Whether a result of age, wear and tear, or an accident, all cars need to be replaced at some point. Yet, the average price of a (non-luxury) vehicle in the U.S. is over $37,000. With such a big investment at hand, it's only natural to want to do it the right way. From bank loans to choosing a vehicle, here are the do's and don'ts of buying a new car. 

Do:

Consider getting pre-approved for financing. 

Most shoppers need a loan to buy a vehicle, yet many wait until they've set their sights on one before applying for a loan. With a pre-approval, you can find out your max budget before you enter the market. As such, you avoid wasting time browsing for vehicles outside of your price point. 

Focus on the overall price instead of monthly payments. 

Banks usually offer multiple auto loan lengths with timeframes depending on the age and overall price of the vehicle. For example, loans for brand new cars typically range from 60 to 84 months. While longer loan periods can sometimes offer lower monthly payments, they also typically result in higher overall prices because of the additional months of interest. For that reason, compare the long-term costs between options. 

Don't:

Start shopping before you know your credit standing.

A person's credit score is one of the major deciding factors in loan approval. Along with the total amount and duration of the financing, your credit rating also impacts the interest rates. If your current rating is subpar, consider putting off the purchase for a few months, if possible, while you boost your score. Reducing your overall debt and committing to on-time payments are key to this process. 

Overlook pre-owned car options. 

A shiny, brand new vehicle is incredibly tempting, but it has the potential to depreciate by over 20% in value within the first year. Thankfully, you can take advantage of that market cost reduction by opting for a pre-owned model. Not only can this decision save you money, but certified pre-owned options are usually still accompanied by dealer warranties. Such perks boost short-term savings by offering free or reduced-cost repairs and maintenance. 

In the market for a new ride? Get pre-approved for financing at Magnolia Bank. Since 1919, the local bank has proudly served the financial needs of residents across LaRue County, KY. From mortgage loans to personal banking, the trusted institution is committed to honest service and excellent customer service. Learn more about their competitive auto loans online, and direct any questions to (270) 358-3183.