subject: Buying A New Chevrolet - Calculating Your Costs [print this page] If you're in the market for a new Chevrolet, it's important to calculate your costs before you start canvassing the local dealership. The prepared buyer is the one who doesn't make a mistake in negotiations and doesn't wind up with a payment he can't afford. Thankfully, there are a number of resources available online for you to make these calculations before you talk to the first salesman. The more work you put in on this side of the buying process, the easier you'll find the dealership half of it. Here are some things you can do to figure out your costs.
Method
The first thing you need to decide is how you will be buying your new Chevrolet. You have three basic choices. The first is paying cash. For this, no calculations are necessary. Inform the salesman that you will be writing a check and you can skip right to talking about the bottom line price of the vehicle and negotiating on those terms. The second is leasing, which is an available option on some models. Finally, you can finance your purchase. These latter two options will require some calculations so you know exactly what your budget is and how much you will be expected to pay.
Leasing
You'll need three basic figures to determine the cost of leasing a new Chevrolet. One is the money factor, the other is the residual value, and you'll also need to know the total drive-off cost. When you have these numbers, you can make the calculations that will tell you the total cost of ownership. This final figure is essential information you need to make an informed decision about which car to buy and whether or not leasing is the right move for you financially speaking.
Financing
You'll need two figures if you'll be financing your purchase. You need to know how long the loan is for and what the annual percentage rate is on the vehicle. To find these figures, you'll need to call a few financing companies and ask them. Some people prefer to finance directly through the dealership, of course, but at least this way you'll know whether or not you can get a better deal elsewhere. Don't make the mistake of putting all of your negotiating eggs in the basket of buying the car and forget that the financing company you choose could make a much bigger difference when it comes to how much you actually spend.
