Shop Smart When Buying a New Car
Thinking of buying a car? Whether you’re in the market for a new or used vehicle, doing your research ahead of time will help you get the best deal for your budget. Origin Bank has some tips to help you prepare and save.
First, decide what kind of vehicle will best suit your needs. There are many options to consider, so think about your daily routine to help you narrow the field. For example, if you’re often carpooling groups of kids to school and activities, then you should probably rule out buying a 2-door coupe. But if you frequently transport your boss to professional events, then a sleek sedan could be the smart choice.
Once you’ve settled on the type of vehicle, start researching what makes and models offer the features you’re looking for. Beyond fun choices like what exterior and interior colors you prefer, consider also which models have the best safety ratings, what warranty options are available, and what the costs will be to maintain and repair the vehicle.
Use this information to compare the benefits of buying a new or used vehicle to help you determine which is the best deal both in the short- and long-term.
When considering a new car, remember that some models drop in value, or depreciate, by as much as 20% in their first year on the road. To account for this, many car manufacturers now offer exceptional warranties plus perks like free oil changes and tune-ups for the duration of ownership. So, while you may pay more up-front, you can save on the costs of repairs and maintenance in the long-term.
If up-front costs are a concern, then a used car may be the better choice. Used cars often cost thousands of dollars less than their new counterparts and some late-models may even qualify for warranty benefits. Be sure to check the vehicle history for things like body damage or major repairs so you can avoid buying a lemon.
Another thing to consider is how much it will cost for you to insure* your new vehicle. Things like safety ratings, optional features and even vehicle color can impact your rates, so consult with professionals like our Origin Bank insurance partners to get expert advice on coverage options and to learn which vehicles qualify for the best rates.
Once you’ve determined your car of choice, it’s time to research how much it’s fetching on the local market. Shop multiple sources like local and regional dealerships, as well as companies that specialize in online vehicle purchases. Be sure to look for not only the best price, but also for what rebates and incentives are being offered.
Other considerations – like leasing versus buying, budgeting for car expenses, understanding trade-in values, and more – can seem overwhelming.
Origin Bank is here to help, with resources like our Personal Financial Managment tool to help you build a budget, and expert advice to help you understand your options and avoid headaches throughout the car buying process. Contact us to learn more.
* INSURANCE PRODUCTS ARE NOT A DEPOSIT, NOT FDIC-INSURED, NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY, NOT GUARANTEED BY THE BANK OR AN AFFILIATE OF THE BANK AND MAY GO DOWN IN VALUE (IF APPLICABLE).