Buying a new car requires you to process a huge amount of information, from the details of the machines themselves to their costs and financing options.
Millennials guide to buying a new car
It can be an intimidating experience for anyone, but it is even worse for people who have never done it before. Fortunately, even new shoppers can avoid making mistakes, as long as they follow all of the right steps.
Know your needs
Cars are fairly specialized objects.
A person who needs to haul a lot of cargo on dirt roads will struggle with a sports car, while people who need to take two or three children to school will have trouble with a pickup truck.
Start your search by listing everything that your car needs to be able to do for you.
List the options
Once you know your needs, you should make a list of all of the cars that are available in your area.
Compare that list with your list of needs, and eliminate any cars that cannot meet those needs. This will give you a short list of your choices.
Find your budget
Cars vary dramatically in cost based on their age, performance, and prestige, so it’s important to know your budget so you can narrow down the options.
Some people do buy cars with cash, but that usually restricts them to the oldest and cheapest models on the lot. The increased cost of maintaining those cars can turn into a huge burden over time, so it is often better to get a loan and invest in a quality car.
There are a variety of loans available, and it is usually best to consult a bank or a lender that specializes in cars to find out how large a loan you can handle and what type is best. If you only need a small loan, getting a car title loan with an older vehicle can also be a great option.
The risk is lower than normal because you are buying a new car, which greatly reduces the problems that come with using the old one as collateral.
The next step is to estimate the real cost of each of your options.
The ticket price is a good starting point, but it isn’t entirely accurate. The real cost will also include ongoing factors, such as buying gasoline and maintaining the car.
While you won’t have to pay those costs immediately, they will have an impact on your budget for years to come.
In general, newer cars will cost more on the lot, but have lower ongoing costs due to an increasing focus on gas mileage by car companies and their lack of wear and tear.
People who understand negotiation strategies can often talk the dealer into cutting the price of a recent car, and smart buyers take that discount into account when they are estimating costs.
Check for problems
You should always take a look at a car for basic problems before you buy it.
This is most important for people who are looking at older or used cars, but new models do occasionally have problems that sneak through quality control.
The core of the process is a simple visual inspection, along with a quick glance at the car’s records if it is used.
You won’t be able to catch every possible problem, but this method will avoid the common pitfalls.
Test-drive with care
Driving the car is the last step towards making the choice. You should start out by focusing on the car’s comfort, but follow that up by testing its performance when turning, braking, and performing other basic tasks. Try to do everything that you will be doing with your car in the future, and be sure to take notes if you are going to test more than one option.
Make the choice
At this point, you will have enough information to choose a car.
Simply look at your test notes, rate each vehicle, and compare those ratings to their prices.
Choose the one that offers the best ratio of performance to cost.
Once you’ve made your choice, all you have to do is fill out some paperwork with the dealer and drive your new car home.
What do you think? Have you already bought your first car? I would love to hear from you in the comments below.