Should You Buy a New Car?
It always a difficult situation to determine when is the right time to buy a new car since it is a big ticket item, that you need to pay. Also many other things you need to consider ahead of time before to make a financial sense to purchase a new vehicle is important. Many financial advisors counsel their clients to hold onto their car until the wheels literally fall off, doing so can be expensive as breakdowns and frequency of repair costs occur. Although you may be reluctant to get back into monthly car payments, it has become impractical to keep an old beater running old car instead to buy a new car as just make sense. Especially, it's difficult to make such a decision, when you don't know how exactly the car works. About this and more (even history) you can read in essays about cars, that'll make everything clear to you.
There are five signal which you must consider it is likely time to let your old car go and buy a new one:
1. Repairs cost more than the car is worth
For example, if you need to spend $2,500 to repair the transmission and the car is only worth $500, then it would be foolish to pay to have the vehicle fixed as you’d then be out $2,000.
2. The car no longer passes the Emissions Tests
While new model vehicles have numerous “drive clean” technologies that make the emissions coming from the tailpipe healthier for the environment, older model cars do not have these technologies and many will not pass emissions tests that are required when license plates are renewed.
3. The cost to insure the vehicle keeps rising
When vehicles age, they can become more expensive to insure and even with a good driving record. Especially if it's a model that's popular with car thieves because its parts are in great demand. Newer cars come equipped with a variety of high-tech safety features that allow them to qualify for lower insurance premiums. You should paying attention to the insurance premiums on your car is just as important as the other costs associated with operating the vehicle, such as repairs. You don't often think of your insurance premium when deciding whether it's time for a new car, but you should.
4. Safety is issue
No matter how well you maintain a car, eventually it will become unsafe to operate. Sometime it can become unreliable such as when driving on a freeway. The older cars do not have many of the advanced safety features that are found in newer models which include side airbags, electronic stability control, rear view cameras, blind spot monitoring and forward collision alerts are all fairly new additions to vehicles. While it can be argued that many of today’s safety features are optional and not necessary, it can also be argued that a car that is so old the muffler falls off is not safe to operate. If you or the passengers in your car, feel uneasy when in your vehicle, that is signal is about time for an upgrade.
At last, the money you save not having car payments gets eaten up by repair costs, higher insurance premiums and needed upgrades. The bottom line is that the older a vehicle, the more expensive it becomes to keep on the road. Eventually, you must acknowledge that it would be more affordable to buy a new vehicle.
Now that you’ve decided to buy a new car and have done some research into the make and model of vehicle you want, it is time to visit a car dealership. This part of the car-buying process can be intimidating and stressful. Salespeople know what they are doing and often play games that leave customers feeling disoriented and taken advantage of.
There’s nothing worse than leaving a car dealership feeling that you’ve been ripped off.
These five steps will help to ensure that you are able get a good deal for yourself:
1. Time Your Visit Strategically
Timing matters when buying a car. For example, there are more incentives and deals on cars at the end of the calendar year when dealerships are racing to clear their inventory of last year’s models and make way for the current model year vehicles. You will also find better prices on various cars at month’s end when dealers are desperate to hit their monthly sales targets. It is better to go shopping for a car in the afternoon on a weekday when car lots are quiet and sales staff are more focused on you than on the weekend when the lot is busy and the sales force is pulled in multiple directions. Factoring in timing will help you get the best deal possible on a new vehicle.
2. Ensure that a Test Drive Includes the Highway
Many car buyers take a vehicle they’re interested in for a test drive, but only go around the block once before deciding to purchase it. A once-around-the-block spin is not nearly enough to give a car a decent test drive. Give the dealership your license and tell them you’ll be back in a half hour. And make sure that a test drive includes some time on a highway, where you can really open up the engine and see how the vehicle performs. People are often amazed at what they find once they take a car on a highway and push the speedometer past 60 miles an hour. If the steering wheel starts to shake, it’s an indication that there’s an alignment problem with the vehicle. If you smell something burning, you may have loose wires or an engine oil issue.
But it is a test drive that tells you the most about a car. Bonus tip: Many car dealerships let customers take a vehicle home overnight or for several days to test it out.
3. Visit Your Bank First
It is always advisable to talk to your bank and know how much car you can afford before visiting a dealership. You should also find out what the bank charges for car loans.
Surveys show the vast majority of people take dealer financing when buying a new car – either a loan or lease. Unfortunately, this is one of the ways to ensure that you either overpay for a vehicle or spend beyond your means and get stuck in unsustainable monthly payments. Test-driving financing with your bank will make sure you know how much to spend and how much that money should cost you. This information will help make you immune to the tricks of a salesperson. In this planning you are able to see if your dealer's offer is better than what the bank will provide.
4. Focus on Needs vs. Wants
Just because you can afford a car with all the bells and whistles doesn’t mean you need a vehicle that is “fully loaded.” It also doesn’t mean that you’ll understand or even use all the technology in a car you buy. For example, most cars today come with cruise control, but studies show almost nobody uses it.
Keep that in mind and be honest with yourself about how tech savvy you are. Sure a touch screen navigation system is nice, but are you really going to use it? Car dealers say they often see people demand fully loaded vehicles with all the current technology only to watch them struggle to open the sunroof. More basic model cars are not only more affordable; they are also easier to manage.
5. Be Prepared to Walk Away
The most powerful thing a person has in any negotiation is their legs. Use them to walk away if you find that you are not getting what you want, or if you feel that you are being taken advantage of at a dealership. Never feel pressure to agree to something that makes you feel uncomfortable. Leave and take your money with you.
If you want, tell the staff at the dealership that you need some time to consider their offer. You can also leave a contact phone number behind with the salespeople. Chances are that they'll get in touch with you and make a better offer. After all, salesperson wants to see is a commission walk out the door. Be patient and stand firm and a good deal is out there if you take the time to make it happen.
The Bottom Line
The bottom line you don’t need to be a professional negotiator to get a great deal on a new car. Understanding how car dealerships work and being honest with yourself about what you need and can afford will go a long way to helping you get a decent vehicle at a decent price.
Cyberspace is full of helpful advice in this regard. Reputable websites such as Clark Howard, Edmunds and Consumer Reports provide great advice on how to get the best deal possible on a new vehicle.
