How to Buy a Vehicle

<h2> Avoid loans and save as much as possible!</h2> <p> The best way to buy a vehicle&nbsp;is to save as much as possible so you pay it outright or make a large down-payment so you pay less interest on a loan. A used vehicle is often a more affordable option, especially if the model you choose holds value. To make the most of Your Budget Plan consider the following:</p> <ul> <li> Be aware of all additional fees and charges before budgeting for your new vehicle</li> <li> Research historical values of the type of vehicle you wish to buy</li> <li> Understand the ins and outs of financing vehicle loans</li> <li> Factor in insurance costs</li> </ul> <h3> If you are considering a loan</h3> <p> <strong><em>The lowest monthly payment is not always the best option&nbsp;</em></strong></p> <p> Dealers make more money by lengthening a loan contract. Stretching out the payments over many months or years allows them to collect money over a longer period of time, which means more interest for them and the bank. To avoid higher interest payments, be clear about the number of years you can allow yourself to pay off the loan. The shorter the period, the sooner you become debt free and the less interest you pay.&nbsp;</p> <p> <em><strong>Be aware of how much value your vehicle will lose over time</strong></em></p> <p> Ideally your vehicle will not depreciate (lose its value) faster than you pay it off. If it depreciates at a faster rate than you can pay it off and for some reason you have to sell it, it will sell for less then you owe and you will be left paying for the balance of the loan. Vehicles depreciate the most in the first year.</p> <p> <em><strong>Be careful about refinancing</strong></em></p> <p> If you buy a new vehicle&nbsp;before paying off the old one, the dealer is making money and you are likely paying more. Adding a previous loan amount to a new loan is usually at a loss to you. If refinancing, be sure to negotiate and understand all the financial implications before finalizing the deal.</p> <h3> Tips for negotiating</h3> <ul> <li> <strong><em>Forget about the extras</em></strong>&nbsp;-&nbsp;Dealers make money is in the “extras” they offer. Don't allow the salesperson to talk you into extra options that you don’t really need. If you are undecided about an option, step away, and ask someone who is knowledgeable&nbsp;for&nbsp;his or her opinion.</li> <li> <em><strong>Don't buy on the last day of a sale</strong></em>&nbsp;-&nbsp;the dealer may make you feel anxious that time is running out. It is a great pressure tactic for sales.</li> <li> <strong><em>Do take a good look around</em></strong>&nbsp;-&nbsp;Research prices on the internet so you have a good idea of value before you go to a&nbsp;dealership. Salespeople can often recognize customers who haven't done their research—don’t give them the opportunity to exploit your weaknesses.</li> <li> <strong><em>Know&nbsp;Your Budget -&nbsp;&nbsp;</em></strong>Be realistic about the amount you can pay, including interest and all other charges, pre-check buying guides in your area and make sure you have a really good idea of all of the charges that could arise.</li> <li> <em><strong>Don't bring up your trade-in quite yet</strong></em>&nbsp;-&nbsp;If you're trading in an old vehicle, it’s smart to negotiate the new deal first, before bringing up the used one. Salespeople may try to include the value of the used vehicle into the new deal, making it harder for you to see the real cost. Negotiate the new vehicle&nbsp;first, then bargain with the trade-in.</li> <li> <em><strong>Know your accessories</strong></em>&nbsp;-&nbsp;Dealers of used vehicles&nbsp;can sometimes try to save costs by leaving out some of the necessary items that would normally be included with a new car. Tools, including a tire wrench, jack and spare tire are basic necessities and should always be included in the sale price.</li> </ul> <h3> Additional costs to be aware of&nbsp;</h3> <ul> <li> <strong>List Price</strong> (MSRP) is the starting price set by the manufacturer, mostly reserved for the hottest selling vehicles, and very quickly goes down</li> <li> <strong>Documentation or conveyance fees</strong> are usually&nbsp;about $150-300 to make sure ownership is properly executed</li> <li> <strong>Title and registration charges</strong>&nbsp;are minimal but should be factored in</li> <li> <strong>Sales tax</strong>&nbsp;(where applicable) will be calculated on the final cost</li> <li> <strong>Shipping or destination charges</strong> may be charged on&nbsp;a new vehicle, but rarely on a used one</li> <li> <strong>Insurance and gas</strong> are important factors to consider. Make sure, you have a clear understanding of what these monthly costs will be when opting for a new vehicle as they can differ considerably from one vehicle to the next.</li> </ul> <h3> Additional costs that are negotiable</h3> <p> Read the contract carefully; dealers may include the following negotiable costs:&nbsp;</p> <ul> <li> <strong>Advertising charges:&nbsp;</strong>you can ask for these to be removed</li> <li> <strong>Extended warranties:</strong>&nbsp;you don't have to accept them all,&nbsp;ask the dealer to explain the details of your warranty options</li> <li> <strong>Dealer markup:</strong>&nbsp;you can ask for these to be removed</li> </ul> <h3> Additional costs that you are under no obligation to pay</h3> <ul> <li> <strong>Dealer preparation fees</strong>&nbsp;(the cost the dealer bears in order to make the vehicle look good for sale)</li> <li> <strong>Life insurance (on a loan): </strong>You may get whatever insurance you like from wherever you wish. To make it easy you may take the dealers insurance but you are free to look into it first</li> <li> <strong>Disability insurance (on a loan):&nbsp;</strong>As above; this is not mandatory and you can decide to not have insurance for this at all</li> <li> <strong>Options you haven't asked for</strong>, such as&nbsp;rust proofing or anti-theft systems.&nbsp;-You are not required to pay for features that come with the new car even though you haven't asked for them</li> </ul> <h3> When is the best time to shop for a vehicle?</h3> <div class="well success bird"> <ul> <li class="rteindent1"> <strong>Year-end</strong>,&nbsp;(October–November) is a great time, because older models will be discounted to make way for new.&nbsp;</li> <li class="rteindent1"> <strong>At the end of the month</strong>, salespeople are often trying to reach their sales quotas and may be more inclined to negotiate costs.</li> <li class="rteindent1"> <strong>Don't buy in May!</strong> The start of better weather gets people out shopping. Dealers know this and prices are higher.</li> </ul> </div> <p> <u><strong>+++link to Car Calculator+++</strong></u></p> <p> <u><strong>+++link to Vehicle Comparison notes chart+++</strong></u></p> <p> &nbsp;</p> <p> &nbsp;</p>

<h2> Avoid loans and save as much as possible!</h2> <p> The best way to buy a vehicle is to save as much as possible so you pay it outright or make a large down-payment so you pay less interest on a loan. A used vehicle is often a more affordable option, especially if the model you choose holds value. To make the most of Your Budget Plan consider the following:</p> <ul><li> Be aware of all additional fees and charges before budgeting for your new vehicle</li> <li> Research historical values of the type of vehicle you wish to buy</li> <li> Understand the ins and outs of financing vehicle loans</li> <li> Factor in insurance costs</li> </ul><h3> If you are considering a loan</h3> <p> <strong><em>The lowest monthly payment is not always the best option </em></strong></p> <p> Dealers make more money by lengthening a loan contract. Stretching out the payments over many months or years allows them to collect money over a longer period of time, which means more interest for them and the bank. To avoid higher interest payments, be clear about the number of years you can allow yourself to pay off the loan. The shorter the period, the sooner you become debt free and the less interest you pay. </p> <p> <em><strong>Be aware of how much value your vehicle will lose over time</strong></em></p> <p> Ideally your vehicle will not depreciate (lose its value) faster than you pay it off. If it depreciates at a faster rate than you can pay it off and for some reason you have to sell it, it will sell for less then you owe and you will be left paying for the balance of the loan. Vehicles depreciate the most in the first year.</p> <p> <em><strong>Be careful about refinancing</strong></em></p> <p> If you buy a new vehicle before paying off the old one, the dealer is making money and you are likely paying more. Adding a previous loan amount to a new loan is usually at a loss to you. If refinancing, be sure to negotiate and understand all the financial implications before finalizing the deal.</p> <h3> Tips for negotiating</h3> <ul><li> <strong><em>Forget about the extras</em></strong> - Dealers make money is in the “extras” they offer. Don't allow the salesperson to talk you into extra options that you don’t really need. If you are undecided about an option, step away, and ask someone who is knowledgeable for his or her opinion.</li> <li> <em><strong>Don't buy on the last day of a sale</strong></em> - the dealer may make you feel anxious that time is running out. It is a great pressure tactic for sales.</li> <li> <strong><em>Do take a good look around</em></strong> - Research prices on the internet so you have a good idea of value before you go to a dealership. Salespeople can often recognize customers who haven't done their research—don’t give them the opportunity to exploit your weaknesses.</li> <li> <strong><em>Know Your Budget -  </em></strong>Be realistic about the amount you can pay, including interest and all other charges, pre-check buying guides in your area and make sure you have a really good idea of all of the charges that could arise.</li> <li> <em><strong>Don't bring up your trade-in quite yet</strong></em> - If you're trading in an old vehicle, it’s smart to negotiate the new deal first, before bringing up the used one. Salespeople may try to include the value of the used vehicle into the new deal, making it harder for you to see the real cost. Negotiate the new vehicle first, then bargain with the trade-in.</li> <li> <em><strong>Know your accessories</strong></em> - Dealers of used vehicles can sometimes try to save costs by leaving out some of the necessary items that would normally be included with a new car. Tools, including a tire wrench, jack and spare tire are basic necessities and should always be included in the sale price.</li> </ul><h3> Additional costs to be aware of </h3> <ul><li> <strong>List Price</strong> (MSRP) is the starting price set by the manufacturer, mostly reserved for the hottest selling vehicles, and very quickly goes down</li> <li> <strong>Documentation or conveyance fees</strong> are usually about $150-300 to make sure ownership is properly executed</li> <li> <strong>Title and registration charges</strong> are minimal but should be factored in</li> <li> <strong>Sales tax</strong> (where applicable) will be calculated on the final cost</li> <li> <strong>Shipping or destination charges</strong> may be charged on a new vehicle, but rarely on a used one</li> <li> <strong>Insurance and gas</strong> are important factors to consider. Make sure, you have a clear understanding of what these monthly costs will be when opting for a new vehicle as they can differ considerably from one vehicle to the next.</li> </ul><h3> Additional costs that are negotiable</h3> <p> Read the contract carefully; dealers may include the following negotiable costs: </p> <ul><li> <strong>Advertising charges: </strong>you can ask for these to be removed</li> <li> <strong>Extended warranties:</strong> you don't have to accept them all, ask the dealer to explain the details of your warranty options</li> <li> <strong>Dealer markup:</strong> you can ask for these to be removed</li> </ul><h3> Additional costs that you are under no obligation to pay</h3> <ul><li> <strong>Dealer preparation fees</strong> (the cost the dealer bears in order to make the vehicle look good for sale)</li> <li> <strong>Life insurance (on a loan): </strong>You may get whatever insurance you like from wherever you wish. To make it easy you may take the dealers insurance but you are free to look into it first</li> <li> <strong>Disability insurance (on a loan): </strong>As above; this is not mandatory and you can decide to not have insurance for this at all</li> <li> <strong>Options you haven't asked for</strong>, such as rust proofing or anti-theft systems. -You are not required to pay for features that come with the new car even though you haven't asked for them</li> </ul><h3> When is the best time to shop for a vehicle?</h3> <div class="well success bird"> <ul><li class="rteindent1"> <strong>Year-end</strong>, (October–November) is a great time, because older models will be discounted to make way for new. </li> <li class="rteindent1"> <strong>At the end of the month</strong>, salespeople are often trying to reach their sales quotas and may be more inclined to negotiate costs.</li> <li class="rteindent1"> <strong>Don't buy in May!</strong> The start of better weather gets people out shopping. Dealers know this and prices are higher.</li> </ul></div> <p> <u><strong>+++link to Car Calculator+++</strong></u></p> <p> <u><strong>+++link to Vehicle Comparison notes chart+++</strong></u></p> <p>  </p> <p>  </p>

vehicle buying guidelines, down payments, financing, extra charges, vehicle calculator

young women checking out a new car with a salesperson