Don't Get Burned on Your Used Car Purchase

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Shopping For A New Car? Be Smart And Remember These 3 Things

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If you're in the market for a new car and you aren't sure how much money you want to spend, there are a lot of things you need to consider when it comes to auto prices. Going out to buy a brand new vehicle that hasn't ever been driven isn't the best investment.

The higher the auto value the more you have to pay for insurance. If you have a loan, you need to have full coverage insurance, and this increases your insurance substantially. Here are a few things you want to consider when you compare auto prices, to make sure that you get the best car at the lowest price you can afford.

New Vehicles Lose Value Instantly

As soon as you pull out of the parking lot and drive out of the dealership, your car has decreased in value. It could decrease significantly, which is a poor investment. Instead, choose a vehicle with low mileage but isn't a new model, so it doesn't decrease in value greatly while you own it. Some vehicles maintain their value better than others over time because of the model and make.

Dealership Financing Can be Costly

A lot of auto dealerships make their money by using specific financing companies, or their own finance department. This is because the dealership makes money off the leases and loans, or they get a percentage of the interest from the bank they send the customers to. Instead, apply for an auto loan at your local bank or credit union in advance, or try to avoid financing all together.

Shop Around

You have no idea what is comparable at different dealerships and by owner if you don't shop around. You shouldn't just check around to different dealerships in person, but search online within a couple hours of your home. It may be worth driving a couple of hours to save a few thousand dollars on your potential new car.

If you are shopping for a new vehicle and you keep these three different things in mind, you should be able to buy a car that you can afford at a low price. It isn't the best idea to purchase a brand new car off the lot, because you could end up needing to trade it in or sell it, only to find that you owe more on the loan than the vehicle is actually worth.  Be smart and buy from reputable dealers. For more information, contact a professional like