Two of the biggest purchases you will make are your home and your car. An average person will have numerous cars in one lifetime. As a result, it can be nerve-wracking when it's time to go shopping for a new one. Most people are intimidated by the salesmen and are ready to be ripped off the minute they walk through the door. However, it does not have to be this way for you, especially if you come prepared.
With a little thought and research, you can walk into the dealership with all the knowledge you need to get what you want. If you have the means and determination to make your wish for one certain car a reality, then you might be driving home in this brand new vehicle.
Whether you are looking for your dream car or something that will get you from point A to B, the following tips act as a guide that will help you to accomplish your needs. Here's how to buy a new car.
- Do Research - Before you even consider stepping onto a car lot, you need to do your homework. Look at makes and models of cars on the Internet. This will allow you to find out basic new car prices and see what kind of cars will suit your needs. While it is not recommended that you set your sights on just one specific model, knowing what you want is going to make your time at the dealership go much smoother. It will be harder for a salesman to waste your time or to take advantage of you if you know what kind of car you can purchase for your budget. Additionally, if you know what you want when you go in, you are not going to feel rushed and no one is going to be able to pressure you to buy something you do not want or cannot afford.
- Pricing is important - Knowing the manufacturer's price of the cars you are interested in is good, but most dealers charge prices above this. Otherwise, they would not be making any money. For this reason you should consider checking as many local dealerships as you can find on the Internet. This will allow you to see their stock, find out the features and model numbers of cars you might want, and to see the pricing. Price is going to be one of the most important factors in buying a new car, so you will want to make sure you have done all you can to secure the lowest available option.
- Work with a dealer - Once you know what you want and you have picked a dealership, it will be time to work with a sales representative to purchase your new car. The sales representative will show you the cars, run your credit for the loan, and do all associated paperwork. Be as nice as you can to the car dealers because you are going to have to work with them, or someone like them, until everything is in order.
The sales representative should be able to show you any or all of the cars on the lot that you are interested in purchasing. Additionally, auto dealers should be able to take your car on a test drive and answer any questions that you might have about it. As long as you have done your homework you should be fine. It is much harder to take advantage of a person who is well-versed and knowledgeable in the field.
- Go on a test drive - You should never buy a car without driving it first. It is important that you know how it handles and whether or not you are comfortable driving one car more than another one on the lot. Choose a few of your favorite models and ask if you can test drive them. Even if you are only going around the block, you should be able to tell how smoothly it runs and how easy it is for you to handle the vehicle. All of these things should play a role in what car you are going to purchase.
- Prepare to negotiate - Just because a dealership has a certain price listed, it does not mean that you have to pay that price. If you choose to walk out of a certain dealership, they will be well aware that you are able to go to another dealership and give them all of your money. A good dealership will do what they can to avoid that from happening.
Your first offer should be something less than you are willing to pay, but still within the realm of reason. This means that if they accept your first offer (usually they won't), you will have more money than you had hoped for. Of course, if they do not accept your first offer, you can still counter with another offer closer to what you are willing to pay. Chances are, the deal will be taken and the new car will be yours.
As a rule of thumb, do not try to negotiate a price over 20% off. This is usually the dealership's cut of the profit and is necessary to maintain their business. However, many dealerships have been known to shave between 10-15% off the price of a new car. If for some reason the dealership is unwilling to negotiate, you should thank them for their time, and then inform them that you will be moving on to another dealer. Chances are, they will stop you and offer a lower price that is more suited to your taste and budget.
- Fill out all the paperwork - Once you have reached a fair price for your future new car, it will be time to put all the credit information through. This is when you will pay your down payment, if you have one, and will learn about interest rates, payment options and the terms of your future car loan. As you fill out the paperwork to be approved, and before the paperwork is finalized, you should ask any questions you have about the loan or the rest of the buying process.
You will need to secure insurance for the vehicle, if you haven't already, and transfer your plates as well. You can handle this through any local car insurance agency and through the department of motor vehicles.
- Drive your car home - As soon as you have set a price and signed the loan, you will be ready to drive off into the sunset in your brand new car. As long as you are prepared when you visit a dealership, you will be positioned with the best of them to get a deal unlike any other you would find.
Buying a new car can be a piece of cake with these new car buying tips. With a little hard work, some research, and time to test-drive some cars, you will be able to find a car that is the best possible choice for you and your bankbook.