Experts share that between now and the new year is a great time to buy a vehicle. October, November, and December are excellent months to shop for new vehicles to make room for new inventory. Car sellers are anxious to clear the showroom to make way for brand new models. US News shares that problems of the past, such as broken supply chains, limited inventory, and high interest rates, are now largely behind us. Not only does this mean that auto dealers are ready to meet customer demand, but they are also ready to offer incentives and deals. This allows buyers to keep more of their hard-earned money in their pockets. Here are some helpful tips for buying a new car. Note that many of these tips can apply to used cars as well.
- Don’t wait until you are desperate to buy. It’s a good idea to take your time and do your research. Not only does this ensure that you are selecting an appropriate car to fit your needs and finances, but it gives you time to check out the car’s safety and performance record and features. When deciding between vehicles, it allows you to make side-by-side comparisons to fully compare car features, safety records, reliability, mileage, colors, etc. It also gives you time to get your finances in order and even shop for loans to gain pre-approval. Buying a car is an expensive decision, so take your time. Avoid impulse buying which can lead to regret.
- Understand your options. After researching the vehicles you like, take time to ascertain what type of incentives, rebates, and financing deals are out there for the purchase of a new vehicle. Know your credit score and what you can afford. Don’t forget to add the money you’ll need to cover tax, title, and registration into your calculations. Decide how much you are willing to pay for a new vehicle, what amount you wish to use for a downpayment, and/or whether a trade-in is part of the deal. Having a trade-in can sometimes complicate the deal. Per US News, “Salespeople often use trade-ins as part of a shell game. They can give you a massive value for your trade by raising the price of the new car. They can lower the cost of the new car by giving you less for your trade-in.” Know the value of your trade-in vehicle. Make use of pricing guides like Edmunds and Kelley Blue Book to get an estimate of a used car’s value based on make, model, year made, condition and history. Separate the trade-in from your car purchase or consider selling the car yourself.
- Test drive multiple vehicles. A person can learn a lot when test driving a car, thus it is crucial to the car buying process. This step mainly helps people see how well a vehicle handles on streets and highways, including acceleration and deceleration, brake performance, turns, and more. Also test drive on bumpy roads to gauge performance on rougher surfaces. Note unusual sounds that might indicate a car is not performing properly. During a test drive, you’ll get to explore comfort and legroom. Test drivers will also see dashboard features like warning indicators, heat and air, wipers, radio and so forth. Even if you’re set on one car, test drive other similar vehicles for comparison. Per BlueStar, “This will give you the best chance of separating clunkers from keepers and will help you find a safe, comfortable, and reliable used vehicle to purchase.” A word of advice from experts, make appointments for test drives so that you won’t waste your valuable time waiting around to be helped.
- Expect to negotiate. You’ve done your homework, and you know your stuff, so you are less likely to be taken advantage of by an unscrupulous car dealer. Despite this, negotiations are still typically part of the car buying process, even when buying from reputable dealers. The number one tip for negotiating is to check your emotions at the door. Remember that it is a business transaction, and nothing personal. While dealers seek to sell you a car, they also want to make money. Always be polite, but direct. Let the dealer know that you are still shopping and considering other vehicles, so that the dealer is focused on winning your business. Concentrate on the overall price of the car, and not on the monthly payment where salespeople can manipulate numbers or extend the loan. While you will want to afford the monthly payments, this method helps to ensure you get a fair deal. Note that some dealerships offer no-haggling policies. However, outside of the purchase price, buyers may still need to negotiate the value of their trade-in, financing, and add-ons. If you are typically a weak negotiator, bring someone with you who is experienced and knowledgeable in the process. The goal is not to intimidate the salesperson, but rather to provide support. A good negotiator can sometimes get a salesperson to meet their price, so it is of value to you to tap into that resource. Sometimes, high demand for vehicles may come into play, which can drive up pricing. However, because you are not under time pressure to make the deal, you hold the power. If you are not offered a fair price, be prepared to walk at this time and visit other dealerships.
- Shop multiple dealers online. Rather than shopping in person, this method is used by many people to buy cars. Buyers generally create a special email dedicated to the car-buying process. They contact multiple dealers nearby within a set parameter (where you’d be willing to drive to go get the car) to gain the best price for a vehicle. NBC’s Vicky Nguyen shares that it is an extremely effective method she uses to buy cars. Know exactly which car features you want upfront. She cautions, you must first get the price of the car in writing that you want, along with the VIN. Then ask other dealers via email to their fleet department to beat the OTD or “out the door price.” Per Bankrate, the term describes the total cash price that you will pay to walk away with the car. Though it takes time to email, you won’t find yourself in a car showroom impatiently waiting or negotiating and haggling over price, so it is a much better experience for some car buyers.
Be prepared
The process of buying cars can be pleasant when dealers are reasonable, and buyers are adequately prepared. But it can all go south if a salesperson is unscrupulous and/or the buyer is ill prepared, unknowledgeable, or a poor negotiator. Rather than being vulnerable, it’s vital for buyers to understand the process, not rush things, do their homework, and use helpful car buying tips like those described above.
Disclosure: This article is for general purposes only and is not intended as a substitute for professional advice.
