10 Things To Know Before Buying A Car

Everyone loves a new car, but no one enjoys the buying process. Buying a new (or used) car only occurs every few years for most people, so it’s difficult to get any practice. I sold cars for quite a while and there are things a consumer can do to make it much less stressful, both on them and their wallets!

1. Know what you want – It seems self-explanatory, but most people don’t know what they want before they step on the lot.  They have a vague idea that they want either a car or truck, but most of those decisions are made “on the fly,” without any research. These people pay more. Information is key, information is power. I’m not saying “don’t be a little flexible,” but (especially with new vehicles) have it narrowed down to just a couple choices before you arrive.
2. Shop the Internet Department – When shopping prices, deal with the Internet Department. They are often given lower prices to build traffic in the door. Be specific about what vehicles and options you want. And always request “Out The Door” pricing (includes all fees and taxes.)
3. New or Used? – Both have their advantages and disadvantages. New is priced higher, but there with the dealer and factory warranties, it is less stressful to own. Buying used (or pre-owned) can get you much more vehicle for your money, allowing access to higher end brands and options.
4. Know what you want to spend – Prepare a reasonable budget that includes both down and monthly payments. This will be your max, stick to it. Keep I mind, generally every $5000 financed is about $100/mo in payments.  So it would be unreasonable to want to pay $500/mo for a $40,000 vehicle unless there is a substantial down payments.
5. When discussing monthly payments, be aware of the term of the loan – A dealer can offer the $500/mo payment you want, but they may try and make it a 72 month or 78 month loan to do it. Be wary of a 6 or 7 year loan on a vehicle, it may make it difficult to trade later on
6. Trade ins – If you are trading in a car, be sure to know what it is worth and exactly what your pay off is.  If you use Kelley Blue Book or another used vehicle pricing source, beware that very few vehicles classify as “Excellent.” Look more toward the “Good” and “Fair” prices. That said, dealers will purposefully “low ball” to build more profit in the deal. It is also recommended to hold off on discussing your trade until you have your new car deal decided upon.
7. Look informed – Remember that research you did? Print it out, put it in a manila folder and take it with you. This lets the dealer know you have done your homework.
8. Test drive more than one vehicle – You would be surprised at how many people but the first vehicle they test drive. Every vehicle is different, especially pre-owned, and something that bothers you a little know will bother you more as time goes by.
9. Buy at the end of the month – Dealers get monthly incentives when selling new cars. If it is the last day of the month and they are 1 car short of hitting their incentive, you can make a great deal!
10. Walk away – If you don’t fell you have the best deal, simply walk away. If there is even a slight chance at a better deal, they will chase you down.

These are basic steps and strategies to get you the best deal. One last piece of advice, if you know you are getting the best deal, don’t be afraid to buy.  Have you had any good or nightmare car buying stories?  Please leave them below!