The Guide to Buying a New Car

The Guide to Buying a New Car

Buying a new car can be a tedious task, especially if you do not know where to begin. This guide may help you get started on the right foot.

Step 1: Choosing a car

In order for your car to work with you, you have to choose a car which you can afford and won’t leave you in financial ruin after every payment. Research the car you want at a price that will give you enough wiggle room in your budget.

Step 2: Getting price information

There are three terms you should know about pricing:
1) Sticker price is the amount the dealership would like you to pay for the car–the price usually found in decal form on the windshield.
2) Invoice price is the total that the car dealership paid the car manufacturer for the car.
3) True market value is the amount you can most likely, and should, get for the car you decided was right for you.

Step 3: Financing the car

When buying a new car, you must know how you are going to pay for it. A cash offer should remove any doubt about your credit, but most people often take out a loan to finance their car. The average down payment on a five-year loan is $4,104 with an interest rate of 1.64 percent, and a monthly payment of $400.

Step 4: Test-driving your car

Before you sign the dotted line on your contract, you need to test drive your car to make sure the feel is right and comfortable.

Step 5: Negotiate the price

Stand your ground when negotiating the price. True market value is what you should pay for your car. Remember you can always go (or threaten to go) to another dealer if the salesman does not meet your price.

New or used, every car needs auto insurance to protect you from the unexpected. Contact North American Advantage Insurance Services today to secure the right policy to meet your needs, budget, and vehicle in Dallas and neighboring cities in Texas!