If you’re looking to buy a car in the near future, there are probably a lot of things that you are thinking about when it comes to the car itself – what type of car (sedan, sports car, maybe van?), or the color (interior/exterior). But, there are a lot of other things that you should think about, and here is a quick breakdown.
Buy or Lease?
The first thing you need to consider is whether you are going to buy or lease the car. For the most part, if you are going to get a new car every few years, then leasing is usually the better option. However, if you plan on holding the same car for a long time, buying usually works out better financially.
It is important to note that most car salesmen will always focus on a monthly payment. Don’t think about this, and instead focus on the cost of the car. And if you’re going to buy, are you going to apply for a car loan or pay cash. If go opt to go with a loan for your car, make sure that you shop around to find the best rate. It could be with the dealer, but it could also be elsewhere.
Next, you need to think about the cost of insurance. If you get a sports car or other high-end car, your insurance will be much more expensive than a standard sedan. Also, if you lease a car, you are still required to maintain a certain level of insurance. In fact, some lease agreements will even make you get gap insurance to cover any value in the difference between the lease contract and the value of the car in case it is totaled in an accident.
Finally, you will inevitably be asked if you want an extended warranty. For the most part, these aren’t worth the price you pay, as the total cost of future repairs rarely exceeds the cost of the contract. So, when asked for an extended warranty, decline unless you really need the peace of mind.