Know What You Need: Consider factors like the size of the car, fuel efficiency, safety features, and your budget.
Research Models: Look into different makes and models that fit your criteria. Check reviews, reliability ratings, and long-term costs.
Compare Prices: Use websites like Kelley Blue Book, Edmunds, or TrueCar to understand the fair market value of the car you’re interested in.
2. Set Your Budget:
Determine Your Budget: Include the cost of the car, insurance, maintenance, and fuel. Stick to a budget you’re comfortable with.
Consider Financing Options: Explore different financing options and get pre-approved for a loan if possible. This can give you a clearer picture of your budget and strengthen your negotiating position.
3. Check Vehicle History (For Used Cars):
Obtain a VIN Report: Use services like Carfax or AutoCheck to get a detailed history of the car, including accidents, ownership changes, and service records.
4. Test Drive the Car:
Inspect the Vehicle: Check for any obvious signs of wear or damage.
Test Drive: Pay attention to the car’s handling, braking, acceleration, and comfort. Drive on different types of roads to get a comprehensive feel.
5. Negotiate the Price:
Know the Invoice Price: This is the price the dealer paid for the car, and it’s often lower than the MSRP (Manufacturer’s Suggested Retail Price).
Negotiate Up from the Invoice Price: Start your negotiation based on the invoice price, not the MSRP.
Be Ready to Walk Away: Sometimes the best way to get a good deal is to show you’re willing to leave if the price isn’t right.
6. Review the Contract Carefully:
Check for Add-Ons: Make sure you’re not paying for unwanted extras like extended warranties, rustproofing, or other add-ons.
Verify Terms: Ensure that the loan terms, interest rates, and monthly payments are as agreed upon.
7. Understand the Trade-In Value:
Get an Estimate: Research the value of your trade-in vehicle using resources like Kelley Blue Book or Edmunds.
Negotiate Separately: Treat the trade-in value and the new car purchase as separate transactions to get the best deal on both.
8. Consider the Total Cost of Ownership:
Insurance Costs: Get insurance quotes before buying to ensure the car fits within your budget.
Maintenance and Repairs: Some models have higher maintenance costs, so consider this.
9. Be Aware of Seasonal Sales:
End of the Month/Year: Dealers often have sales targets to meet and may offer better deals at the end of the month or year.
Holiday Sales Events: Look out for promotional events during holidays like Labor Day, Black Friday, or end-of-year clearances.
10. Trust Your Instincts:
Feel Comfortable: If something feels off during the process, whether it’s with the vehicle, the dealer, or the terms, don’t hesitate to walk away.
