How to lease or buy a new car

We’ll detail the steps a savvy buyer takes to eliminate the fear from the car buying and leasing process. These are the right guidelines to make your car buying and leasing process profitable. The information discussed below equips you with all the details you need to buy or lease a car with confidence, helping you complete the process with ease.

Decide Before Leasing or Buying:

There are many decisions to make when buying or leasing a car. One of the first is whether you want to buy the car or lease it. If you buy the car, you will pay the full price upfront and own it. However, if you lease the car, you can use a new car for a set period, and at the end of that period, you can lease another new car. While the process may seem simple, there are many factors to consider.

Leasing allows you to pay a small monthly payment, but you must stay within the mileage limits of the lease. You’ll get a better car for a lower down payment, but at the end of the lease term, you’ll need to start the process over again. However, you will have the option to buy the car at the end of the lease for a pre-determined price. If you like the car and there are no major issues, this can be appealing.

When buying a car, you can take out a loan. Once the loan is paid off, you own the car, but the interest on the loan adds extra cost. The best way to buy a car is to pay in cash, allowing you to own the car outright from the start, saving you both money and time.

Set a Budget and Decide How to Pay:

There are several ways to pay for a car:

1. Cash payment

2. Trading in

3. Car loan and pre-approval

4. Leasing

No matter how you choose to pay for your new car, you should never spend more than 10% of your monthly income. Remember, the car’s purchase cost is not the only expense; taxes, registration, insurance, fuel, and maintenance are additional costs. Consider these along with the car’s value to determine the best budget.

1. Cash Payment:

Paying in cash is a simple process. You just need to have the funds available. Payments can be made through cash in hand, bank check, or online banking.

2. Trading In:

If you have an old car and want to buy a new one, trading in is an option. Determine the value of your old car beforehand and compare it with the price of the new one. Trading in can save you the hassle of repairing your old car for sale, but dealers often offer less than what you might get selling it privately.

3. Car Loans and Pre-Approvals:

A traditional car loan allows you to buy a car with borrowed money. Knowing the interest rate and loan term in advance helps you budget accordingly. Keep in mind:

• Longer loan terms mean higher interest.

• Car-related expenses add to your financial burden.

• Missing loan payments can lead to trouble in the future.

• If the car is damaged before the loan is paid off, you still must repay the loan.

4. Leasing:

If you don’t have enough savings, leasing is an option. Leasing can be expensive but is paid in monthly installments. However, remember:

• You never own the car.

• You must pay a fixed amount each month.

• You must return the car at the end of the lease.

• There’s a mileage limit; exceeding it incurs extra costs.

• Poor vehicle condition means additional fees.

• You cannot customize the car.

• Even after making lease payments, buying the car at the end of the lease can be costly.

No matter your payment choice, carefully consider the above points and set a proper budget to reduce expenses without overspending.

Car Styles and Features:

Before visiting the dealership, decide which car you need from the thousands available on the market. Without prior planning, you might make a poor decision, like overspending or choosing based on looks alone. The two main factors to consider are the body style that suits your lifestyle and the features you want.

Body Style or Car Style:

Decide what type of car you need based on your lifestyle. Consider sedans, SUVs, pickups, or vans. A family might prefer a car with two or three rows and ample cargo space, while individuals may opt for a two-seater or four-seater. For business, a pickup or van may be suitable, and campers may prefer open-back vehicles. Also, think about the vehicle’s size, number of seats, cargo volume, overall dimensions, and fuel economy. Don’t forget to consider where you’ll park the car.

Vehicle Features:

Determine which features you need. High-tech features will increase the price, so match them to your needs, whether you’ll drive long or short distances, in cold or hot climates. Infotainment systems are common in most cars, and some cars even offer semi-automatic or hands-free driving modes

Be sure to familiarize yourself with the car’s style and features to choose the one that best fits your needs. Discuss your options with your family and decide on a budget together. Plan everything in advance so that the dealership visit is smooth and stress-free. By deciding ahead of time which car suits your preferences and fits within your budget, you can avoid unnecessary hassles

Plan ahead to buy the car that suits your needs, discuss it with your family, and set your budget accordingly.

Make a short list: 

Create a list of the cars you like and identify models that match your preferences. Now, you can visit a dealer. Evaluate the cars on your list and compare them to similar models from competitors. This will help you choose the right car. Explore other vehicles that offer similar features and style to those you have listed. If you find another car that meets your needs and is budget-friendly, you can reconsider your choice.

Cars are an essential part of our daily lives and hobbies. So, when choosing a car, make sure to evaluate its purpose and features.

Let’s Go for a Test Drive:

The Internet is a great way to find out which dealers have the cars on your list. Be sure to call the dealer to confirm if the car you’re interested in is still available. Let them know you’d like to come in for a test drive.

Don’t focus on external colors or aesthetics right now; instead, evaluate whether the model’s powertrain and features meet your needs. Ensure the driving position is comfortable, check front, side, and rear visibility, assess the ease of use of technical features, and determine whether you enjoy driving the car.

Check the car’s interior space, the number of seats, how it handles, and whether it has enough power for your driving style. If you have any questions, don’t hesitate to ask the dealer.

During the test drive, ensure you’re comfortable and enjoying the experience. Pay attention to whether the car’s technologies function properly and how well the vehicle performs overall.

Financing and Dealing:

You have already decided on the type of financing you want. If you have a trade-in, calculate the difference between what the dealer is offering and how much you’re willing to accept. This is a good time to reconsider your budget and make necessary adjustments. Find out what the monthly costs will be if you choose to lease, and make sure you understand the other terms and conditions provided by the dealer.

Things to Know Before Signing the Contract:
Sellers may try to rush customers into signing, but don’t let yourself be pressured. Carefully read the offers yourself, and bring a friend or family member to help review everything to avoid making hasty decisions. Learn all the necessary details from the seller. A friend or relative who has experience with cars can provide valuable advice.

Ask the Dealer About Financing:
Although dealers don’t always offer the best interest rates, compare the terms and offers from other lenders. Car companies often offer special financing rates through their own financiers, so review those offers carefully before selecting your lender.

You can also discuss matters like interest rates and trade-in value with your dealer.

Fix Your Deal:

Complete final negotiations with the seller and note any changes to the terms at the time of signing. Review everything carefully and ensure you sign on the dotted line for both the car and the agreed terms. Don’t rush until the deal is complete—understand the contract thoroughly.

Understand the Warranty and Extras:
Now that the most challenging part of negotiating a fair contract is over, the next step is to finalize the deal with the dealer’s finance manager. At this stage, be prepared to hear about extended warranties, fabric protection, wheel and tire insurance, and other add-ons.
Buying vs. Leasing: If you buy and drive more miles than average within the first five years, the standard warranty may expire, making an extended warranty worth considering. On the other hand, if you lease and plan to drive fewer miles, the same warranty might not be necessary.
Be cautious about additional costs like paint protection, mud flaps, and wheel locks, as these can increase the total price.

Be smart and take care. Ensure you’re getting what you want within your budget and that all the dealer’s terms and conditions work in your favor.

Congratulations on Your New Car:

If all the deals are done successfully, then congratulations on your new car! Your new car is ready to go. Take a good look at the car and its features with the salesperson before you drive off the lot. The more you learn, the more you will benefit. There’s no immediate need to look into the owner’s manual.

A good salesperson will connect your phone to the car via Bluetooth. Some salespeople offer a follow-up appointment in person or via video call. Take their help if you feel comfortable, and enjoy your new car.

You acquired your new car no matter how you purchased it. Welcome to your new car!