The month of February is a popular time for auto dealers to announce some of their biggest sales and savings of the year. BBB of Central New England encourages consumers to weigh their options and shop around to be sure you are getting a vehicle and price that is right for you.
“Preliminary research to find out what you need and want will reduce stress when you get to the dealership,” said Nancy B. Cahalen, President and CEO of the Better Business Bureau of Central New England. “With so many options, having a narrowed down list will get you and the salesman on the same page.” Do a little leg work before checking out the showroom floor. With sales and savings advertised everywhere, it can be hard to determine what may be the best fit for you. Not sure where to start? BBB has a list of accredited auto dealers to help you start comparison shopping.
BBB tips can help you reduce the stress associated with financing and searching for the perfect new vehicle:
- Determine your budget. This sounds straightforward, but there’s more to budgeting a new car purchase than just the monthly payment itself. How good is the vehicle’s fuel efficiency? Remember that your results may vary from EPA mileage estimates. The website FuelEconomy.gov is a good resource for ‘real-world’ mileage data reported by car owners.
- How much will insurance cost on the vehicle? Contact your insurance agent for quotes on various models you may be considering. How much will maintenance and repairs cost? Online business reviews can give you a sense of which models are more expensive to repair. When considering monthly payments, use online calculators to see how different rates, down payments and loan terms can impact your payment.
- Look at the big picture. Don’t become so focused on the monthly payment that you lose sight of the purchase price or total cost over the term of the loan. Extending a loan from 60 months to 72 months for lower payments can translate into additional thousands of dollars over the life of the loan.
- Explore financing options. Visit your local credit union or bank to see what interest rate they can offer, and consider getting pre-approved for a loan. Having this information (or an offer) in hand will allow you to decide whether dealer financing is the best option for you, and gives the dealer a ‘target’ to match or beat.
- Comparison shop online. You can get a price quote on a vehicle from most dealerships in a matter of hours, and then compare competing offers. Websites such as Edmunds.com provide free information on what you can expect to pay for a particular model in your region, and can help you determine the value of your trade-in.
- Look for rebates. Many rebates are available, but some carry eligibility requirements that should be disclosed in advertising, such as loyalty bonuses, active duty military, trade-in bonuses, etc. Make sure you understand these qualifications to avoid disappointment.
- Understand leasing options. If you decide to lease a vehicle, make sure you’re clear on the terms of the lease, and the pros and cons as opposed to purchasing. Leasing can mean driving a nicer car at a lower monthly payment than might be possible with a purchase, but if you drive more than about 12,000 miles a year or are concerned about “excess wear and tear” charges, leasing may not be the best option.
- What’s the bottom line? When looking at the price of a vehicle, remember that you will also pay fees for documentation, title and registration, along with applicable sales tax.