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From one car-buying novice to another

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A man reaching to grab a car key while sitting in the drivers seat of a vehicle.

It had been almost 10 years since my last car purchase. Short of going to the dentist, there aren’t many things I like less than spending a precious weekend looking at cars and going for test drives.

Fortunately, as I look back, nearly all the cars I’ve ever bought have been all stars for reliability. I’ve typically wrung 200,000 miles or more out of each one before deciding it was time for a change. That explains the long gap since my last purchase.

Nevertheless, I did buy a new (well, new to me) car in the last few weeks. I bought a lightly-used Subaru, and I’m pleased with how easy it was. I learned a few things that might be helpful for your next purchase, and thought I’d share them, as one car-buying novice to another.

Pricing is more competitive. Online research tools, popular “no haggle” pricing, and other factors have narrowed profit margins for car dealerships. As a result, base pricing is more consistent from dealer to dealer.

Research has never been easier. There are very helpful resources online. Among them, US News has some great information about new and used cars that can answer a lot of your questions ahead of time.

Narrow down your choices. Anyone in the market for a car, truck or SUV faces hundreds of decisions and choices. To get to a decision you can feel good about, it’s critical that you narrow down those choices. I had already determined that I would buy a used model, but by looking at online research tools, talking with friends and noticing other cars on the road, I limited to just a handful the models I wanted to see, the range of years I would consider, and how many “first-owner” miles I was willing to accept before test driving. Narrowing down those choices was a key difference between having a good experience and one that felt overwhelming.

Know what features you want. For me, reliability and safety were the top considerations. Other people care more about performance, price, luxury features, available options or other factors. Knowing what matters to you most will help you assess and prioritize the online research you find.

Financing. It’s definitely a good idea talk with your credit union or bank about financing before you signal to your dealer that you’re ready to buy. Knowing how much you’ll be borrowing, the loan rate you can expect, the length of the term you’re comfortable with, and how much your monthly payment will be are critical factors that you should be very clear about before you visit the dealership. Financing at the dealer is an option many use, but knowing what’s available elsewhere will strengthen your position for negotiating and help you evaluate the competing offers.

Check your pre-approval status. If you’ve received a pre-approval offer, that may be a good place to start your financing research. A preapproval indicates a maximum amount that you may be approved for, but as with any loan, you should only borrow the amount you need. VACU’s website includes a loan payment calculator tool that allows you to adjust the purchase price, down payment and term until you find a combination that fits your budget.

A car is a big purchase, but being systematic about it can remove some of the anxiety and stress. I hope some of these tips may help you the next time you upgrade your ride.

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