New car buying basics for seniors

Getting a good deal on a new car goes beyond the dealer's asking price.

As a senior citizen, you may find that your transportation needs are different from what they were when you were younger. Perhaps you no longer need a car to take you to and from work. Or you may be able to downsize from having two cars in the family to one. Regardless of your situation, use these tips to help you get the best deal when you are buying a new car.

Use your best financing option
Getting a loan on a fixed income can make making ends meet each month a little difficult. You would have to squeeze your monthly payment into your budget, which can be difficult while you are retired. Instead of getting a loan to cover the cost of a new car, you might want to consider dipping in to your savings and paying for the car in cash. Of course, all of this depends on your unique financial situation during retirement, so if you have any questions about what buying a new car means for your finances, you might want to get in touch with a financial advisor.

Research the best cars and shop around for value
One of the great things about being retired is that you have more spare time to do the things you want. This means that you can take your time investigating which cars are right for you. You might want to get some automotive magazines and consumer satisfaction publications to see how different cars rank among the people who buy them and experts in the automotive field. That way, you’ll know which cars are more durable and which cars are more expensive to maintain and repair.

Once you determine the cars that you are interested in, visit different dealerships. Be sure to take test drives and don’t hesitate to negotiate prices and ask about incentives. Doing this can help you get the best deal possible on a new car.

Don’t be a victim!
Unfortunately, senior citizens are especially susceptible to financial scams. If you feel you are being scammed, or if you are uncomfortable with the amount of pressure a salesperson is putting on you, be sure you walk away before there is an exchange of money. You can get some helpful tips on avoiding and detecting scams from your local police department, as well as the Federal Trade Commission website at www.ftc.gov.