How to Shop for a Car
Buying a car can be a frustrating experience whether you are looking for a new car or a used car. Car dealers are depicted as shrewd, and dealerships line the streets. Not only do you face a dealer, but you face a myriad of cars in every size, type, and price. No wonder it becomes a nightmare of confusion. But buying a car can be a satisfying experience if you know what you need for a vehicle, do the research, and learn to bargain before shopping for that next car.
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Things You'll Need
- Car reviews
- Amortization chart
- Sticker price
- Invoice price
- Trade-in value of your car
- Bank check
Instructions
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How to Shop for a Car
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Consider your needs. Do you need a vehicle that will transport a family or other people? Is this car for commuting long distances? Do you live where winter driving is difficult? Are you a large or tall person or a short person? Do you have back problems? Will you be traveling long or short distances? Will this car be used as the primary vehicle? It's important to establish the needs and not the wants. Walking the car lots can be distracting because dealers put attractive cars out front to draw you toward cars that may not meet your needs. Consider gas mileage, comfort, safety, practicality and depreciation value.
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Pick four or five possibilities and then do your research. The Kelley Blue Book (kbb.com), used by banks for considering auto loans and insurance companies for claims, is available online. The Kelley Blue Book will give you the trade-in value, private party value and the retail value of a car. The retail value is the "starting point for negotiation between a consumer and a dealer" according to the Kelley Blue Book. The website also has car reviews, car rebates, and news articles on cars. Edmunds.com is another site that has similar information.Consumer Reports has a car price service accessible by this toll-free number: 1-800-693-5530. It includes all rebates and unadvertised incentives, the invoice price, the sticker price, equipment recommendations and advice on buying the car. The fee is $14. You must have the car information available, trade-in information, and your credit card when you call.
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Acquire the money from the bank. Once you have done your research and narrowed down the choices, it's time to check the banks. It doesn't mean you have to use the bank if there's a better deal with the auto company, but if you have a check already approved by a bank, you are in a bargaining position. Before you go to the bank, check out monthly payments using an amortization chart. They can be found on the Internet or your bank's website. Determine how much is your limit and have the bank establish that limit before you go shopping.
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Grab a buddy and go car shopping. Never go alone and don't let any salespeople separate the two of you. It's more difficult for the salesman to work with two people than one. Don't tell them you are considering a trade-in. You need some prices without a trade-in price. Trade-in prices seem like good deals because your trade-in will look great, but the price for the car goes up as well. Give them an offer, and if it is refused, that's OK. If you start to leave, they may call you back. If not, leave just the same. Within a few days, you may get a call, and if you don't, move on. There are enough dealerships to do business with. Don't rely on one dealership. If you finally have an offer that is within a few hundred dollars of your offer, consider it. Once you have agreed on a price, then you can tell them you have a trade-in.
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Consider selling your used car privately. If the trade-in offer does not meet your car's value, sell it yourself. When you did your research, you found your car's private sale value and trade-in value.
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