{"id":352637,"date":"2016-04-04T10:42:05","date_gmt":"2016-04-04T15:42:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/lemon-law\/buying-or-leasing-a-car-general-tips.html"},"modified":"2024-01-10T10:36:58","modified_gmt":"2024-01-10T15:36:58","slug":"buying-or-leasing-a-car-general-tips","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/lemon-law\/buying-or-leasing-a-car-general-tips.html","title":{"rendered":"10 Tips for Buying a New Car"},"content":{"rendered":"\n
\n \n
\n

10 Tips for Buying a New Car<\/h1>\n
\n
\n By Natalie Moritz<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

A new vehicle is one of the most significant purchases of your life. When in the market for new wheels, it pays to research and review all relevant information before signing on the dotted line.<\/p>\r\n

Whether you pay upfront and in full or finance through an auto loan, you should be aware of all aspects of your vehicle purchase including your budget, loan terms, warranties, and fuel economy.<\/p>\r\n

The following tips for the car buying process will help you get the best deal and avoid problems.<\/p>\r\n

1. Consider Your Budget and the Total Vehicle Cost<\/h2>\r\n

Choose a vehicle that aligns with both your needs and budget. Consider your overall financial situation and establish a monthly payment range you are comfortable with. The total monthly cost for your new vehicle should not exceed 15% of your total monthly income after taxes.<\/p>\r\n

Most consumers will need to finance a new vehicle<\/a> purchase or take out an auto loan. To do this, you will need a down payment. Although minimum down payment requirements vary by lender, the general guideline is 10% to 20% of the purchase price of the vehicle. You may be able to make a smaller down payment if you have a strong credit history<\/a>.<\/p>\r\n

Paying more upfront can be beneficial. Not only will a higher down payment allow a more affordable monthly car payment, but it can also prevent you from going \u201cupside down" on your auto loan<\/a>, which means you owe more money on your loan than the current market value of the vehicle. The first few years of vehicle ownership, when depreciation rates are the highest, are when this is most likely.<\/p>\r\n

There are several costs that go into the total purchase price of a vehicle:<\/p>\r\n