Questions to Consider When Buying a New Car

Questions to Consider When Buying a New Car Make sure you are prepared for the cost of owning your own vehicle

Make sure you are prepared for the cost of owning your own vehicle.

Buying a vehicle can be exciting, especially for those who are purchasing a car for the first time. However, visiting a car dealership can be daunting at times, and who likes the overbearing sales guy that you undoubtedly are approached by.

But amid all the things you’ll likely consider when thinking about a new car, there are important questions to ask to make sure you’re financially ready for such a significant purchase.

Anni Sofferet of Yahoo! Finance and suggests asking these questions before you purchase a new car so that you can more accurately calculate what your expenses will be:

How much is the down payment? 

Different auto dealers will have different fine print when it comes to purchasing a car; some will let you purchase with $0 down, while others will require a certain amount up front. If you plan on trading in your current vehicle, take into consideration whether you still owe on that vehicle.

What kind of warranty is offered with the new car? 

The warranty on your new vehicle will vary, depending on a variety of factors. If you’re purchasing a used car that has more miles and wear and tear on it, you’ll want to factor in any unexpected repairs that might be needed.

How much will the vehicle registration cost? 

The value and weight determine the registration tax; purchasing a larger SUV versus a smaller sedan will result in a larger registration tax bill.

How much will it cost to insure the vehicle? 

Flashy sports cars or luxury vehicles will have higher insurance rates than will economy cars. Making a quick phone call to your insurance agent to find out what to expect can help you avoid an unexpected increase in your monthly bill.

All of the above questions lead to this next question.

What is your budget?

Calculate all the ownership costs that will come with your new vehicle, including the registration tax, your insurance rate and your monthly payment, in order to establish your budget, and don’t stray from it.

What is the car’s history?

Especially when looking at used cars, run a vehicle history report by using the car’s vehicle identification number (VIN); you want to know before you buy whether the vehicle has been in any serious accidents that might lead to car trouble in the future.

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