5 tips to help you buy a car
Before you drive off in your dream car, check these important steps in the car buying process
You've found your dream car. You can see yourself behind the wheel. Perfect color, perfect size and it seems to be the perfect price. You're ready to just go for it and sign the papers. STOP! Take a step back and consider the big picture. Before you sign, check these important steps in your car buying process:
1. Budget
How much are you comfortable paying each month? Can you afford a down payment? These are important questions to answer before buying a car. And as you’re working on your budget, don’t forget maintenance, insurance, gas and repair costs—all part of the true cost of owning a car. Check out the budget calculator in our FAB online education center to help analyze your budget. After thoroughly examining your budget, you can better know how much you are truly comfortable paying for your new vehicle.
2. Credit Report
When borrowing money, your credit history is one of the most important factors. But how do you check your credit? There are many ways to check your credit for free nowadays. You can find reliable sources here on Global’s Website. You can also check out our Credit 101 Blog if you’re new to the credit world!
3. Preapproval
The process of buying a car can go more smoothly if you research financing options before visiting the dealership. Get a preapproval. It’s easy and ultimately saves you time.
Check with your Financial Institution to see what pre-approval offers or bundles they offer. They will work by pulling your credit and seeing the best offer they have for you and your car buying plans. This will also allow you to have a deeper understanding of your budget and payments.
4. Which Loan?
Different Financial Institutions have different terms and interest rates. Call around to local Credit Unions to get this information. Credit Unions generally have better rates for their members, sometimes with additional incentives if you bundle a product such as a new checking account with the auto loan. Deals are out there so let your search begin. See what Global has available!
5. Shop
Knowledge is power. Spend your time and research the type of car you want. The make and models of cars differ on purchase price, maintenance cost, gas usage and so much more. Look at reviews from owners of cars of your interest. This will give you a better idea of the maintenance or quirks you might find as you start to use your new ride. There are also sites that compile this information. Look here to learn more.
Cars are not as easily returnable, nor is the process of buying a car something you want to plan every weekend. Spending extra time in the beginning of your search and taking these steps as a precursor to shopping the dealership will give you a better sense of what you’re looking for and what to expect. Enjoy your new ride —and drive safely!
