Prostock-Studio / Getty Images/iStockphoto
During the holiday season, many automakers promote car sales by offering car sales and financing deals to coincide with the release of new model cars. If you’re in the market for a new or used car, this period is critical. It’s a great time to buy for extra savings, but this is an important financial decision so you need to plan ahead.
Here are some ways to prepare for your holiday car purchase.
Understand how much you can use
The first step to buying a car this holiday season is creating a budget for yourself.
“There are many costs associated with buying a car, including purchase costs, insurance, maintenance, and fuel,” said Renee Horn, chief marketing and customer experience officer. chase auto. “Knowing how much you can afford, especially if you plan to pay over time, is key to avoiding a car bill that strains your finances.”
SHOP TO FIND THE BEST PRICES
“Cars, like many other goods, have price cycles. Dealers tend to find better deals at the end of the year as they need to meet quotas and clear inventory,” Horn said. said.
However, this does not guarantee that you will find the best deal at the first dealer you go to.
“Be sure to consider multiple cars and shop at multiple dealerships to get the best price,” Horn says.
Gather information about cost of ownership
As Horn said, purchase price is only one aspect of the cost of owning a car. To make sure the car stays within your budget, be sure to ask your dealer questions to find out how much you’re prepared to pay over the course of ownership or lease.
“Ask about the car’s warranty, fuel and maintenance requirements,” Horn says.
You can also ask to take the car to your own mechanic for a second opinion on the estimated cost, she added.
Decide whether to finance or lease
Knowing whether you’re buying or leasing a car can further help you estimate costs and prepare financially.
“There are benefits to both leases and loans,” Horn says. “With a loan, there are no mileage limits and you have the freedom to customize and modify your car as you like. Once the finance is paid off, it’s yours to own.
“Leasing typically costs less upfront than financing, and you can return, buy, or trade in the vehicle at the end of the term,” she continued. “However, keep in mind that most leases have mileage limits, so it may not be the best option if you travel frequently.”
Calculate EV
If you’re considering buying an electric car, do the math to decide if an electric car is the right choice for you.
“Cost, maintenance, range, and charging logistics are all important factors to consider,” Horn said. “On average, electric cars cost about half as much fuel as similar cars that run on gasoline. But just as gas prices vary, electricity costs vary depending on location, driving style, and battery size. It’s different.”
EVs typically have higher initial costs, but this doesn’t necessarily mean they end up costing more overall.
“There are options to offset costs, including federal and local tax incentives,” Horn noted.
“When it comes to maintenance, EVs typically require less maintenance than traditional cars,” she said. “EV batteries often carry warranties of eight to 10 years, which is longer than most people own a car, but EV tires degrade faster due to the weight of the battery. .”
Find out how long you plan to keep your EV, the typical charging costs in your area, and whether you can save money by switching to an electric vehicle.
Details of GOBankingRates
Source
