Buying a New Car with Confidence
Buying a new car should be a fun process. Making a major purchase like a car gives you a chance to explore new possibilities and maybe even simplify and enhance your life. The modern car is about so much more than a means of getting from point A to point B. Buying a new car is a major responsibility, but more importantly it’s a great opportunity.
Here are the top three things you need to do now before you head out to buy a new car:
1. Take the buying process seriously.
2. Do your research.
3. Make important decisions before you visit any dealership.
Take the buying process seriously. Buying an automobile is a major purchase so you don’t want to make the decision on a whim. Sure, taking the process seriously will take some time and effort, but any purchase that requires thousands of dollars of your hard earned money is worth your attention. Consider the mere fact that you will most likely not go through this process again for a few years, so it’s important to make a choice you won’t soon regret.
Do your research. Your research should center on three key areas: cars, dealerships, and your financial health.
Car Research
Start narrowing down which type of vehicle will best fit your needs. Are you after an SUV, a minivan, a sedan, a compact, a hybrid, an electric, a pickup truck, or something else entirely? Once you narrow down the type that will best fit your needs and most of your wants, get online and start comparing the available models in your chosen category. Look at images of various cars. Compare their features. Do some cost research. Read reviews online. Don’t forget to check out gas mileage, safety rankings, and consumer reports.
Also, spend some time researching additional features, packages, insurance options etc. that may be available on your vehicle of choice. A quick search online will help you figure out what add ons are currently common at many car dealerships. Make sure you understand the terms of common warranties as well.
Once you have narrowed down your list, get out and spend some time scoping out your choices in real life. You maybe haven’t noticed some of the models on your list on the road before, but you will certainly start to notice them now.
Do your best to narrow down your list to a few specific options. Having too many options will most likely make your experience at the dealership confusing; however, having only one option could lead to difficulty too. If you test drive your dream car and are underwhelmed with the actual performance of the car, it’s always good to have a backup option or two.
Dealership Research
Check out the online reviews for dealerships in your area. Ask your friends, family, coworkers, and neighbors about their experiences with various dealers. Once you find a few dealerships that have received positive reviews, check out their company websites. Many dealers post promotions online that you won’t hear about unless you mention their website when you visit. Don’t be afraid to price shop for your desired model online as well, just don’t forget to do your research on any dealership you are considering.
Your Financial Health Research
Run the numbers on your current financial status. Here is a financial checklist to complete before you visit any dealership:
What is the current blue book value for my trade in? ________
(You can use online tools to figure out this number.)
How much will my car insurance monthly premium increase? ________
(Contact your insurance agent or check your policy options online.)
How much can I really afford for a monthly payment? ________
(Be realistic based on your other financial obligations.)
What is my credit score? ________
(You can also get this number online. Check for discrepancies.)
What financing terms are available on a new loan from my bank/credit union?
______________________________
What terms are available on a new loan from another bank/credit union?
Option 1 ______________________________
Option 2 ______________________________
Option 3 ______________________________
Make important decisions before you visit any dealership. After you have completed your research, you should have a pretty good idea of where you will go, what you will buy, and how much you can spend. Make sure you decide ahead of time if you are open to any additional features, packages, warranties, insurance options, etc. Don’t ever rely on the salesman to educate you on whether or not you need these extra add ons. If you are purchasing a vehicle with your spouse, make sure you are on the same page about the desired outcome.
Important Advice
Recently, I visited RC Automotive, and asked them for some really candid advice on purchasing a new car. I think the response I received is especially helpful: “Don’t ever give in to the pressure to act right away. Be willing to walk away from a dealership. Never buy on your first visit to the dealer, even if you think you’ve found the perfect match. Sleep on it instead.”
Remember that buying a car is a great opportunity and should be a fun experience for all involved. Don’t forget to take the process seriously, do your research, and make key decisions ahead of time. Following these simple tips will get you out on the road in your new car with confidence!
Share this:
Category: Car Purchase
