The 3 Things You Need to Know Before You Buy a New Car
There are many things to consider before purchasing ANY car, but a NEW car
might spark particular questions. There are pros and cons to buying new cars,
just as there are pros and cons to buying used cars. After you’ve considered the personal aspects of which car to buy, move on to the
less subjective parts of the process:
Most cars depreciate at about 15% per year. With new cars, there is a 20%
depreciation rate as soon as you drive off the lot. You want to consider this
before you decide to buy a new car, especially if you can’t put much money down
as a down payment. Chances are you’ll be upside down on your car loan almost
immediately if you’re financing the entire cost.
Also, consider the true cost to own the car you’re eyeing. These costs include
insurance, fuel, maintenance, and more. Maintenance costs vary by manufacturer
and model. Do your research—some manufacturers have better reputations than
others. Some new cars even come with “free” maintenance plans for the first
couple of years or for a certain number of miles.
3. How much can you afford?
Don’t guide yourself solely by what the dealership is willing to lend you. And,
don’t be blindsided by an attractive low monthly payment—oftentimes tied to
a super-long loan term. Consider all aspects of financing—the total amount you
are going to end up paying for that vehicle when it’s all said and done. That’s
Visit us before you even step on the lot. As a not-for-profit financial cooperative,
we can approve you for an auto loan that fits your circumstances and your
budget. We won’t put you into a loan you can’t afford and we’re happy to explain
everything to you away from the high-pressure of the dealership. Plus, you’ll
have the option to get pre-approved for better budgeting and bargaining power.
LOOKING FOR A NEW CAR? START HERE
(and see our current promotion)!