Buying a Car: New vs. Used
Are you needing to upgrade your car? If you are anything like me, you might just hate car shopping. I’m not kidding, I would much rather drive my car into the ground for years than shop for a new car. I don’t know exactly why, but for me it’s probably partially that I hate spending so much money, and I just don’t like making big decisions like that.
From 2010 to 2018 I drove a 2003 Saturn Vue that I loved. My family hated it because the door handles kept breaking and the windows didn’t like to roll up on occasion, but I hung on to that car for as long as I possibly could. I just despised the thought of buying something different. Finally I upgraded in 2018 to a 2016 Toyota Camry which is a great car. Do I absolutely love it? No. But we got a great deal on it when we bought it and the gas mileage is good (a must right now for sure). Our finances have been good enough for me to upgrade to a vehicle that I really want, but the thought of buying a new car has put me off of the idea. I’ll probably drive this car for years to come if only because I hate buying cars.
Maybe you really do need to buy a different car though and if so, you may be trying to decide if you want to buy a new or used car. Here are some things that may help you decide:
Buying a Car: New vs. Used
Buying Used
Pro: You’ll Save Money
Obviously you’ll save money if you buy a used vehicle versus a one. Of course this is dependent upon the type of vehicle you are going to buy. I mean, you can buy an entry level economy car brand new cheaper than you can probably buy a slightly used high end luxury car.
You may also find that you’ll save money on your auto insurance with a used car. In 2018 we bought a brand new jeep for my husband and wow, was I surprised by how much our insurance was on it.
Cons: It’s Not Exactly What You Want
When you buy a new car you get to choose the make, model, colors, features, etc., so obviously this is not something that you get when you buy used. Additionally, there are always things that you don’t know about used cars as far as their history, maintenance, etc.
Buying New
Pros:
Buying a new car means that not only will you be deciding the make and model, but you’ll also get lower interest rates (if you are financing), the most up to date safety features, the newest tech, and you are the first and only owner.
Cons:
The cons of buying new are the price of course, the instant depreciation when you drive off the lot, and they are more expensive to insure.
What to look for When Buying a Car for Your Teen
Are you shopping for a car for your teenager? Maybe they just got their car, or maybe they are heading out to college and need their own ride for their next journey. Either way, mom and dad are typically the decision makers in that purchase.
Think about it. We are the ones with the driving and purchasing experience. Even if they are paying for the car with their own hard earned money, they need help to make sure that they are making smart decisions.
What to look for When Buying a Car for Your Teen
When shopping for a car for a teenager, the stakes are high. That means that while you are likely on a budget, I know that your focus is on safety, as you should be. That said, you can’t just forgo the other important factors. Here are some of the key factors to look out for when you are buying a car for your teen:
Safety
A larger vehicle has been proven to be safer for teen drivers. That being said, you don’t want a vehicle that is too big. A mid-size SUV or pickup, or even a full or mid-size car would be ideal.
A larger vehicle may help prevent injuries to you teen in the event of an accident, but the focus should be on something else. The focus should be on how well your teen can handle driving the vehicle and the safety features that the vehicle has built in to help avoid an accident in the first place.
When shopping for a car for your teen, here are some of the safety features that you should be looking out for:
- Electronic Stability Control (great for young, inexperienced drivers)
- Sufficient airbags
- ABS
- Hands free controls
Connectivity
Help remind your teen to ignore their phone while driving by making sure their phone can connect to their car easily. I have a teen and she is required to keep her phone in the backseat at all times, but I know that she likes her own music so she can start her music from the phone before the drive begins.
5 things to Remember When Buying a Car
Are you planning to buy a new car soon? We are planning to buy a new family car in the next couple of months and it has me thinking about how to prepare for it all. We actually bought a new car last spring for my husband’s commute and now it’s my turn to upgrade. If you too, are in the market for a new ride, it’s good to keep a couple things in mind before you buy.
- Get pre-approved. If you plan on financing a car, it is best to have a pre-approval in hand before you go. It’s best to head to your bank or credit union. Having a pre-approval is good for several reasons:
- You know what you can afford and how much your payment will be
- You can prevent multiple hits on your credit report, by having one single one done before hand (car dealers always run multiple checks)
- You will know in advance how your credit looks. It may be that you are going to be charged 15% interest and you will then choose to not finance after all. Wouldn’t you rather make this decision on your own instead of at the dealership?
- Test Drive. Whatever car you think you want to buy, be sure to test drive it first. You never know how a car drives until you are behind the wheel.
- Know your trade in value. If you plan to trade in your current vehicle, be sure to do some research on its value before you sign on the dotted line.
- Know your vehicle’s value. The same is true for the vehicle that you are buying. You need to know its true value so that you don’t pay too much for it. Knowing it’s value helps in the negotiating process too..
- Be prepared to walk away. Don’t pay too much for a car. Make sure that you walk into the dealership prepared to walk away if need be. I went online to look at cars for sale earlier and within 100 miles of me, there were 30,000 cars for sale. You will find another deal.
Tips for Saving Money When Car Shopping
Are you needing a new car? Buying a car can quickly become very expensive. Make sure you go in prepared so that you spend only the amount you have budgeted and nothing more. Follow these great tips for saving money when car shopping and go out and get your new ride!
Research the vehicle. Once you decide what type of vehicle you are going to buy, be sure and research it well. It’s reviews, it’s specifications and yes, it’s average selling price. It is good to go in informed so you know what you should be paying.
Take your own financing. Prepare your financing in advance. Apply at your credit union or bank before you head to the dealership and tell the dealer NOT to run your credit again. They get paid extra to finance through their partners so they will try to get you to choose one of them. Bringing your own financing can not only save you money in interest charges, but will also prevent your credit from having lots of hits.
Negotiate before you go in. Do you research and call or go online to the dealer and negotiate for the price you want to pay. Buying a car is stressful and once you are in the dealership, it’s easy to get overwhelmed. It’s also easier for many to negotiate prices when you are not face to face with the salesman. Plus, doing this can save you a ton of time! I recently bought a car from a dealership, negotiated over the phone over the course of 2 days and walked in and out of that dealership in less than 30 minutes and paying the exact amount we had agreed upon.
Have you bought a new (or new to you) car recently? What are your favorite money saving tips for car buying?
5 Things to Ask Yourself When Buying a New Car
Are you planning to buy a new car soon? Whether the car is brand new or new to you, there are some things that you should always look out for to keep yourself on the right side of the deal and saving as much as possible!
For many of us, a vehicle is one of the most expensive purchases we make, it makes sense to focus and be wary of what it is you are getting with both the car itself and the deal. So, before you go and sign on the dotted line, just remember to watch out for these 5 things to ask yourself when you are buying a new car:
- Is it a fair price? Do your research. Look the vehicle up online and find out what the average sales price is on this car. Also, look up Edmunds or Kelley Blue Book to find out what the market value is. Know these numbers before you just sign away to spend more than is necessary.
- How is my credit? You need to have an idea of what your credit score is before you head in to buy. Honestly if you don’t have a decent score, you may want to wait until you buy, because you are going to end up with a nightmare interest rate. People with good credit are going to pay in the 1%-4% range while people with terrible credit can easily be paying 20% on their car loan. That 20% adds A LOT to your bill every month and it is worth waiting while you build that credit up.
- How is this dealer rated? If you are buying from a dealer, be sure to look up ratings and reviews on them before you head into buy. There are some nightmare dealers out there so charge too much and sell lemons, don’t fall for one of those.
- Have I researched this car? You are looking at spending thousands of dollars on a vehicle. Make sure you know what you are buying. You are likely signing up for a payment for the next several years, make sure you are getting a quality vehicle.
Is this my first visit? Never, never buy a car on your first visit. Not only does this give you time to test drive and research the car you are interested in, but it shows the dealer that you are not too eager, which will help clear room for negotiating.