When you're purchasing a new vehicle, it's easy to get caught up in that new car smell and fun new technology. Let's face it, the new shiny cars are fun to look at and drive. However, when you have a plan in place, that will help you make the right decision that fits your lifestyle. That's why we've compiled a list of do's and don'ts to help you through this process.
If you want to find the ideal vehicle for you, you'll want to begin by selecting the type of vehicle that best suits your lifestyle; convertible, minivan, sedan, coupe, compact car, etc.
Once you've decided on the type of vehicle you want, make a list of what's most important to you. Research various models and makes that give you all the amenities and features that you want.
Creating a budget can be the hardest part of the whole process. You may have found the vehicle that fits you perfectly, but finding one that you can afford can sometimes be hard. When buying a new vehicle, it's recommended that you put about 20 percent down, limit the term to no more than 60 months and keep your monthly payment below 10 percent of your income. Plus, you'll want to make sure you consider the cost of maintenance. Some cars cost more than others.
Negative equity can be a huge burden. The balance of your old loan may be consolidated into the new car's loan amount, meaning you could be paying the debt of two cars in one, big loan. Get ahead by researching and knowing in advance what your trade may be worth.
Take your time with the test-drive to make sure you actually enjoy the car instead of just enjoying the feeling of driving a new car. Ask questions, play with the various features and look around the vehicle. Make sure the car has enough space for everything you need.