Whether you are buying your next vehicle or your first car – purchasing a vehicle is a big financial step. Here at Peoples Bank, we want our customers to be fully prepared for the car buying process. We have created a list to help ease the process for you or your loved ones.
It’s Not What You Want, But What You Need
It’s important to be honest with yourself before you go car shopping. That is, assess what kind of car you really need as opposed to the one you want. Be practical and have a clear understanding of your expectations. Will it be a car that just gets you from Point A to Point B? Or, will you be doing a lot of traveling in it?
Consider Buying a Used Car
There are many advantages to buying a used car, including a “slightly-used” car, over something brand new – especially if you don’t plan on keeping the car for a long period. One reason is that a car’s value depreciates quickly.
Check Your Credit
It’s always a good idea to check your credit report/score before you make a significant purchase such as buying a car. Your credit score is a major factor in calculating the terms of your loan. You should always check your report to make sure there aren’t any errors.
Learn the Trade-In Value of Your Current Car
Knowing the trade-in value of your current car gives you a rough idea of what the dealer is likely going to offer you for it. Experts say that you should treat your trade-in and purchase as separate transactions – because some dealers may offer you a good trade-in but raise the price of the car you’re buying, or vice versa. Get your trade-in offer before you start discussing the price of your next car.
Know the True Cost of Car Ownership
The cost of owning a car includes more than your down payment and monthly payment. You must also take into account insurance, gas, taxes, operating and maintenance expenses, and other costs of ownership. Buyers sometimes get into financial trouble because they can afford the monthly payments but not everything else associated with keeping their vehicle on the road.
At Peoples Bank, we can customize a loan to fit your borrowing needs. We offer excellent personal service and competitive rates.