Buying a car can be both exciting and stressful. You are likely to start visiting dealerships to explore and test drive some options. Before you do so, consider these 5 tips for buying a new car in Massachusetts.
1. Know Market Prices
It’s difficult to negotiate price and terms without knowing what is available on the open market. Perform some research online before stepping into a dealership. Research vehicle prices based on age, mileage, and features. Also, look into average loan rates available at your bank/credit union and other companies. With this information, you will know whether what’s being offered to you at a dealership is indeed a good deal.
2. Never Shop on an Empty Stomach
If you’ve ever been through the process of buying a new car in Massachusetts, you probably know that it can be a LONG process. You can easily spend 1-3 hours at a single dealership as you test drive vehicles, discuss options, negotiate price, and fill out financial forms. It’s best not to do all of this on an empty stomach. If you’re hungry, you’re more likely to accept whatever they’re offering you rather than negotiating for a better deal.
3. Understand Loan Calculations
Dealerships have a habit of quoting monthly pricing to you rather than giving you a breakdown of purchase price, interest rate, and loan terms. It is important that you are an educated buyer and know what exactly you are paying. A $250/month loan payment over 5 years is certainly much less than a $250/month payment over 7 years. Also, a 3% interest rate will cost you less than a 5% one. Although the monthly payment needs to be affordable, don’t forget to learn about your total cost for buying a new car in Massachusetts.
4. Research Insurance Prices
You may be so focused on the monthly car loan amount that you forget to include car insurance expenses! Auto insurance premiums vary greatly based on your driving history and the make/model/year/mileage of the car. If you have a particular car in mind, contact your insurance company for a quick quote before making your final decision. In most cases, they can provide a quote over the phone within a matter of minutes.
5. Shop At the Right Time
Auto dealerships have quotas. At certain times of the month and year, they are more eager to get your business and may therefore offer better prices. Shopping a week before the end of the month or end of the year is usually best.
Other Tips on Buying a New Car in Massachusetts
There are really 3 major financial decisions when buying a new car in Massachusetts: selecting a car, obtaining a car loan, and getting insurance coverage. Educating yourself on those three things will help you make better financial decisions. We hope that the above tips on buying a car in Massachusetts will also help make the buying process a little easier for you!