Hey Gems,
I recently just got a new car and it honestly was one of the hardest decisions I’ve had to make this far. It took me about a year and eight months to make a decision and muster up to sign on the line. I mean this isn’t some decision you can make randomly. A number of factors have to be put into this decision. Hopefully, some of the tips I share with you can assist you in making a decision.
1. Lease or Purchase
I have researched these options up to 10 times and it really boils down to what the driver wants. In my opinion, there really isn’t a better option because you are still going to have a depreciating asset to your name.
Lease
Don’t put down too much upfront! The car will have a set amount that it will be valued at the end of your lease. The car has a set value at the end of your lease term but it depends on how much you put down and the length of your lease term.
Most consumers don’t know that when you lease a car, at the end of your lease term you are given two options. One is to own the car by buying it out or trade it in to get a different car. What I thought was pretty cool is that if you lease your car and a rock hits your car, the value of your car doesn’t down right decline. Remember I said, your car has a set value at the end of the lease term.
Purchase
The more money you put down upfront the cheaper your payments.
2. Price
Price for my vehicle was a very huge and defining factor for me. I didn’t want a car that sucked me dry of all my income. Something a good colleague of mine told me was to NEVER purchase a car that is worth more than your annual income. I mean that makes perfect sense. You want to be able to afford the car you’re going to own and you don’t want to become that person living paycheck to paycheck.
The sales associate is going to try and get you to buy the listed price. NEVER BUY THE LISTED PRICE! Do your research on the car before you go to sign. Kelley Blue Book is a deal breaker. Dealerships won’t sell over the price found on the website. Have the specs on the car listed out. See what other dealerships are charging for the same car. Also, don’t be afraid to bargain. I went in knowing how much the car was listed as and how low I wanted to bring that price down. You want to also know how much you will spend a month if you lease your car. Don’t settle on a price. Bargain till you can’t go any further.
3. Features
If this is not your first time driving a car then you know what you look for in a car. It’s like buying a cake on your 20th birthday. You have had multiple opportunities to taste different types of cakes. So when it come to your own birthday cake you know exactly what you want yours to look and taste like.
For me, I made a list of features I absolutely had to have in my car. This was mainly based on what I didn’t have in my current car. Then I created a ‘Nice to Have’ list, meaning I wouldn’t be bothered if the car didn’t come with the ‘Nice to Have’ features.
Have to Have
- Reverse Camera
- AUX Input
- Bluetooth Enabled
- Sunroof
- Seat Warmer
- Graphite exterior Color
- Black Interior
- Dark/Black Rims
- GPS
Nice To Have
- Apple CarPlay
- Push to Start
- Dual Sunroof
- Steering Wheel Warmer
4. Test Drive
Since my list of potential cars was really long, I had to make sure I test drove each and every car. Now, when you go in to test drive a car, you absolutely have to inform the sales associate that you only intend to test drive the car and you have no intentions of buying. They may tell you something along the lines of they aren’t going to pressure you to sign anything. Which is great, but don’t be swayed by the numbers or even the drive of the car. Trust me, it was hard for me to not go and sign papers after test driving a vehicle.
5. Insurance
Things to consider is how high your car insurance will go after the purchase. This price will vary from one insurance carrier to the other, but I would say a price of ~$140 is average for where I live. Can you still afford the vehicle you want now factoring in insurance?
You think you have all the above figured out. Now it’s time to head to the dealership to purchase your new car.
6. Time & Patience
Some people spend 2 hours in a dealership others spend 4. You have to be patient, so you don’t feel rushed into getting something you aren’t fully satisfied with. In 30 days you want to feel the same way you felt when you drove your car off the lot. It’s going to take some time to really land on the perfect car or should I say your dream car. You’re probably wondering when is the best time to purchase a new vehicle.
You’re probably wondering when is the best month to purchase a new vehicle? DECEMBER. Point. Blank. Period. Why December? Car Dealerships are looking to clear out most of the inventory to bring in the next new model for vehicles. Also, buying towards the end of the month, which is what I did is a good time to purchase a vehicle. Sales Associates have a quota they have to meet at the end of each month so they are more wiling to negotiate a price if it’s the end of the month.
I hope this helped you figure out what the perfect car is for you!
