Pinyo is the owner of Moolanomy Personal Finance and a contributing writer to U.S. News Money and Currency from Amex. Moolanomy covers a wide range of personal finance and investing topics, with features that include reviews, comparison guides, and Q&A sections. You can follow him on Facebook.
Fall is the time of year when car shoppers will find the most attractive offers at car dealerships. With next year’s model already on the lot and ready to go, car dealers traditionally offer some of the best deals during the last few months of the year. This can be a big incentive for consumers who are on the fence regarding their next car purchase.
It is important to consider all the factors before making the final decision regarding the purchase of a new car. Here we will look at some of these factors and the role they play in your decision to buy now or hold off until a later date.
Need Versus Want
The very first thing you must consider before hitting the car dealership lot is whether you are looking for a new car because you need one or because you want one. It is all to easy to convince yourself that you “need” a new car when in fact your current vehicle is still operating on all cylinders.
Buying a new car is a major purchase and as such should never be taken lightly. Being one of the few purchases you make that instantly loses value, buying a new car should be the result of a true need and only after examining the financial consequences of such a purchase.
If you determine you really need a new car, the need versus want issue still remains in deciding what type of vehicle to purchase. Before making any decisions, make a list of all features that are important to you and what extras can be turned down to reduce costs.
Consider Incentives Carefully
The best incentives are those that save you the most money. The car industry, like many others, has experienced tough times in recent years. Therefore, incentives today might not be as rewarding as they were in previous years. That being said, it is important to consider how the incentive or deal affects your short-term and long-term finances.
Cash back offers and low interest rates offer benefits at different periods of time. For this reason you should always take time before making a decision to crunch the numbers to ensure you really are getting the best deal.
Refrain From Impulsive Or Emotional Decisions
When faced with a desire to get into a new car, compounded by a salesperson who is very motivated to get you in said car, it is not uncommon for buyers to react emotionally and make impulsive decisions. As with any other major purchase, allow yourself a “cooling off” period to allow the emotional rush to fade and examine your opens with a clear head.
If after careful consideration and research you determine you are in fact in the market for a new car, take advantage of this time of year to save money. With this in mind, it is important you handle the purchase well to save as much money as possible. Before agreeing to a price, do your own research online to determine the average price of the make and model you are buying.
Also have your list of needs versus wants available to reduce the chances of being talked into more car than you need. You should always have a dollar amount in mind determining how much you are able and willing to spend and stick to your budget. This is in fact a great time of year to buy a new vehicle, as long as you have taken into consideration several important factors before signing on the bottom line.
