Yahoo Finance Experts: How To Buy a Car in 2024
Want to buy a car this year? You’re in good company. Findings from a November 2023 GOBankingRates survey polling 1,039 American adults revealed that 38% of respondents plan to buy a car in 2024.
Buying a car was also revealed to be a top priority among Gen Z, as 48% of respondents ages 18 to 24 said they planned to do so this year.
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Regardless of your generation, it’s important to approach the car buying process equipped with the proper knowledge necessary to get the best vehicle for your money. We spoke with Renee Horne, chief marketing and customer experience officer at Chase Auto, and Gary Guthridge, assistant vice president of consumer lending portfolio at Navy Federal Credit Union, for their top car buying tips.
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Do Your Research First
Don’t visit a dealership or start shopping for a car online without doing your homework first. Guthridge recommends taking advantage of online tools, such as spending and auto loan calculators, to better help you research various vehicles and compare prices.
One important aspect of research is understanding which type of car you want to buy. Making this decision often means taking your current budget and lifestyle in consideration as well as where you may be in a few years’ time. If you’re still struggling to choose between a new or used car, Guthridge notes that new vehicles have fewer unknowns.
“Buying a new vehicle will most likely get you a lower interest rate and a longer, more suitable term which can result in a lower monthly payment,” said Guthridge. “This, of course, is all predicated on the amount of the loan as new vehicles are much more expensive. New vehicles will also have a higher resale value and are less likely to have mechanical issues.”
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Ask Yourself: Loan or Lease?
Both financing options have their benefits. Horne said there’s mileage limit with a car loan and you would be free to customize and change the car as you see fit. Once the payments have all been made, you would own the car.
Those interested in leasing will typically have lower upfront costs than car loan payments and may return, purchase or trade their vehicle in at the end of the term. Just remember, Horne said, leasing may not be the best option if you travel often because most leases have a mileage limit.
Get Preapproved
Buyers who decide on a loan are highly recommended by Guthridge to get a preapproval, regardless of whether they buy a new or used car. Getting preapproved shows the car dealer you’ve done your homework and allows buyers to exercise more negotiating power.
“With the preapproval, you already have a loan rate, payment and term before you walk on the dealer’s lot. Now you just have to find a vehicle that you can feel good about driving home and paying for every month,” said Guthridge.
Watch for Vehicle Price Cycles
Car shoppers trying to time the best moment for car deals are recommended by Horne to check the vehicle’s price cycle.
“The end of the month and end of the model or calendar years tend to be when you can find a better deal, as dealers may need to meet quotas or clear out inventory,” said Horne.
It’s also a good idea to consider buying 2023 models instead of 2024 models. As a rule of thumb, Horne recommends considering multiple vehicles and shopping around at several dealerships to get the best price.
Always Test Drive the Vehicle
Before you commit to making a purchase, it’s important to test drive any car you’re interested in buying.
“This is your time to see how the vehicle looks and feels, try out the interior systems and figure out if the vehicle fits your needs,” said Horne.
When you schedule your test drive appointments, consider bringing along any items that may be able to simulate your daily driving conditions. For example, if you’re a parent of a young child you might bring a car seat with you.
Once the test drive is over, Horne said you can ask about the car’s warranty and fuel and maintenance requirements and explore getting an extended test drive, or bringing the car to your own mechanic for a second opinion.
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This article originally appeared on GOBankingRates.com: Experts: How To Buy a Car in 2024
