Buying new cars - preparing yourself

There’s no point in knowing everything about the car you wish to buy if you don’t have enough knowledge about your personal circumstances. Salesmen may attempt to tell you what’s right for you… but in truth, only you should decide. Here are some important questions you should know the answer to before you attempt to buy:

Do you know your credit rating? If not, you can request your profile at a number of agencies including Experian and Equifax. Your credit rating will determine the loan rate offer you receive (if you get one at all). If you have no credit history or know you have bad credit, you should attempt to build your credit score before you buy.

Do you have money for a down-payment? Work out what you can comfortably afford to use as a down-payment ahead of time and stick to it. A down-payment will reduce your monthly bills – but you should not put down more than you can afford.

Can you offer a trade in? If so, it’s best to know the value of your car ahead of time. Seek an independent evaluation or at least scan around used car websites and magazines to discover the price that cars of the same make and model are fetching. Don’t allow yourself to be short-changed on how much the car is worth. However, you must be honest – consider its condition and be realistic about its depreciation.

Do you owe money on the car you plan to trade in? Remember that the car loan will still belong to you until the dealer pays it off so you must make sure your loan provider picks up the payment in time. Have the new car dealer produce a statement in writing that they will pay off the car within the time you require.

How desperate are you for a new car? Whatever the answer to this question may be, don’t let the dealer know you need a new car urgently. If your current car is dying or perhaps you don’t have a vehicle at all, you could feel rushed into a deal you shouldn’t agree to. Take your time, and where possible plan ahead – don’t wait until your car is spluttering before looking for a new one!