If you are thinking about purchasing a new car, you are probably pretty excited about the idea of driving a vehicle that no one has ever owned before. You shouldn’t be blinded by the bright, shiny and beautiful new cars on the lot, however. It’s important to ask a lot of questions to ensure that you’ll be happy with your purchase after the new wears off, so make sure that you find these things out before signing the dotted line.
1. What Kind of Warranty Does My Car Come With?
New vehicles should come with some sort of warranty. However, not all manufacturers offer the same warranty, so you are going to want to ask before you buy. It’s a good idea to compare warranties between different makes and models before making a purchase.
Then, if something goes wrong with your vehicle in a couple of years, you won’t have to worry about paying for it yourself.
2. What is My Interest Rate?
Many car dealers get people excited by talking about how low their monthly payments will be. If you are paying a high interest rate or if your loan is over an extended term, however, it will be very easy to become “upside down” in your car loan and to end up paying way more than it is worth.
Although the amount of your monthly payment is obviously important for budgeting purposes, it shouldn’t be the most important part of your financial decision to purchase a car.
3. Does My Loan Include GAP Insurance?
If you owe more on your car than it is worth later on during your loan period, you don’t want to be stuck paying the difference if your car gets totaled. GAP insurance helps prevent this and should be included in your loan. Basically, this coverage means that you won’t be responsible for any more of the cost of the vehicle than what your insurance company pays after an accident.
4. Has My Loan Been Finalized?
Some dealerships will tell you that your financing is in order and will allow you to drive the car off of the lot. Then, in a few days or weeks, they will call you back and tell you that your original loan fell through but that they can get you a different type of loan, usually with a higher interest rate or even with a higher down payment requirement.
This can cause you to spend more on the car than you originally would have, or you might have to turn in a car that you have already shown off to your loved ones and gotten attached to. Always ask to ensure that the loan is a for sure thing before you actually take possession of the vehicle.
5. How Much Credit Are You Giving Me for My Trade-In?
If you are trading in your personal vehicle to purchase your new car, make sure that you are receiving enough credit for it. If you aren’t being given a fair amount for your car, you could be better off selling it privately and using the money as a down payment. Ask to see how much you are being offered, and look up the value of your trade-in before making the trade and purchasing a new car.
6. Was This Vehicle Used as a Demo?
Some cars on the lot are used as demos, which means that people test drive them frequently, among other things. If you are purchasing a demo, you should be given a lower price for the vehicle. Otherwise, you might want to ask for a car that was not a demo; you don’t want to pay a premium price for a car that many others have driven and possibly not taken good care of while the vehicle was in their possession.
It’s important to make sure that you are well-educated on your purchase before you sign the dotted line. If you ask these six questions before purchasing your vehicle, however, you shouldn’t have anything to worry about. Then, you can simply focus on enjoying your new ride instead of stressing out about things like paying too much for the car or not having the warranty coverage that you deserve.