Buying a vehicle is an exciting milestone, but it can also feel overwhelming. Between researching your options, comparing prices, and finding the right financing, there are several important decisions to make before signing on the dotted line.
While friends and family may offer plenty of advice, the best vehicle for you ultimately depends on your needs, lifestyle, and budget. By taking a strategic approach to both car shopping and financing, you can make the process easier and feel more confident in your final decision.
Determine Your Budget Before You Start Shopping
Before researching vehicles, it's important to determine how much car you can realistically afford. Many buyers focus on the purchase price alone, but the true cost of vehicle ownership includes much more than the monthly payment.
Consider expenses such as:
- Insurance
- Fuel
- Maintenance and repairs
- Registration fees
- Taxes
Our Auto Loan Calculator can help you estimate monthly payments and compare loan options before you start shopping. Setting a budget upfront narrows your choices and helps you avoid falling in love with a vehicle that doesn't align with your financial goals.
Make a “Car Needs” Checklist
It’s not common for buyers to just wing it when car shopping. You may see one that appears adequate and get swayed by style and a persuasive salesperson. That’s a common occurrence when narrowing down the best cars for your unique purposes.
But the best cars aren’t always the ones with sleek designs. They are often the ones to get you and your family comfortably to work, school, appointments, and maybe a road trip. That’s why a proactive approach to identifying your real needs and a checklist may be helpful. Consider the following questions:
- How many passengers will you carry?
- Do you primarily drive in cities, suburbs, or rural areas?
- Do you anticipate off-road driving?
- Will you require all-wheel or four-wheel drive?
- How far is your work or school commute?
- What MPG fits your monthly fuel budget?
- What is your automobile insurance budget?
- What is the climate in your area?
- How much cargo do you carry?
- How long do you plan to keep the vehicle?
- Are you looking for the lowest monthly payment or the lowest overall cost?
- Do you anticipate any major life changes, such as a new job, marriage, or a growing family?
- What essential features do you need?
These answers provide a basis for determining which cars warrant further due diligence before making a final decision.
Locate The Best Cars For Sale
Living in the digital age offers significant advantages for car shoppers. You no longer need to spend entire weekends on new or pre-owned car dealership lots. Most dealers have uploaded their entire inventories of new and used vehicles to their websites.
Our Vehicle-Buying Service
If you're not sure where to start, Peach State members can take advantage of Auto Assistance for personalized support throughout the vehicle-buying process.1
Auto Assistance can help you:
- Find a vehicle that fits your needs and budget
- Review vehicle history reports
- Compare pricing and market values
- Save time researching available options
- Navigate the buying process with confidence
For many buyers, having expert guidance can help remove much of the stress and uncertainty from finding the right vehicle. There’s no reason to overpay or buy a “lemon” when Auto Assistance is only a mouse-click away.
Consider the Total Cost of Ownership
The purchase price is important, but it's only one part of the overall cost of owning a vehicle.
Before making a final decision, research:
- Insurance premiums
- Fuel costs
- Maintenance expenses
- Repair history
- Registration fees
- Vehicle depreciation
Two vehicles with similar sticker prices can have very different long-term costs. Looking beyond the purchase price can help you choose a vehicle that fits your budget now and in the future.
Schedule A Test Drive
Once you've narrowed your list to the best cars that meet your needs, it’s time to make a few calls and schedule test drives. Most test drives last 10-15 minutes and should include some highway driving.
Many new and pre-owned dealerships offer test drives on a first-come basis, so be sure to bring your driver’s license and proof of insurance. Private car sales usually require coordinating schedules with the seller. It's important to confirm the legitimacy of the seller before sharing your contact details or other personal information.
During the test drive, look beyond style and features to how the vehicle performs in everyday situations. Pay attention to visibility, comfort, cargo space, ease of parking, and how it handles in both city and highway driving. A vehicle that looks appealing on the lot should also support your daily routine.
- Brakes: Test the brakes in a vacant parking lot if possible. In all likelihood, the vehicle has been sitting a while, so they may feel a little spongy or weak at first. This should shake off after a few presses. If it doesn’t or if the vehicle pulls to one side, it may need repairs.
- Suspension: If the car makes seemingly unusual noise when negotiating turns or potholes, there may be a problem.
- Engine Noise: Consider whether the engine runs quietly or if there are specific sounds it makes. For example, a clicking noise may indicate the vehicle needs the lifters replaced.
- Comfort: The best cars are generally the ones that you feel safe, secure, and comfortable driving. Consider rating the vehicles that are in good condition in terms of driving ease.
With a short list of options, it’s time to focus on the financial end of the process. Some of the vehicles on your list may push the top end of your budget. However, a cost-effective car loan may reduce the monthly payment enough to afford a vehicle at the top of your list.
Know Your Trade-In Value Before Negotiating
If you plan to trade in your current vehicle, spend some time researching its estimated value before visiting a dealership.
Having a general understanding of your vehicle's worth can help you evaluate offers more confidently and avoid confusion during negotiations. Understanding both your trade-in value and financing options can put you in a stronger position when it's time to make a purchase.
Want to learn more about negotiating? Check out our "How to Negotiate Car Price: The Ultimate Money Saving Guide eBook".
How to Find The Best Car Loan
Before you begin negotiating price, take time to research car loans separately, even as you narrow your vehicle choices. While many online lenders are available, some may charge hidden or high application fees and high interest rates.
Peach State offers personalized guidance and competitive auto loan rates – important advantages as you work to secure a loan that fits your budget.
- Finding the Best Auto Loan: There are a number of factors to consider when choosing the right loan for your needs. At Peach State, we offer a variety of smart car financing options for new and pre-owned purchases, first-time car buyers, and those with less than perfect credit scores. Contact us today to get pre-approved!
- Calculating Your Monthly Payment: While your monthly payment matters, it shouldn't be the only factor you consider when choosing a loan. A longer term can lower your payment, but it may significantly increase the total interest you pay over time. Our Auto Loan Calculator can help you compare loan terms and see how different options affect both your monthly payment and overall borrowing costs.
- Figuring Out Your Down Payment: Review your available savings and determine how much you can comfortably use for a down payment. Putting money down lowers both your monthly payment and the total cost of your loan. Aiming for 10%–20% is a helpful guideline, but any amount will reduce your overall expenses. Be sure to keep a financial cushion in place, and avoid using all or most of your savings.
- Getting Pre-Approved: You don't need to find the perfect car before applying for a loan. Getting pre-approved before you start shopping lets you know your maximum borrowing limit.
Buying a vehicle doesn't have to feel overwhelming. By identifying your needs, establishing a realistic budget, researching your options, and understanding your financing choices, you can approach the process with greater confidence.
Avoiding Costly Mistakes
Whether you're purchasing a new vehicle or a pre-owned car, thoughtful planning can help you avoid costly mistakes and choose an option that fits your lifestyle and financial goals.
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For more information on how to find the best cars and car loan for your needs PLUS, ways to save time and money on your car buying journey, check out our Car Loans 101: Car Buying Made Easy complete guide! Download your copy today!
- Guaranteed Asset Protection (GAP) insurance is an optional coverage that helps protect owners of new, leased, or financed vehicles. It's designed to cover the “gap” between a vehicle’s depreciated value and the remaining loan balance if the vehicle is declared a total loss. Understanding how GAP coverage works – and the additional benefits it may offer – can help you decide if it's a smart addition to your protection plan.
- Financial Education: If you're preparing to buy a vehicle, Balance Financial Fitness offers free financial educational resources to help you understand budgeting, credit scores, borrowing, and other important topics that can impact your car-buying journey.
With the right tools, resources, and a trusted lender like Peach State, you can move through each step of the car-buying journey with confidence. To get started, get pre-approved online or over the phone. Have questions? Contact us, we'd love the opportunity to help you on your car buying journey!
1 Peach State FCU has contracted with Auto Assistance, LLC to make this service available as a convenience to our members. Any manufacturer’s warranties are not services of the credit union and are not obligations of or guaranteed by the credit union. The credit union makes no representations as to the services of any provider or any vehicles purchased.
