8 Steps to Buying a New Car

1. Define the purpose of your car

Do an adequate amount of research. There are many different types of vehicles on the market and when you are spending a considerable amount of money on an item that you will be using every day for some time, it is important to make sure you know what it is you want as well as what you need.

Think about what you will use your car for. Do you need storage, performance, safety, fuel economy? Will it be used for taking the family on vacations, taking the children to school? Do you want something large, or compact? Will you want to take it off road?

These are all important questions that you should answer before you can decide what car you want.

2. Calculate a budget

Buying a new car is an expensive purchase. You want to work out what your budget is for the purchase. How much can you afford to spend? Think about how long you will be keeping the car for, and try to estimate how much that will cost per year. The #1 cost with purchasing any new car is depreciation. Do some research to work out roughly how much the car will be worth when you wish to sell it. Then you can work out how much it has cost you per year, and if that fits in with your budget. Think of other costs too, like insurance and servicing - they will vary depending on car.

3. How will you pay for your car?

When purchasing a new car you have the option to either buy or lease the car. Leasing is similar to renting a car long-term. You have to give the car back when the end of your lease term expires. Leasing the car is a much smaller initial expense than buying it outright. You usually pay a monthly leasing fee to have the car, usually for a period of around 3 years. You also do not have to worry about selling your car later when you want a new one. You are, however, charged extra for excessive mileage from the conditions of the lease.

Buying a car, although a much larger initial expense, can be cheaper in the long run. Although your car will depreciate quite a bit over 3 years, you still have something left you can sell. The car is unlikely to depreciate as much as the lease would have cost.

If you decide to buy a car, there are ways of financing it if you don’t have the cash to pay for it upfront.

4. Narrow your choices down

Now that you have established the type of car you want and what budget you are comfortable with, you can then compare different vehicles within those ranges. You want to compare the features that each manufacturer has to offer. Some will have more luxury features like air conditioning or leather seats, where as others might have more safety features like extra airbags or stability control.

Decide what options you want your car to have and see which manufacturers offer these.

5. Visit your dealer

Although Car Price.com provides a lot of very useful information on new car purchases, you still cannot experience what the car is like to drive. Seeing the car, being able to smell the interior or even hearing what the door sounds like when you close it are all things you have to do at your local dealer.

6. Test Drive

It is important to drive the car and see how it handles and fits for you. The dealer will also be on hand to answer any questions you have regarding the car. Don’t feel pressured into purchasing a car just because you have taken it for a test drive. You want to test drive a few cars first before you decide, so that you can really compare the difference.

7. Purchase decision

Now you have made your decision of what car is right for you and you are ready to purchase. Although you will be excited about your new purchase, remember there is no rush - they will still be making the car in a few weeks time. So take all the time you need to decide what it is you want. Go in for another test drive if you wish, get opinions from friends and family if necessary.

8. The Purchase

When you are 100% confident about the car you wish to buy, make sure you have everything in order. Try negotiating with the dealer. Ask what discounts he can give you, but don’t appear too keen. If you are purchasing optional extras then you should be able to negotiate some money off them also, as they have a high mark-up. Then you can celebrate that you got a good purchase price for your new car from Car Price.com.