How to Buy New Car

Tips Tuesday

How to Buy New Car

how to buy a car

I was 20 years old when I went to buy my first new car. I lost my used car due to an auto accident and decided that I was going to get a new vehicle instead of another used vehicle. I took my dad with me because of all the stories I had heard about women being ripped off when buying a car. Although he was with me, he let me handle all the negotiations and after successfully negotiating a deal I was happy with, I was hooked. It would be several years before I would purchase a new car and this time I was married and had 2 kids. Most women would have gladly handed over the car buying to their spouse but I handle the finances and knew what our budget was. He gladly let me handle the negotiations and now when we go car shopping it is my job. We both laugh when people try to talk to him and ignore me. Over the years I have found these 5 tips on How to Buy New Car help negotiate the best deal without giving yourself a migraine in the process. 

Top 5 Tips on How to Buy New Car

  1. Before going to the dealership, check your finances and decide how much you can afford to spend, what type of vehicle you are looking to get, and what are your basic needs. (If you are going to lease make sure you plan for how many miles do you need each year.)
  2. Go shopping at the end of the month, sales people are more motivated to make a deal because they only have a few days left to meet sales goals and receive bonuses.
  3. Never tell the sales person your full amount you can afford. Save some room for negotiation and additional add-ons including the following: Credit Life and Disability Insurance, Gap Insurance, Extended Warranty, etc. Don’t purchase things you do not need. An example is Fabric Protection will set you back a few hundred dollars but you can easily do it yourself by purchasing a can of Scotch Guard for around $12.
  4.  Read thru all the papers and ask for clarification of any items or fees you do not understand. Sometimes they will try to sneak hidden fees in so don’t be afraid to speak up.
  5. The most important tip to remember is – Don’t be afraid to walk away. If something doesn’t feel right or you are not comfortable with their offer say so and go elsewhere.

So have you ever been taken advantage by a car salesman? If so here are some tips to help you in the buying process.

Before you go, know how much you can afford! Here is a good example,

– A car payment is approximate $20 per $1,000 of the vehicle price. Example – $15,000 = $300 per month
– Do not tell the salesman what payment you want!

Also, know what kind of car you would like to have. If you don’t have a clear idea the salesman can direct you to a more expensive car or a car they, just want to get rid of!

Once you know what kind of car you would like search on Kelley Blue Book to see what the value is worth on your current vehicle so that you can

Also call your insurance company before you go. Some cars can make your insurance go up. If you are on a budget like we are every dollar counts!

How soon do you need that new car? If a dealer has two years of a new vehicle on its lot (say, 2014s and 2015s), chances are the older ones are going to be priced to move. The last week of the year is another good time to buy. You’ll find lots of specials and manufacturer incentives at both times of a year.
A salesman’s job is to obtain as much information as possible and earn your trust.

– Interrogation
– Profession? (Can you buy a car)
– Needs? (Which car do I want to show you)
– Do you have a specific car in mind? (Did you do your homework?/How much can I make on this one?)
– This car meets all your needs.
– It has all the feature you want.
– If you are excited, you will not notice the flaws.
– How about them Cowboys!
– Can I make a connection with you to distract you from the money?

– Remember your homework and the budget set before arriving at the dealership.
– Do NOT pay more than you are comfortable with. (Including a down payment, if desired)
– EVERYTHING HAS A MARK-UP!
– Mark-up varies depending on what cars are selling for and what they were purchased by the dealership for.

kelley-blue-book-2

So you found the perfect car…Now What, Finance Room Tips, Ask these questions below when you get in there!

– Warranty? (Mark-up!)
– What does the warranty cover?
– Can I use the warranty at other dealerships?
– GAP Insurance? (Mark-up!)
– Guaranteed Asset Protection
– What is my final monthly payment?
– If the warranty is purchased. Your payment will be affected.

Best Tips I Can Give You! Ready for this!!! Wait Til December 31st if at all possible! You WILL receive the best deal on this day I can PROMISE you. Because their annual quota deadline is here and they won’t want to pay taxes on January 1 for all the cars left of the lot!

Be willing to walk away too! Sleep On It!

 

What are your tips to successfully purchasing a car?

Share your tips on How to Buy New Car below.

Check out our other Tuesday Tips

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Save Money Using a Realtor.

Topic: How to Buy New Car

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Comments

  1. says

    Good tips. Also if you are going to need financing get pre approved from your own bank or credit union. Sometimes a dealer may be able to get you a better rate, especially if a manufacturer has is running a special such as zero percent financing. Of course that is for someone with good credit.

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