We’ve all heard the stories about car costs escalating and availability dwindling the last couple of years. People are thinking it’s best to hold on to the car they have and wait out what inflation has done to the automobile market. Whether you are buying a new car, considering a preowned or maintaining your current vehicle, this blog will examine tips from insurance, to maintenance, must-have apps, habits, credit, equity and more.

Purchasing a new car doesn’t have to be out of reach. Have you considered a certified pre-owned car? It isn’t as hard as you think to purchase the car of your dreams by purchasing someone else’s trade in. Someone on our team just did that with a 2020 high end brand with low milage. Trading in their slightly older car dropped the already good price down considerably. Financing the car provided very affordable monthly payments and put our co-working in a very nice, almost new car. If you look around, you may find a gem. This may require you to look at dealerships out of your area as well. When you walk into a dealership, here are two very important things to consider.

1. Having a good credit score will provide you with the best rates.
2. Secure outside financing for your auto loan. If you rely on the dealerships for financing, you will likely pay more because they typically mark up the interest rates which can add thousands of dollars to what you are paying.
3. Creating and sticking to a budget.
4. Consider purchasing a car at the end of the year when dealerships look to unload inventory.
5. Don’t be afraid to ask for a deal.

When you sit down to sign for your car with their financial team, you may be presented with several “add-ons”. As you can imagine, these come with a cost. This includes, extended warrantees, defense against paint chipping and fabric staining, tire protection, undercoating and so on. The extra cost per month for 36-72 months is considerable.

Consider the upkeep of the car you are looking at. Does it require premium gas as opposed to regular. If something breaks, does it cost more if you are purchasing a luxury car? It can be enticing to purchase a preowned luxury car at an affordable price tag, but don’t forget maintaining that car won’t be cheap. If you do purchase a luxury preowned car, we recommend “certified”. With a certified preowned, the car gets a complete inspection in which any necessary auto repairs and parts replacements are taken care of before you purchase it. Most certified preowned cars will get an extended warranty that is passed on to the new owner . What is covered in the warrantee? Will your insurance go up? It may be a good time to compare other insurance plans to the one you have. Many people have saved up to $500 by switching to another provider.

Before going to the dealership, set your budget. Take some time to evaluate your expenses and your financial situation. Once you feel comfortable with your number, start looking at your options. Know what you are up against before going to the dealership, so you are prepared. If you are looking to replace your current car, trading it in can off-set the cost of the one you are purchasing. Also, making a larger down payment will drive down your monthly payments, reduce interest paid, provide more equity, and potential get you lower rates. It is recommended to put 20% down on a new car, and 10% on a preowned car.

Investing in your current car will keep the value high for resale. Just like going to the doctor for checkups, your car needs regularly scheduled maintenance. This includes oil changes, checking all fluids, testing the lights, changing windshield wipers, cleaning/replacing filters, rotating tires, cleaning both the inside and outside of the car, etc. Also, don’t let small issues go unattended—in time they can lead to bigger, more expensive issues. Catching things early can save you money down the road.

While it may not be the best time to consider purchasing a car, having a plan you are comfortable with can offset the risk. Don’t hesitate to contact our offices with any questions or concerns.