Car Buying Guide: Navigate Your Purchase with Ease

Car Buying Guide: Navigate Your Purchase with Ease

Purchasing a vehicle is the second-largest transaction a household will make. Since it typically happens once every eight to 10 years for most families, it is often hard to keep up with what is required.

To help with the preparations before purchasing, HendrickCars.com has put together a handy guide to get you started, which includes tips on budgeting, the selection process, and financing.

Shop: Hendrick Automotive Group’s extensive inventory of cars, trucks and SUVs.

Create Your Budget

The first question to ask is how much is budgeted for the vehicle. According to Car & Driver, a general rule of thumb is that the total cost of transportation should not exceed 20% of the monthly budget.

Another important consideration is the down payment. Traditionally, most lenders require 20% down on the purchase price of a vehicle, which can vary based on the type of financing you ultimately choose. For example, a $50,000 vehicle could require a $10,000 down payment.

There is also the matter of a potential trade-in and the process that goes with it. For instance, is there anything owed on the vehicle? That number is important.

Once obtained, research its value by visiting HendrickCars.com and receiving a Kelley Blue Book Instant Offer, which will give you a good idea of the market price for your trade-in.

A note of consideration: if you are underwater on the loan or owe more than the vehicle is worth; anything over the actual value of your trade will roll into the next one.


What to Purchase?

Now that your financials are in order, it is time to start shopping.

A variety of factors go into deciding the type of vehicle that suits your needs. What is its purpose? How many people will you be carrying? Is it a daily driver or something more suited for weekend activities? These questions will help pinpoint the exact type of vehicle you will want to research.

Another factor to consider is the particular climate you live in. In a state with extreme winters, you may want to invest in a vehicle with all-wheel drive and cold-climate package options such as heated seats. For places with warmer weather, a convertible might be more your speed. Whatever the choice, plenty of options are available.

Safety is also a key factor. Features such as lane-keep assist, pedestrian warning alerts and blind-spot monitoring are quickly becoming must-have items for newer vehicles. Some even offer advanced, adaptive cruise control options, where the vehicle automatically adjusts its speed based on the prevailing traffic.

You may also want a vehicle that includes Apple CarPlay, Android Auto and SiriusXM Satellite Radio.

Considering all the available possibilities is the fun part.


Check Your Credit

One way to streamline the purchase process along is to check your credit score. That way you can research the financial options ahead of time, and have a better idea of what your targeted payments might look like within your overall budget.

To start, make sure you are up to date by requesting a credit report from one of the three primary agencies – Equifax, Experian and TransUnion. You can also get a free annual report at the Annual Credit Report website.

Once you obtain that number, go online and compare it against the rates offered. As you may know, the higher the credit score, the better the rate.

Organize Paperwork

Every car purchase requires several documents to complete the transaction. The most important is the purchase and sale agreement, which includes items like the Vehicle Identification Number (VIN), sale date, and purchase price.

Before heading to the dealership, make sure to bring your driver’s license, proof of insurance, method of payment, and trade-in title.

Apply for Pre-Approval


Once you decide on a vehicle to purchase, visit a Hendrick Automotive Group dealership site and apply for loan financing. Once you provide that initial information, a representative will reach out to guide you through the process.

Gaining pre-approval will also help understand how much you have available for financing. You should also be made aware of any credit issues or areas that need repair before purchase.

In this process, you’ll need items such as proof of income, proof of residence, and more.

With these tips, you should be well on your way to your next vehicle purchase.

Happy shopping!