Jini ThorntonCar Buying Tips
Updated: Jan 7, 2020
Did You Know there are 1.4 million more women with licenses than men? According to JP Morgan Chase women consumers are responsible for 65% of new car purchases and service work done at dealerships. Although we buy more new cares, only 38% of women say that are confident when buying a new car versus 58% of men so ladies let’s get prepared today!
How far in advance should you check your credit before you buy or lease a new car?
A minimum of 3 to 6 months.
Should you shop around for a car loan before you buy a car?
Get pre-qualified by your bank or credit union before you start car shopping.
Common car buying mistakes
Not doing your research online before you go to the dealership
Negotiating the monthly payment you can afford versus the price of the car
Not negotiating each part of the deal separately – price, trade in and financing
Making the wrong choice between cash rebate and low interest rate loans
Rolling negative equity forward – being upside down
Not doing a rental test drive for a couple of days before you buy
How long should you finance a car for?
Not more than 5 years
How do you know how much car you can afford?
Factor everything in including insurance, maintenance/repairs, etc.
Know how much down payment you can afford and monthly payment you can afford
Total of ALL debt payments should not be more than 36% of your total gross income per year
Should you lease or buy?
Know how many miles you plan to drive annually
Plan to keep good records of your maintenance
Know what fee you will be charged per mile if you go over the standard 12,000-15,000 miles per year.
Don’t lease a car for longer than whatever the warranty on the car is
Ask for gap insurance with your lease
Should you lease or buy?
Sell your car outright and don't trade it in
Research the value
Really clean up the car
Keep good maintenance records and show them as proof of maintenance