Buying a new car is an extremely important decision in your life! Make
sure you make the right decision by reading our guide below to help you
through the process.
Buying a new car checklist
Is the vehicle in your price range? -
you don't want to buy a car that will put you into bad shape that will
cause financial harm to you in the future.
Is this car the right size for you? -
can this car fit everyone and everything you need to put in your car?
You don't want to find out that this is a problem AFTER you have bought
the car.
Does the car drive ok? - you definitely
want to make sure of this BEFORE you buy the car to make sure you like
the drive.
Does the stereo sound ok? - some people
forget this one and later found out that they don't like the quality of
the car stereo.
Gas mileage. How far do you drive? Is
economy important? If so, buy a car and not an SUV.
Things to consider when buying a new car
Can the car perform under the weather conditions you live in? -
don't buy a sports car if you are planning to drive it in the snow.
Read over the warranty - be sure of what is covered and what you
are going to have to pay for if there are any damages or maintenance
needed for the car.
Don't stop looking after you find the first car you like -
someone might be really good at selling the car to you however this car
just might not be the right one for you! Look around for better prices
and better opportunities. If you can't find something after you have
looked around a lot, then buying that first car is fine.
Don't make the decision on your own - the other people using the
car (wife, kids, coworkers, etc.) may have some valuable input about
the car.
Is this really what you want? - think it over and make sure you
don't buy it right away! Come back the next day and think about it.
Check the quality and performance ratings by reading a respected
consumer publication called Consumer Reports
Loans versus Leases - Loans enable people to buy things. A lease is a
rental agreement. Once you make all the payments on an installment
loan, you actually own your car; whereas, when all the payments are
made on a lease, you own nothing. Before you lease, we STRONGLY suggest
using a loan payment calculator so you know what the payment would be
if you decided to finance (purchase) the vehicle instead of leasing it.
You'll quickly see how changes in rate, purchase price, term, and down
payment can effect loan payments. Those same factors will effect your
leasing payments as well.
Who Should Lease? - Leasing began as an economical way to provide
vehicles for business use. Today it's a way for private individuals to
drive more car than they can afford. A significant portion of the new
Mercedes-Benz, BMW, and Lexus vehicles on the road are leased. If you
are a small business owner, or use your vehicle exclusively for
business, leasing may be a good idea. However, if like most Americans
you can't deduct lease payments from your taxes, I can't recommend it.
As a rule, the cycle of ownership costs less than the cycle of leasing.
In other words, once all the fees are added up, you'll pay less to buy
a new car you'll own than to lease a car you won't.
Dealers will tell you that a lease is good for people who want to drive
a new car all the time. Leasing also appeals when people want lower
monthly payments and want to drive something they can't otherwise
afford. I say it's not worth it unless you have money to burn. You have
all the responsibilities of ownership with none of its advantages. The
vehicle is owned by the finance company, yet you are responsible for
maintenance, repairs and insurance. Leases limit the number of miles
you can drive: if you drive over 15,000 miles a year, your odometer
becomes a cash register for the finance company. The only financial
advantage of leasing for anyone (other than business use) is that state
sales tax need only be paid once a month, as it's based on the amount
of each monthly lease payment. If you buy a car it must be paid all at
once and is usually rolled into the loan.
Buyer's Remorse - Pleasant as the dealer may be during the selling
process, legally their obligation is over, and yours begins, when you
sign on the dotted line and drive away. In most states consumer
products are covered by 3-day Right to Rescind (buyer's remorse) laws.
Unfortunately, motor vehicle sales and leasing contracts usually aren't
covered. Contact your state's Attorney General's Office for more
information on buyer's-remorse law in your state. If you find you don't
like the car you bought, you're generally out of luck. In rare
circumstances an understanding dealer may help you out. The paperwork
may take weeks to process, though, and you can expect to lose thousands
of dollars. If you bought a car privately, you have no recourse other
than through your attorney or small-claims court. Returning a leased
vehicle is virtually impossible due to the amount of depreciation,
paperwork, and fees involved. If you believe you've been misled by a
dealer, and have documentation to prove it, contact your state's
Attorney General's Office and Department Of Motor Vehicles (DMV). If
either feels you have a case, you'll need an attorney as well.
