The Do's and Don'ts of Car Buying

The process of buying a new car can be an exciting time. We know, though, that it can be easy to get swept up in all the new technology (not to mention that new car smell), so we've made a list of some do's and don'ts of buying a new car. To learn about some common mistakes (and to make sure you get a car that best suits your lifestyle), keep reading!

1. Do Know Your Needs

If you want to find the perfect vehicle, start by deciding on what type of vehicle best suits your lifestyle: convertible, sedan, minivan, coupe, compact car, etc.

2. Do Research

When you've decided what type of vehicle you want, the next step is to make a list of what features are important to you. Then, research different makes and models that have all the amenities and features that you want.

3. Do Know How Much You Can Afford

One of the most difficult parts is creating a budget. Although you may have found your dream vehicle, you still need to find one that you can afford. Ideally, you want to put about 20 percent down, limit the term to no more than 60 months and keep your monthly payment below 10 percent of your income. Also, be sure to consider the cost of maintenance, as some cars cost more than others for repairs.

4. Don't Trade In A Car That's Worth Less Than You Owe On It

You know what can be a big burden? Negative equity. You could be paying the debt of two cars in one huge loan if the balance of your old loan is consolidated into the new loan. Definitely do your research ahead of time and find out what your trade is potentially worth.

5. Don't Rush Your Test-Drive

Make sure you take your time when test driving a car. You should enjoy the car, not just the feeling of a new car. Play with the different features, look around the vehicle and ask any questions you may have. Double check that the car has enough space for everything you need.