If you’re in the market for a new car, chances are you’ve already started to stress about it. The car-buying process has a longstanding reputation of being a stressful, drawn out hassle. However, this doesn’t have to be the case- especially when you come prepared. As cars are relatively expensive, you don’t want to make a rash decision and make a bad buy. Therefore, heed the following advice and secure your new investment with a customized Chelsea Car Insurance policy.
Determine your budget.
Be realistic about what your monthly budget allows. You might really want a new luxury SUV, but if you don’t have the cash to back it up, you won’t be able to take it home. A good rule of thumb is to spend no more than 25 percent of your monthly household income for all the cars in your household. And this figure should include not only monthly car loan payments but all other vehicle costs, including fuel and car insurance, suggests Bankrate.
Buy or lease? New or used?
Weigh your options when it comes to buying or leasing the vehicle. If you buy new, you’ll pay a heftier price tag, but you’ll know where the car has been. If you choose to purchase a certified pre-owned vehicle, you won’t know the car’s full history but you’ll save money on price. Similarly, leasing will allow you to have a more luxury vehicle for the same price, but you won’t own it outright and might end up paying a lot of fees toward the end if you violate your lease terms.
Analyze the cost of ownership.
You’ll need to factor in gas, insurance, repairs and routine maintenance cost for any vehicle you are considering. Be sure to allow at least 5% extra to the cost of the vehicle per month to account for these costs.
Secure financing ahead of time.
Dealers don't just want to sell you a car, but they want to coordinate the car loan, too. That's because they typically receive a flat fee or a commission on the auto loans they facilitate, regardless of whether the loan is from the manufacturer or a local lender. So, secure financing from a bank or credit union in advance and compare it with what the dealer offers, states the article. Get preapproved and acquire a loan from your financial institution prior to visiting the dealership for a test drive. This will save you so much time and money! It’s also wise to research potential discounts beforehand, as well. Whether you’re a student, are in the military, or belong to a certain credit union, find out which discounts apply to you.
About Metro Boston
Founded in 1989, Metro Boston is a full-service independent insurance agency servicing customers throughout Massachusetts. If you’re in the market for competitive auto, home, business, life, and/or health insurance, we encourage you to contact us today at 617-884-5480. We would love to add you to the 4,000-plus clients who have entrusted us with their insurance needs.
Written by Metro Boston Insurance Agency on Mar 6, 2017