Car 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

If you're buying a used car, where can you get a free VIN report?

What apps are great to use when buying a new car?

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