Buying a new car can be one of the best - or worst - experiences of your life. Most folks only get to buy a new car every 3 or 4 years, so it’s a pretty big deal when it’s time to upgrade. This goal of this website is to teach you how to make the process go as smoothly as possible.
Get a quote before you go to the dealer
You can spend hours haggling in a salesman’s office, or minutes getting price quotes online - it’s your choice. Remember, you want to work smarter, not harder. With the age of the internet and online price quotes, there’s no reason to go to a dealership unarmed. Some of the best places to get quotes are Edmunds, Dealix, Cars Direct, and AutoUSA. Several price quotes allows you to see what a particular car is selling for, and helps keep you from paying too much for your new car.
Know what your trade is worth
One of the biggest money-makers for a dealership is the trade-in. Most people have no idea at all what their trade is worth. They do their research on the new car, but always forget about the trade-in! This mistake can cost you thousands of dollars, so don’t make it. There are online resources such as KBB, NADA, and Edmunds that can give you a rough idea of what your trade is worth. Only a hands-on appraisal with a written cash offer is certain though - this is where CarMax comes in handy. If you can spare about 45 minutes, drop by your local CarMax, and they’ll inspect and appraise your car, and give you a written cash offer to buy it. Now, you know exactly what your car is worth, with no questions.
Get financing before you shop
Many dealers advertise great financing offers, that seem too good to be true. Often they are too good to be true, and require absolutely perfect credit to get the advertised rate. And to top it off, they may only offer attractive rates on a very short term note, that would put your payment out of range. What should you do? Get a “blank check” loan approval before you ever visit the dealer. Simply fill out the application online, and once it’s approved, the bank will overnight you a blank check, that is good for up to your approved amount. So you know how much you can spend, the interest rate, and your payment, before you even start car shopping.
Don’t be a payment buyer
The salesman will always ask you this question, or one that sounds just like it - “What would you like your payments to be?” This is a trap - Don’t fall into it! When you resign yourself to a set payment, it becomes all too easy for the salesman to build profit into the deal. You won’t know how much you’re paying for the car, how much they’re offering for your trade, what the interest rate is, or even how many months you’ll be paying. Payments are important, but don’t ever become a payment buyer. If you got your financing up front like you should have, this is easy to avoid. As far as the dealer is concerned, it’s like you’re paying cash.