5 Important Factors to Consider When Buying a Car

5 Important Factors to Consider When Buying a Car

Buying a new car can be intimidating, but with preparation, you can make sure to drive off the lot with a great ride and deal. Before you walk into a dealership ready to buy, consider these crucial factors.

  1. Research Dealerships

Before choosing a dealership, research their reviews online and talk to friends and family about their experiences. It always helps to look at dealership reviews and to see which dealerships have earned high marks or special awards.

If you are looking for a luxury car, remember that many luxury brands don’t work hard to compete because their name sells their inventory. For instance, Mercedes Benz may have the nameplate you think you want, but Lexus may have the vehicle you want at a better price. Stay flexible and find the best luxury vehicle value.

When you’re shopping, don’t buy from the first dealership you go to — travel to different dealerships in the area, take test drives, and compare offers. With a good understanding of your needs and means, you won’t buy the wrong ride. DealerRater is a good first stop for reviews.

  1. Price and Financing

Exploring potential finance options is a critical step in maximizing the cost-effectiveness of a big purchase like a car. One of the first decisions is between buying or leasing. This may save you money, allowing you to choose a higher trim level in the luxury car inventory.

When leasing, you pay for the difference in the car’s value before and after starting your agreement. Buyers should avoid leasing if they plan on driving more than their allocated miles, are worried about damage to the car, or think there’s a chance they would end the lease early.

Whether you’re buying or leasing, a high credit score will give you access to loans with a lower interest rate. If your credit score could be better, examine your credit report for opportunities to improve it. Once you have your credit information, review loan options provided by local dealerships to find a deal that works for you.

It’s also vital to consider the size of monthly payments. An initial down payment isn’t always necessary, but it can be convenient to reduce the size of the loan and monthly payments.

  1. How Do You Plan On Using Your Car?

Thinking about where you plan on driving will provide essential guidance for every other question in the car buying process. Depending on your needs, different features may be necessary or superfluous.

Consider the surfaces and distances the car will be navigating. Cars have different MPG ratings for highway and city driving since city driving requires stopping and starting frequently.

Furthermore automobiles perform differently on paved, dirt, gravel roads, steep inclines, or when hauling or towing large payloads.

If you plan to use your car for a family getaway or to drive a group of friends, comfortably seating all of them is an essential feature. You don’t need to be doing these kinds of activities every day for it to be nice to have a car that can do them all.

Knowing your needs will help you figure out which additional features justify high costs, making it easier to choose the right car for your budget.

  1. Operational Costs

Even if you score a deal on price, every vehicle comes with built-in operational costs. These include maintenance and wear and tear a mechanic might deal with, as well as the paperwork and taxes associated with registering, licensing, insuring, and parking the car.

Assessments of operational costs should also consider how long you plan on keeping this car before getting a new one. Relatively marginal advantages may end up making a big difference over time.

  1. Safety

You never want to be out on the road in a machine that might break. Before purchasing a vehicle, look at its safety ratings and features to see how they compare. A test drive is a fantastic opportunity to get a feel for new safety features offered in any new vehicle you are considering.

Make the most of your test drive by taking the opportunity to evaluate backup cameras, lane assist, or blind spot detectors. Always check what each feature costs and consider whether you anticipate utilizing it or can pocket the savings.

5 Considerations When Buying a Car for Your Business

5 Considerations When Buying a Car for Your Business

Many business owners come to a crossroads about their vehicle when their business becomes profitable. As the owner, you may use your personal vehicle for all your business needs. However, now that your company has grown, you might wonder if investing your money in a company vehicle makes more sense.

There are five factors to keep in mind as you approach the decision to buy a car for your business. Reflect on the points below to ensure you make the right financial decision and protect your business.

1. Choosing Brand and Dealership

When it comes to choosing a brand, you are likely to have a favorite before you even start the process. However, it is important to really study the brands to determine which one has the best deal. After all, if the pricing is good, you’ll be able to choose a higher trim level at the same price as the lower trim of a more expensive rival model.

A good example of this is the Lexus brand. Known for starting prices lower, the brand usually undercuts Mercedes-Benz by as much as $10,000. This means when you head to a Camelback Road Lexus dealer instead of a rival, you are starting out with more options that will fit your budget.

The lower price will make it much easier to justify the purchase, and it keeps business prices down.

To find a reputable dealer, you can check DealerRater. It ranks every Phoenix area dealership and assigns them a rating based on these independent reviews.

2. Timing Your Purchase

Timing is one of the most significant factors in buying a car for your business. You should consider if the purchase makes sense for your needs right now and if the time of year is conducive to getting the best deal.

Have you noticed that you are using your vehicle more for business than personal needs lately? Does your business require a larger vehicle to carry your products more safely? If you have noticed these issues with your current vehicle, your business may benefit from having a company car.

Before heading to the dealership, make sure to time your purchase properly. Take advantage of sales and dealership incentives. Call around to see what deals local dealerships offer or consider buying at the end of the year when dealerships are most likely to cut prices.

2. Upfront Costs

We all may love the new car smell, but you should keep in mind that the price matters. You probably want a luxury SUV because this vehicle says something about your business.

If you want to buy used, you’ll want to focus on a certified preowned luxury vehicle. This should get you some warranty and low mileage. A Camelback Road Lexus dealer, for instance, only sells certified preowned vehicles that have undergone reconditioning after an extensive inspection has identified any little issues.

3. Maintenance

Buying a car for your business is an exciting time. There is no better feeling than driving off the car lot knowing you have made a savvy business decision.

Whether you choose a truck, sedan, or van for your business, all vehicles require maintenance to keep them working their best. It is important to note, however, that there are vehicles that require more maintenance than others. This maintenance is not always cheap.

To keep the company vehicle from interrupting your business flow, factor in the costs of maintaining the vehicle you choose. Most dealerships recommend getting vehicles inspected every 5000 miles. Luxury car brands may require even more frequent upkeep.

4. Insurance Coverage

If you are using company profits to purchase a vehicle and will be using the vehicle strictly for business, consider an auto insurance policy that protects your full investment in the car. Insurance companies design commercial policies specifically for these instances.

Making sure you have full coverage on your business vehicle may not always be cheap, but it can protect your personal assets in an accident. Commercial policies often have significant insurance limits to cover damage to the vehicle and any injuries in a car wreck.

5. Prioritizing Business Needs in Your Vehicle Purchase

Buying a car for your business may require you to consider options for a vehicle you would never consider for your everyday car. It is essential to put the business’ needs first at the dealership.

  • Would an in-vehicle GPS make deliveries more efficient?

  • Will you drive long distances that require good fuel economy?

  • Do you need a third row or more trunk space?

Before heading to the dealership, jot down any vehicle upgrades or modifications that could make your work more enjoyable.

Final Thoughts

Investing your cash wisely for your brand now could set you up for even more growth in the years to come. Though buying a car for your business may be a big decision, it does not have to be stressful.

If you need a vehicle to keep up with your growing business, do some window shopping and some thinking. Then head to your local Lexus dealership to discuss the options you find in today’s new car inventory