Things To Consider When Buying A Car

A car is no small investment. Sure it might not be the biggest investment a lot of people make but it’s still huge. Not only that, but the vehicle you purchase is important for the safety and comfort of everyone who ends up riding in it. Getting value out of your purchase is crucial.

Whether you are in the market for a new car or an old one, there are certain tips and considerations to keep in mind while shopping. Some tips only apply to used and others only to new cars. This list is a balance between the two for you to make a consideration.

Here are some things to keep in mind when buying a car.

1. Safety features

This is the most important thing you should consider when buying a car. If you are buying a used car that is a little older, it is important to remember that it might not have the same advanced safety features that a newer car might have. If you are buying a new car you will likely have some safety features standard. It is important to consider what these are.

In general, here are some important safety features you should have: blind-spot monitoring, lane keep assist, lane departure warning, automatic emergency breaking, numerous airbags, rearview camera, rear cross traffic alert, traction control, Electronic stability control, etc. Some safety features are mandatory for new vehicles depending on your jurisdiction.

It is important to research safety features and make sure what you need is included or can be added. You might even be able to negotiate a model with the dealer that gives these without a price hike. When doing a comprehensive safety analysis, remember to include parts of the vehicle that are sometimes overlooked. For example, if you need to drive in all seasons then make sure you have all-season or all-weather tires. If extreme snow is an issue for you, you should look for a tire that is rated for extreme snow conditions.

2. Total price, interest and other fees

Monthly payments are one thing but the total price is actually more important. A vehicle with 5 year financing with a 1% interest rate vs. a vehicle with 7 year financing at a 2.5% interest rate might seem affordable when looking at monthly cost. However, if all other things are the same, the shorter term is the better deal. Not to mention the fact that longer financing periods present the risk that your vehicle will lose value and therefore end up offering little to no profit if/when you sell it.

Try to make use of finance calculators on car manufacturers’ websites (if you’re buying new) or dealership websites (if buying used). The latter may not always be available but you can check. Make sure you know from the dealer and the moment you look at the agreement what exactly you will pay total and/or monthly. You should have an idea of this with everything included. Some fees might naturally pop up. Remain vigilante of these and do not feel obliged to go through with a purchase if the dealer presents an agreement with other fees snuck on.

3. Mileage (for used cars)

If you are buying a new car the mileage might not be exactly zero but it should be pretty close (anything in the double digits should be okay). For used cars, though, the mileage is a consideration that could affect your decision. Try to balance the price with the mileage and the features it comes with. This should help you determine if it is fairly priced.

You can try searching up other same model vehicles (with a similar mileage) from the same year. This can give you an idea of what is fair. There are also car price calculators available online that you can use to check if the vehicle is being sold at market value.

4. Online reviews and reputation

If you’re in the market for a new car it is a good idea to look into how other people feel about the vehicle. Take this with a grain of salt, though. Someone might rate a lower level model or a previous year model negatively due to a con that doesn’t apply to your situation. However, sometimes issues do make it to newer year or upper tier models. This is why context is important here. Be cautious by looking into the reputation of the vehicle overall, as well.

5. Test drive the vehicle

Some used car dealerships allow this and others may not. Many new dealerships do offer this, though. Get an overall feel for the vehicle. Make sure you feel comfortable driving it and it feels natural. If there’s even one small hesitation that you have then consider another option. If the seat is slightly uncomfortable, if you’re having unnatural trouble seeing your surroundings or whatever else then dismiss this choice. If you can’t see yourself comfortably driving the vehicle on a 2 hour road trip then move on.

6. Understand the warranty

For new vehicles and some (not all) used vehicles you should have a warranty that is included. When buying a car, make sure to understand what the warranty is and what it covers. Used vehicles do not typically come with warranties unless in certain situations (i.e. certified pre-owned might offer this). In some cases, you may also be able to add additional warranty coverage for your vehicle from the dealer.

If a used car does have warranty coverage you should look closely into what exactly it offers in this regard. Some warranties might be better than others in terms of coverage. Make sure you have a solid understanding of the warranty because (1) you may need to benefit from it and (2) it may impact your decision and whether you feel you’re getting your money’s worth.

7. Risks

Certain cars are simply more risky decisions compared to others. For example, if you drive a lot then keep in mind that you will be adding mileage, which can decrease the value of the vehicle and tire it out earlier (no pun intended). If you only drive a little bit then this might not be a problem for you.

When buying a used car, consider the history of what the vehicle has been through. If it is a clean vehicle with no accidents, that’s great. However, some vehicles have been in accidents, had serious breakdowns, needed major repairs, etc. In many places, it is the law for a dealer to disclose the history of the vehicle honestly. Make sure you get a print out of the vehicle history before making your decision.

There could also be other risks depending on your specific circumstances. Try to brainstorm some potential issues that could arise from certain vehicles compared to others. This will help you inform your decision.