Buying a new car is exciting stuff. The minute you decide you are ready for a new ride, you start noticing all type of different cars on the streets. You wonder whether you should stick to a sedan or plan ahead and get a SUV. Suddenly all conversations with your close friends and family revolve around the subject of which car they like best. But besides deciding what particular car you want to buy, there are some things you need to consider to be a smart buyer. Here’s a list of things you may want to think about before visiting your nearest car dealer.

buy a car
Times are tough and there is scarce disposable income. In times like these buying a new car can dig a big hole in your pocket, so even if you want a new car, think about whether you actually need one. If the old car does not have a lot of miles on it and is still in good condition, maybe you can still make do with it for another year or so. Ideally, you should use each new car for at least 7 years, if not more. You could also visit a car dealer and ask how much you will get for the old car in case you decide to sell it. If the deal is good enough, and if you are not happy with the car in terms of mileage, safety, insurance premiums, etc, it may be better to sell and buy new wheels. But considering all aspects is imperative.
If you are shopping around for a new car to save money, consider checking online car sites for cars that cost less to insure. There are a few such as Hondo Civic, Toyota Sienna LE, Chrysler Town & Country LX, Honda Odyssey LX, Nissan Murano SL, Ford Escape XLS, Peugeot Partner Tepee Urban, Jeep Compass Sport, GMC Sierra K1500 Regular Cab, Chevrolet Silverado 1500, etc, that are considered very safe and economical, and will not run up your running costs. You can probably find the cheapest car insurance rates for such vehicles, provided you have a good driving record. Also, shop around and compare different car insurance quotes online to zero in on a good priced insurance policy that provides you with enough cover and adequate service.

If you have your heart set on a particular make and model, first ask yourself whether you can afford it. After all, it is not just about buying the car. You need to consider the cost of insurance, fuel, finance, and maintenance. Most snazzy sports cars are expensive to insure. If your dream car falls into this bracket, chances are you will be spending a bomb on insurance. You must also check your credit record, as this factor determines the interest rates you will be paying. Review all reports and do all you can to up your credit score to lower the interest rates. Plus, many fancy cars give lousy fuel efficiency. This means you will be spending more gas money too.
Many smart buyers, who do not want to revise their car model and make, simply take one of the two options. They either, walk away from the dream vehicle or compromise and get a pre-owned car instead of a brand new. A new car’s value usually drops about 20%, if not more, once sold. This percentage is even more in cars that are premium like rare sports cars and high end luxury sedans, which means that you can get your dream car for a lot less. Plus, you can limit your loan term and save money on interest.