Quick Guide to Buying a New Car
If I am completely honest, I would say the idea of purchasing a new vehicle makes me groan and roll my eyes. I know in advance that it will be a long progression of back and forth negotiating and I really wish the entire process of purchasing a new vehicle were so much easier.
Here is a list of several important vehicle purchasing steps that I followed to assist me in the purchase of our new vehicle. These simple steps helped me get the best deal, save money, and alleviated the stress that I was dreading.
Quick Guide to Buying a New Car
PREP FROM HOME
CHOOSE YOUR VEHICLE
Do the research ahead of time and check out what type of vehicle(s) you want and one that meets all your needs. Look up the Invoice price and the TMV of the vehicle and begin your search for dealerships in your area to locate the exact vehicle you want. Visit forums to read previous owners reviews of the vehicle, this will give you more insight on the vehicle as some of these opinions are very valuable.
Visit the dealership that has the vehicle you have selected and test drive the vehicle. I would suggest to test drive a higher end and a lower end as well for comparison. Verify all the options and availability with the dealer.
Before walking into any dealership, be fully prepared with how much you will spend and what loan amount you are approved. Having a final dollar amount will keep the stress levels low and you will be able to better negotiate the final price. Compare interest rates between banks, credit unions and the dealer. If you have been pre-approved, the dealership may even offer you a better financing deal like low- or no-interest financing.
BEST TIME TO PURCHASE
Right now is a great time to purchase a new vehicle as dealerships sell off cars at lower prices to clear space for the new models. During the months of July through October, dealerships may offer better sales deals as new models are coming into their inventory. In the months of September and October, specifically, dealerships offer end of model year for many cars. New inventory is arriving and dealers and manufacturers want to get rid of previous year models to make room for new ones.
Another great time to purchase a new vehicle is the end of the quarter. Sales persons usually have quarterly goals that must be met in order to receive specific bonuses -- that are tied to the number of sales. Additionally, purchasing a new vehicle in month of December would likely garner a great sales deal. Dealerships are not as busy due to the holidays and they will offer great end of the year deals to boost up their balance sheets.
Being fully prepared is essential, but there is the need to negotiate as the sales person will still want to obtain the highest sales price they can to make a higher profit. Fully expect the negotiations to be a back-and-forth process, but remain confident throughout. Ask to speak to a manager if the negotiations are not going in the direction you desire. Additionally, be fully prepared to walk away from the vehicle of your dreams if the dealership is unwilling to come to agreeable purchasing terms.
Purchasing a new vehicle is a major purchase and it is important to complete your research ahead of time in order to obtain the best price. If you follow my quick guide to buying a new vehicle, you will be likely to get the best price possible on your next new vehicle.