Things to Consider When Buying a New Vehicle
There are certain purchases that take a lot of time to figure out. Buying a car is certainly one of the most demanding decisions in life. The number of things to consider can get overwhelming. This can range from the cost of insurance for the new vehicle to whether you can fit a car seat in it for a baby.
For people who are not very knowledgeable about cars, buying a new one can get confusing. Prioritizing what features are important may be easier with some expert tips and tricks.
Can car insurance be transferred to a new vehicle? If you have a great policy and an agent who understands you, it’s important to keep that intact. We’ll talk about the financial, emotional, and obscure factors to consider when buying a new car. These are things everyone should consider regardless of their personal life situation.
Do I have good credit?
People are constantly being told to boost their credit to get a home loan, but it doesn’t hurt to do the same for buying or renting a car. When you make a big purchase on something like a vehicle, you are going to have to borrow money from the bank (unless you’re super-rich or a smart saver). This is nearly impossible if you don’t have a good credit score.
Lenders want to know you are trustworthy enough to give money to. If you never pay back any of your loans, why would you start now with a new car? Before going to the dealership to get your new ride, consider in the months beforehand how you are going to pay for it.
How much of a down payment are you going to pay upfront? Many analysts suggest you are able to afford 20% of the total amount the car costs. This will avoid problems paying the rest of the car off later on. If you can’t afford a one-fifth payment, maybe consider buying a different car.
Can I keep my car insurance?
You can keep your car insurance when you buy a new car. You need to make sure your insurer gets the information on the new vehicle, and your policy price might change depending on the make and model of the new car.
Consider talking to your insurance company before you buy a new car and they can give you an estimate on how much your new policy will cost. This may help you make a smarter purchase.
As far as the actual process of adding a new car to your policy, it’s very simple. You can call your insurance agent over the phone or go online to alter your policy. Make sure you do this before the car is purchased. If you don’t transfer your insurance right away, you risk getting into an accident, and your new purchase won’t be covered.
New vehicles and insurance rates
Many folks might be concerned about how new vehicles will increase insurance rates. Let’s say that you go from driving a Subaru Forrester to a Chevy Corvette. The former is a famously safe vehicle while the latter is a sports car.
If you go from a family car built for tough conditions to a vehicle that is more style than substance, you can expect insurance rates to increase. Talk to your agent before making this type of purchase so you aren’t blindsided when the time comes. Another issue you should consider is insurance fraud.
Don’t try to deceive your insurance company about what type of car you are driving. This is illegal and could result in your coverage being dropped and fines being given out. You could even go to jail depending on how much money you steal from the insurance company in a fraud case.
Does my family like the vehicle?
If you aren’t the only one who is going to be driving the new vehicle, it would be both practical and considerate to take others’ opinions into account before a car purchase. If you are married and it’s going to be a family vehicle, both you and your spouse should go shopping for the new vehicle together.
Is the car big enough for a car seat? Children are a huge factor in buying a car for families. You need to make sure kids are safe and secure when they ride along in a vehicle, and there are also laws about how big your child has to be before they can go without a car seat.
If you are retired and only have to worry about yourself, don’t feel guilty about splurging a little. You may have worked your whole life to buy the car of your dreams. It’s not selfish to give in to that desire if it doesn’t negatively affect your family.
Buying an expensive sports car when your kids are young is a shortsighted financial decision. Good credit, Social Security, and good savings are all factors that help someone who is older finally purchase the vehicle they have wanted for decades.
How often should I buy a new car?
There is obviously a huge tug-of-war between the decision of buying a new car and fixing your old one. Some people think they have to wait a certain amount of time before making a new purchase. This isn’t always the best thing to do, though, especially if the repairs are costing you more money in the long run.
There is no exact age that a car should be replaced. Every person needs to evaluate their own finances and see what’s best for them. Hopefully, the old car is completely paid off by the time you need to make a new purchase. See if you can trade in your current vehicle for the one you’re looking to buy in the future.
Cars are emotional purchases, too. You may have lifelong memories driving a certain vehicle and therefore have a hard time moving on to a new one. If this is the case, try to think of a way to remember your old car. Take a memento of some kind. This can be a little piece of the armrest, or maybe a throw cover that was on one of the seats.
Whatever you do, don’t be embarrassed about sentimental feelings. Cars get us from one place to another, but they also make memories that last a lifetime.
Shawn Laib writes and researches for the auto insurance comparison site, AutoInsurance.org. He wants to help people understand the pros and cons of purchasing a new vehicle.