How to purchase a new car

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You’ve probably spent the last few months dreaming about a new car in your driveway. Now you’re likely looking at models and comparing prices to see what options you have. You need to consider the cost of the car, the financing options, and the negotiation tactics before you go to the dealership. The Cheshire Chevy dealers are your best source for Chevrolets. Richard Chevrolet is the best dealership to visit if you are looking for a high-quality vehicle in Wallingford or Waterbury.

Find out how much you can afford

It is a good rule of thumb to not spend more than 20% of your monthly household income for your new vehicle. This should include the monthly car loan payments, as well as all other costs such fuel, insurance, and vehicle maintenance. Edmunds recommends that the monthly payment should not exceed 15% of your gross income.

Define the meaning of “new”

Although the car is new, it doesn’t have to be brand new. A certified pre-owned option can offer a great way to get a new car, and it will also be cheaper. You will receive a certificate from the manufacturer that certifies the vehicle meets certain requirements. This means you can get a warranty you wouldn’t get from private sellers.

Deciding whether to lease or buy?

You might be able to lease a better car, but it won’t cost you a lot. To avoid heavy penalties, you will need to pay attention to the terms of your lease, including mileage restrictions and wear and tear fees. You should weigh the pros and con’s of leasing or buying the vehicle you are considering.

Limit your options

Once you have established your budget and decided on the best type of ownership to suit your driving habits, it’s time to start looking at the vehicles that caught your attention.

To assess the features most important to you, first visit both automaker websites as well as independent information sites. Take note of MSRPs (manufacturer’s suggested retail price (MSRPs),) and invoice prices. Check local inventory listings to find out what’s available in your region.

Find out the actual cost of it

It is more than your initial payment that it costs to own a car. You can use websites such as Edmunds and Kelley Blue Book to find out how much gas, insurance, repairs, and maintenance it will cost in your area. However, these numbers are subject to your driving habits.

To get a better estimate of fuel consumption, calculate your mileage annually to determine the cost of auto insurance. To get an accurate quote, you will need to provide the insurance agent with the exact model number, trim level, and engine options.

Before you go to the dealer, lock in your financing

Dealers aren’t only interested in selling you a car, they also want to help you arrange a car loan. Dealers are typically paid a flat fee, or a commission for facilitating auto loans. This is regardless of whether the loan comes from a manufacturer or a local lender.

Compare auto loan rates from banks and credit unions before you go to the dealer. Preapproval at a bank/credit union does not mean that you must accept the deal. However, it can help you to determine the best financing option and possibly give you some negotiating power.

All pricing information available

You should have done independent research on automotive websites to determine the invoice price (for new cars) and wholesale price (for second-hand cars) as well as the MSRP for new or the asking price of the dealer (for used).

Although invoice pricing on third-party websites is not always accurate, it can give an indication of the price the dealer paid for the vehicle. You should agree on a sale price close to this number before discounts are applied. Also, keep in mind that the dealer must make at least a few hundred bucks to cover operating costs.

After you have determined the sale price, it is important to include fees such as sales tax, registration fees, and documentation fees. Ask your dealer for a breakdown of the price so that you know exactly where the fees come from.

Do your research on all discounts available in advance

Many automakers offer discounts for military personnel, students, and members of certain credit unions. These discounts can be combined with cash-back rebates, which should be deducted from the final price. These incentives can be found on the websites of automakers before you go.

Your bank account is your best friend if you make your calendar your best friend

Before buying a car, it is important to take into account the season. Dealerships usually hold their biggest sales events in the spring, fall, and end of the year. This is when you will see a return of leased cars. These are the best times to purchase a pre-owned or used car.