Unlike a used car that requires somewhat less scrutiny before buying, a new car calls for an in-depth analysis in terms of pricing terms and warranties.
Nevertheless, car owners (especially first-time car owners) usually forget to ask the right questions before committing their money into buying the car. Considering the thrill that accompanies new cars, most car owners’ judgement become clouded, and some costly mistakes sneak in.
This article will highlight some important car aspects which most people fail to check before and after buying their new car.
Forgetting Their Specific Needs
When you are buying a car, gas mileage should be a major determinant of the type of car to settle for.
Intrinsically, you need to evaluate the main reason for buying the car. If it is a family car, you will need one with sufficient space and safety features.
Some people often make the mistake of buying a car because of how ‘cool’ they will appear with it. As such, they end up buying a car that is incompatible with their lifestyle, work life, and financial ability.
Therefore, before you decide to buy a particular car, assess your specific needs and have your new car dealers Jackson show you different car models and brands to from.
Ignoring the Add-ons on Your Monthly Installments
Your monthly installments are meant to make it simpler and more convenient to pay for your new car.
However, most car dealerships add more costs to the total cost of your car, which is then distributed over your monthly installments.
The car dealership can add a few thousands in warranty add-on costs to the total cost of the car. Once the total cost is distributed, you monthly installments will make the add-ons look negligible.
For example, if you are buying a new car for $22000 and the dealership is adding some warranty costs for amounting to $1500, the total cost of the car will be $23500 ($22000+$1500=$23500). If the extra warranty costs only add $10 to your monthly installments, you may ignore the additional cost, since it looks negligible.
Therefore, it is important to assess the total add-on costs and determine whether you are getting a fair deal or buying an overpriced car.
Ignoring the Resale Value
Some cars have better resale values than others, depending on the brand, model, and year of manufacture.
Essentially, it would be best to buy a new car that can retain a larger percentage of its value when you want to sell it in the future.
Overlooking Loan Interests
A car dealership can refer you to a loan officer and have you driving home with a brand-new car.
As easy as it may sound on the surface, these loans can carry significantly high interest rates that may see you paying twice or thrice the initial amount. Additionally, hidden charges may accrue and put you in big debts. As a result, you will lose your car due to the inability to repay the loan.
In general, you want to shop around for loans from financial institutions such as banks, with the aim of getting better terms; a 0.5% interest difference can save you money in the long run.
Failure to Assess the Trade-in Value
There are several ways of financing a new car, such as trading in your old car. As such, getting the proper valuation for the old car is crucial as it determines the amount of money you will top up when you are buying your new car.
Most people overlook the importance of getting a good valuation on their old car and leave the task in the hands of the car dealership.
The conflict of interest will inconvenience you financially, seeing that it suits the dealership better if you ‘throw away’ your old car and pay more for the new one.
To avoid paying more for the new car, you should take time to evaluate the current market value for your car. Also, assess the old car’s value as if you intend to sell it rather than trading it in for a new one.
Conclusion
Your new car is an investment as it simplifies your movements saving you time and opportunity costs. As such, it is worth taking your time to research on the crucial functionalities you need in your car.