There are several important things you should do before you enter a dealership and start shopping for a new car. One of the most important things to do is determine your budget. Come up with a maximum monthly payment allowance, and a maximum down payment that you will not go over. When you know exactly how much you can afford to pay for a vehicle you will look only at vehicles that are in your budget. Think ahead! You may be financing for 3-4 years and you probably don’t want not be able to pay other bills because of your car payments.
Also consider your trade-in. If you still owe money on your old vehicle then you should contact your bank and get your pay off. Also find out what the fair market value is for your trade-in vehicle. Remember that the dealership will never pay the fair market value for your vehicle. Make sure you are not upside down on your car loan.
If you can’t afford a new vehicle, then you should consider a good used one.
