This is a guide to buying your first car. You might be asking yourself, “Why do I need this guide?” Well, it’s because the process of buying a car can often be overwhelming and scary for someone who has never done it before. We will give you 5 steps to buying a car that you will surely need!
Research the car you want to buy.
The car buying process should be different for every person. The first step is to research the car you want to buy and what options are available. This is your opportunity to figure out what car best fits you.
See if you can pre-qualify for a car loan through a credit union or online bank. By doing this, you’ll know how many cars you can afford before you shop online. You’ll also know what type of monthly payment you will have to include in your budget.
Automobile research online should be the first step in buying new or used cars. You can start by looking at cars on websites, such as Kelley Blue Book and Edmunds. You should know your buying power, credit score, financing options, and what you can afford.
Those with no experience purchasing an automobile may also help to ask for referrals from friends and family members who have recently bought vehicles. While their experiences will not necessarily mirror yours exactly, they will give you some guidance into how much money you may need to spend and what options are available that fit within your budget limitations.
Visit local dealerships.
The next thing that should happen before buying a new or used car, if possible, visit some local dealerships and see which one offers the best service; this will help later on during negotiations with them as well as allow the borrower to know how much they’re willing to pay for specific features of certain cars like interior design (leather/cloth), keyless entry/start, etc.
Decide what features and options are essential to you.
Put the list together before you start looking for cars. If possible, take your spouse or significant other with you to look at vehicles so they can give their input on what features are important to them—the more preparation that goes into buying a car, the better. Ask yourself how much money do I want to spend?
Decide an amount of cash that is comfortable for you and be ready when shopping around. You may not get all the bells and whistles but make sure it’s something reasonable considering your budget constraints like financing options, warranties, etc.
Write down all of the essential options you must have, and then prioritize them based on what’s most important to you. This will help make it easier when looking at different cars because this list can be used as an outline for each vehicle review.
It also helps if your budget is tight — prioritizing only makes more sense! You may get something better than expected or even be paid less money overall by knowing precisely what’s essential to you right from the start!
Find a reliable dealership with competitive prices and good reviews.
Get a loan from the dealership if you cannot pay for it in cash. Make sure your vehicle is clean and presentable before taking photos to post online. If you are selling, make sure to take good pictures of the exterior and interior.
List all features on your car for sale or trade-in. Be completely honest about any damages that may affect resale value. If possible, include repairs in the list price, so potential buyers know what they’re getting into!
Trade-in value is often determined by what you owe. If your trade-in value is greater than the amount owed, then it might be better to sell privately instead of trading in your car.
Do not be afraid to negotiate!
Negotiate the total purchase price, not the monthly payment. If you do not negotiate the total cost, it is like giving away free money!
Make it clear exactly what you want out of this deal before going through with anything else. Some dealerships will try tactics like “Let’s wait until tomorrow,” but don’t let them push around prices if you’ve done your research already! You can always walk away from a bad deal and find somewhere better elsewhere. There is no reason why buying should be a stressful experience.
Get pre-approved for financing before going into the dealership.
Car dealerships make more money when they sell you a car. This is because they use tricks to make the sale and get your signature, such as:
Getting pre-approved for financing before going into the dealership means there is no pressure from salespeople or managers to buy anything right away. However, you need to know what kind of monthly payment range will work for you and compare different loan amounts to avoid overbuy (or underbuy).
Getting all terms and conditions written down onto paper, so nothing gets lost in translation. If any numbers are unclear, ask questions until everything is understood by both parties involved – this includes price, interest rate, etc., how long payments will be made over time, if leasing, which options can be added to signing contract? Again, make sure it is in writing.
Do not sign any contract without reading it thoroughly because this is when the worst mistakes happen to consumers who don’t read through all of the fine print and get surprised later on with added fees or additional interest rates that didn’t exist before signing a specific agreement.
The last thing you want to do after going into a dealership, seeing a car you like, and signing a contract is to feel regret or anger with yourself for any reason.
Test drive your favorite cars before making a final decision.
Buying a new car is an exciting time for most people. It is the result of planning and saving money over several months or years to purchase your dream car, truck, van, or SUV.
Before buying a new vehicle, most consumers do some research, but many neglect one crucial aspect – taking it on a test drive. Low monthly payments tempt many customers, but it’s important to remember that there are other things you need to factor in when purchasing a car. For example, please do your research on the make of the vehicle and its safety features.
Test drive your favorite cars before making a final decision. This is where you’ll get an idea of whether this type of car will work for you or not.
Sign all paperwork at the dealer – don’t wait until later!
A car purchase is a big deal. There are multiple documents involved in buying a car, and signing them at once is more efficient for everyone.
Don’t get talked into expensive add-ons while you’re there – they will almost always be cheaper online! Consider skipping the extended warranty. Cars are built so much more reliably today than they were a generation ago, so you should be able to skip buying the extended warranty. But we realize not everyone feels comfortable doing this.
It’s hard to resist the pressure that dealers put on people when they come in wanting to buy a vehicle. But, unfortunately, these extra high-profit items are often not needed or can wait until later purchase timeframes have passed.
Before considering the purchase of a new car, it is wise to establish the amount you are willing to spend or calculate the monthly loan payment. Don’t forget that, after negotiating the car’s final price, you will need to allow some extra cash to cover tax, title, and registration in some states.
Dealerships rely on this tactic because it works so well on most consumers who do not research their options before coming onto the lot. Unfortunately, this results in significant profits being made by some unscrupulous business owners trying to make all possible money off of each sale with little regard to the buyer’s financial well-being.
In conclusion
Car buying can be a stressful experience. However, you can get the best deal possible on your next vehicle purchase with this five-step process. Hopefully, you will save money and time by following these steps in order. Of course, car dealers are there to make a profit, but you too should be willing and able to negotiate.
