, you will be better equipped to buy a new vehicle.
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