With hundreds of options, car dealerships make it possible to buy vehicles on a budget. However, expenses can add up quickly, so it’s important to plan ahead. A little extra effort helps you drive away in a safe, affordable vehicle.
Do Improve Your Credit
If possible, get pre-approved for a car loan before you start shopping. Otherwise, you could find your dream car, only to receive a surprise loan rejection. Better credit also results in lower down payments and cheaper interest rates.
To start, request a free credit report to view your credit score and outstanding debt. If you have a low credit score, try paying off your smaller debts and getting back on track with larger ones. A secured credit card could help people with particularly low scores rebuild their credit.
Most lenders prefer a credit score of 661 or higher. Once you’re ready, visit your bank or credit union to apply for a loan. A pre-approval makes it easier to stick to your budget. When you know your limit, you’re less likely to overspend.
Do Compare Prices
Figure out what you need in a vehicle. Consider makes, models, mileage levels, safety features, and other essentials, then search for cars that meet your specifications.
Afterward, visit dealership websites. Use the search filters to narrow down their selections, and start comparison shopping. Check each dealership’s exclusive promotions to ensure that you’re getting the best deal.
When a vehicle grabs your attention, look up the current market price. This tells you if the seller is charging you fairly.
Next, start visiting dealerships in person. Photos don’t always tell the full story, so you’ll be able to inspect vehicles and take them for test drives. The dealership might also have cars that they didn’t list online.
Do Inspect the Vehicle
Cheaper doesn’t always mean better. Check the inside and outside of each vehicle for dents, scratches, damages, and broken components. When you go on a test drive, make sure the interior components are working properly. Some dealerships let you take used cars to a mechanic for inspections, which could save you thousands of dollars in repairs.
Don’t Rely on the Sticker Price
When you buy a car, you’re not just paying the sticker price. You’re also paying for interest, fees, and maintenance, which varies according to each vehicle. Do some calculations to figure out the loan’s expenses combined with the interest rate. Ask the salespeople about dealership fees, sales taxes, registration fees, and other expenses, and try to estimate the fuel costs.
Don’t Make Impulse Decisions
You might feel tempted to buy the first car that suits your budget, especially if you’ve been browsing for a while, but impulse decisions could cost you money in the long run. A car that looks attractive today could break down in a week. Always take your time and perform research so that you know what you’re purchasing.
When you’re ready, visit your local dealership to review your options. Discuss your budget, and they’ll show you cars within your price range. Ask about discounts and financing options to potentially save more on your purchase.
