5 Things You Should Do Before Buying a New Car

Apr 16, 2024, 12:32 PM

Discover how to navigate your next car purchase with ease. Learn essential tips on setting a budget, getting pre-approved, and negotiating like a pro, all with the support of Hughes Federal Credit Union's One Low Rate promise.

Ah, the adventure of buying a new car. It’s an exciting journey, representing freedom, responsibility, and a significant milestone in many people's lives. Whether it's your first rodeo or you're an old hat at this, the thrill of car shopping comes with its own set of butterflies. But Hughes is here to turn that complex maze into a straight road with the five must-dos to make sure you're ready to drive that car off the lot.

Set Your Budget

The first step in your car-buying journey is to determine your budget. This involves more than just looking at the sticker price of your new vehicle; it includes considering the total cost of ownership, which includes insurance, maintenance, gas, and any potential financing charges. Use MoneyCoach's Auto Loan Affordability Calculator to estimate your monthly payments to help you find a vehicle that fits comfortably within your financial situation.

Check Your Credit Score

Understanding your credit score is crucial, as it can significantly impact your financing options. But, with Hughes Federal Credit Union, the stress of varying rates based on credit scores is eliminated. At Hughes, your score won't sway your rate. Our One Low Rate promise ensures that all approved applicants receive the same, low rate, simplifying the financing process and providing peace of mind that you're getting a great deal, regardless of your credit history.

Bonus Tip: Keep on top of you score with CreditSmart, Hughes’ comprehensive Credit Score program that the gives you your latest credit score and report, helping you understand key factors that impact your score, and providing you with the most up-to-date offers that can help reduce your interest costs or lower your monthly payments.

Get Pre-approved for an Auto Loan

Before stepping into a dealership, secure financing with Hughes. Getting pre-approved for an auto loan gives you a clear idea of what you can afford and strengthens your bargaining position. Plus, our straightforward online application means you can get this secret weapon without even leaving your couch.

Research Your Desired Vehicle

With a budget in hand and financing in place, it's time to get into the research. Explore various makes and models within your price range, paying close attention to reviews, safety ratings, and fuel efficiency. Consider your lifestyle and how your new car fits into it. Utilize tools like Kelley Blue Book or Consumer Reports to compare and contrast your top choices.

Take a Test Drive (aka Don’t Just Kick the Tires)

The test drive is perhaps the most exciting part of the car-buying process. It's your opportunity to see how your preferred vehicles handle on the road. How’s the legroom? Is the ride smooth? Can you see yourself owning the road in it? Take your time. It's okay to test drive a few different makes and models. This is a vehicle you'll likely spend a lot of time in, so make sure it checks all your boxes for comfort, performance, and safety.

The Extras That Make a Difference

Consider the long haul with fuel efficiency. Those miles per gallon add up, especially with those road trips in mind.
Check out the tech features. Bluetooth connectivity, navigation, and safety tech can turn a good car into a great one.
Quick tip—give your insurance agent a call with your top car choices. Premiums can vary widely based on model and safety features, so it's good to know what you're getting into.

Mastering the Dealership Dialogue

This is the part that people usually hate the most: talking to dealers at the dealership. But with Hughes' One Low Rate promise in your back pocket, you're already ahead of the game. Here’s how to keep your lead:

  • Be Informed: Walk in knowing the value of the car you're after and the rate you deserve—thanks to your pre-approval with Hughes, you're already there.
  • Stay Cool: Dealers are skilled at sales but you're skilled at knowing what you want. Keep the conversation focused on your needs and your budget.
  • Show Your Cards (Strategically): Letting them know you're pre-approved shows you're serious—and ready to buy. But keep that One Low Rate ace up your sleeve until it's time to talk numbers.
  • Ask Questions: Lots of them. About warranties, any dealer-added options, and don't forget to ask for a better price. The sticker price is just a starting point.

Cross the Finish Line with Hughes

Ready to hit the road in your new car? Hughes is here to make sure you're equipped with our One Low Rate promise, speeding you towards a hassle-free purchase. 

Apply online  today to get pre-approved and gain the bargaining power you need to negotiate the best price for your new or used car.