Tips for Buying a New Car

If you are looking to buy a new car, you may think it is quite simple. Find the car that you want and buy it. Unfortunately, it’s much more complicated than that. Buying a car would be easy if it there were no commission involved for the salespeople. Unfortunately, that’s not the case and you have to fight to get a car for the price that you want. Below are basic steps to buy a new car (many of which will apply if you are leasing a car as well).

1. Find Your Car: The first step is to find the car that you want to get. This means test-driving, reading reviews, sitting in cars, and doing your homework. Driving the right car is essential to your success, so it’s important to find the right car. It may not be possible to narrow down your car to one option, but if you have a couple possible options that you would be happy with, that is a success.

2. Shop Around: After you have narrowed down your selection, you need to shop around. Don’t just go to the first dealership and say this is what I want. If you are too willing, they won’t negotiate on price. You will be giving them all the leverage. Instead, shop around and try to get the best deal possible. The more numbers that you know, the more fire power you have in negotiating.

3. Set a Price Limit: Once you have a good understanding of the list prices, set your price limit. Make sure that it is under the prices and don’t go any higher no matter what.

4. Negotiate! It may be difficult, but you have to work for every dollar that you want to keep in your wallet. Sales people are great at pulling out just a little extra money. If you stand firm and know when to give in without giving up too much (and without going over your price limit), you will get a better deal. It may take longer to get it done, but it will benefit you in the long run.

5. Recognize the Commitment and Costs: Understanding what you are signing and how it will affect you is important. The last thing that you want to do is to jump into a financial commitment without understanding the consequences.

Last, but certainly not least, enjoy your car. It should be something that you drive for a long time and there’s no reason not to celebrate.

One Response to Tips for Buying a New Car

  1. I used to work with a car dealership software company and can also throw in a few tips. Work out the deal online and PRINT IT before going in. If you are financing, ask them if you can get a lower rate by buying the extended warranty. If you don’t want the warranty, tell them to take it off and keep the APR rate (if it is available with the warranty, it is available without it…the sales guys just don’t want to give up commission unless it’s being replaced). Everything is negotiable. Everything.

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