Truck Articles

Yesterday’s conventional wisdom told us that we can save money by buying a used car over a brand spanking new one. Well, things have changed. Editors at Consumer Reports have recently referenced car loans that are a point or two lower for new car purchases. As such, there’s no time like the present to go over some key strategies when shopping for your next car:

1. The first thing you should do is find the best car loan possible. Don’t wait until you’ve fallen love with a car and are left to work with the financing options of the dealership. You hold all the power when you have secured financing first. If the dealership financing office can beat the terms of your loan, that’s great. But at least they’ll be more motivated to try.

2. When leasing makes sense: if you don’t drive more than 1000 per month. There’s almost always a 12,000 mile per year cap on mileage and if you exceed that you cut a check upon lease termination. Those extra miles can really add up. Also, leasing makes sense if you are able to turn in the monthly payment as a business expense.

3. When buying used makes sense: if you choose a car that is less than three years old and is certified by the manufacturer. To ensure that your car is as safe as possible for your passengers, it shouldn’t be too many years off that assembly line. New safety features are introduced with each manufacturing year. The “certified” designation assures you that your car has passed all of the inspections of the manufacturer and comes to you with an extended warranty.

4. Should you buy a new car? While there is absolutely nothing as great as “that new car smell” there are some things to consider when buying straight off the assembly line. For one thing, the first year for a new model doesn’t always produce the best car. It’s best to wait a year or two for manufacturers to work out the kinks. Consider the cost of ownership of the make you are interested in. How much will the insurance and gas cost? Does the brand hold its value? In other words, will you be able to recoup some of your investment when it comes time to trade it in or sell it down the road?

The main thing to keep in mind is that car dealers are hungry for business at the moment and for the foreseeable future. Don’t let yourself fall in love with a car until you are sure that it makes good sense for you.

Alan Greene writes on numerous education subjects, including online college scholarships, colleges with programs for students with learning differences, and need-based financial aid.

Apr222011

Tags: automobiles, car buying tips, car shopping tips, purchasing tips, Trucks

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