How to Buy Your First New Car: A Beginner's Guide To Buying Your First New Car
Buying your first new car is an exciting prospect, but it can also be overwhelming. There are so many things to consider, from cost to maintenance to resale value and more. If you’re ready to take the plunge and buy your first new car, this guide will help you get started.We’ll explain the different types of new cars and their features, as well as factors to consider when buying your first car. Keep reading for more information about how to buy a new car, as well as specific tips on negotiating with dealerships and finding the best Price. What is a new car? New cars are vehicles that are new to the marketplace, meaning they are brand-new and have never been registered or been on the road. New cars have a new MSRP (manufacturer’s suggested retail price), meaning they will always cost a certain amount and could get you a deal if you know what to ask for. Factors to consider when buying your first car - Make sure you understand the differences between cars. If you’re looking at a midsize sedan like a Camry or Accord, for example, you need to know the difference between the sedan and the compact car. The sedan has more room for passengers and cargo and better crash test results, while the compact car has a smaller, yet more fuel-efficient engine and fewer safety features. - Compare cars’ maintenance costs. While most new cars cost $200 or less per year in maintenance expenses like oil changes, brake fluid changes, and tire rotations, other cars have higher maintenance costs. Before you buy your first new car, find out how much maintenance costs are for the make and model that you’re considering, so that you can factor maintenance costs into your purchase decision. - Consider the car’s resale value. If you plan on keeping your car for a long time, you’ll want to factor in the effect of depreciation on the car’s resale value. Depreciation is the reduction in the price of a car as it depreciates. This is why cars that are more than five years old are worth less than cars that are brand-new. - Know your financing options. If you plan on buying your first car with cash, understanding your financing options is important. You’ve got a few different options, including whether you can buy a car with a low-interest loan. - Know what to do if you find a great deal. If you see a good deal on a car you’re considering buying, act fast. Many dealerships hold cars for a short period of time to help them sell cars faster, so if you find a great deal, act quickly and don’t let it slip away. Tips for negotiating with dealerships - Know what to say: Before you start negotiating with a salesperson, know what you want. Think about what you want in a car, and write it out. This will help you get started with negotiating. - Don’t be pushy: Remember, you’re negotiating against the dealership and not against the car. If you’re being too pushy, the salesperson will sense it and become pushy back. - Make concessions: If you’re negotiating on a cash purchase, make the salesperson let you finance the car with a low interest rate. If you can make enough concessions, the salesperson might let you take the car home fully financed. - Ask for the best price: If the salesperson starts haggling over small things, let them know you’re interested in the best price and ask them to give you that price. - Keep your cool: While negotiating is an important part of car buying, you shouldn’t let it get in the way of buying the right car. Remember, you want to buy a car that fits your needs, not one with the lowest price. Understanding the Differences Between Cars - Engine Size: Smaller engines are more fuel-efficient, but they produce less power, meaning they drive slower than larger engines. - Transmission: Manual transmissions are more popular among muscle cars and performance cars, while automatic transmissions are more common in standard and economy cars. - Drivetrain: A car’s drivetrain determines how the engine and transmission work together to move the car. A car’s drivetrain can be front-wheel drive, rear-wheel drive, or all-wheel drive. - Horsepower: This is how fast your car will go and is measured in horsepower. - Torque: This is how your car’s engine transfers power to the wheels, measured in foot-pounds of torque. - Horsepower to Weight Ratio: This is a rating that shows the horsepower of a car compared to its weight. The better the rating, the faster the car accelerates. - 0-60 Time: This is the time it takes a car to reach 60 miles per hour, usually expressed in seconds or tenths of a second. - Top Speed: The highest speed your car can go. Tips for finding the best price - Look for online ads for car sales that are online-only. These are usually less costly than those where the dealership advertises on traditional media, like TV and radio. - Get multiple estimates. If the first estimate you get is more than you want to pay, try getting an estimate from a different mechanic or shop. - Keep an eye out for sales. Check online for deals on cars that are also being offered for sale at other dealerships. Shop around. Use the same method to shop around for the best deal as you would with the price of a new car. Final Words: Should You Buy New or Used? New cars hold their value better than used cars, meaning they will be worth more in the future; however, used cars are usually cheaper, making it a tough decision. New cars are safest, have less maintenance, and allow for more customization, while used cars have less safety risks, less maintenance, and are more generic. New cars also have better warranties and financing options, while used cars are less likely to have any type of warranty or financing. New cars should be your first purchase, but used cars are a good backup option if you can’t afford a new car on your own.