For many, the prospect of buying a new car can seem about as attractive as sitting in rush-hour traffic. But, getting from point A (no car) to point B (new car) doesn’t have to be a long, slow slog filled with detours. While it may never be a joy ride, these tips can help make the trip go more smoothly.
1. Get pre-qualified for a loan.
This is your license to drive, of sorts. It’ll let you know how much you can borrow and at what interest rate, which will help you determine how much you can afford in monthly payments. Let the LendingTree loan payment calculator, http://www.lendingtree.com/smartborrower/Mortgage-Calculators/Loan-payment-calculator.aspx, help you with the math.
2. Bring a road map.
Get as educated as you can about what cars you are interested in and how much they typically cost before you go to the dealerships. The Internet has made all this information easily accessible to consumers. Narrowing your search to three favorite models will make your car-buying expedition manageable.
3. Don’t forget your passengers.
Many people like to bring a car-savvy friend or relative with them as an ally when negotiating with car salesmen. But if you’ve done your research (see Tip #2), then this isn’t nearly as important as letting family members and others who will frequently be riding or driving in the car tag along.
4. Get the timing right.
The hottest car-buying season is the summer, but it might not be the smartest. Most experts say it pays to wait until near the end of the model year, typically between August and October, when dealers are trying to make room for new models. Regardless of the season, try to do your shopping at the end of the month (when dealerships are pushing to meet their sales goals) and in the middle of the week (when business is slow).
5. Separate old from new.
Keep price negotiations for your new car separate from those for your used trade-in. Remember that you don’t have to take the price the dealership offers you for your trade in. You can shop it around to other dealerships or sell it privately, which is more of a hassle but may yield you a higher price. For tips on selling your car on your own, read Ask an expert: Selling your car privately.
6. Read the fine print.
Look for hidden costs listed in your contract such as delivery and handling charges or advertising fees, and ask your sales person to explain them. Some fees may not be negotiable, but some are.
7. Give it a final inspection
Looks for dings, scratches or other damage before you leave the lot with your new car. Get any promises to make repairs in writing, then hit the open road in your new, smart ride!
Related Articles