3 Things You Should Know About Buying A New Car

3 Things You Should Know About Buying A New Car

19 October 2017
 Categories: , Blog

If you are in the market to buy a new car you might be confused with all the different options out there. There are many different ways to get a car and to sell your old one. And what will work best for you will depend on your individual situation. Here are some things that you should know about buying a new car:

What Is A Lease?

Leasing a car from a dealership is like renting a car. This is why you go and choose the car that you like and you still will need to put down a down payment. From there, the dealer will let you drive the car, and put a certain amount of miles on it each year, for a certain monthly cost. When you lease is done, which is generally 3-5 years, you will go back in and choose a new car to rent. Or if you want you can buy the car outright at that point.

This option works best for people who want to have a new car all the time since leases generally only apply to brand new cars on the lot. Additionally, it is best for people who aren't putting a lot of miles on the car, since you can be penalized if you put too many miles on it.

What Is A Trade In?

Second, you might be wondering what a trade in is. This is when you go to a dealer and you give them your other car as a down payment for the car that you want to buy. The dealer will give you the trade in value, not the actual value of the car. For example, if you sell the car privately, you will be able to get more money out of it. But the dealer is going to give you less because they are going to turn around and sell the car for a profit.

The benefit to trading in your car is that you don't have to worry about selling your car on the Internet, you get the money right then and there, and you save on taxes. You only pay taxes on the difference in cost from the car you traded in. 

What Is A Private Sell?

A private sell is when you skip the dealer and buy from or sell to a private citizen. In this case, you can usually skip the dealer fees and get a better deal, but it is more of a risk since you don't get any type of warranty.

By knowing these things you can determine what is right for you. Contact a company like Direct Auto for more information and assistance.