One of the most important things to remember when you are buying a car is that both you and the dealer are trying to get the better end of the deal. As a buyer, you will likely end up on the losing end of the bargain if you don’t know how to ‘buy’. An informed buyer is a happy buyer, and usually one that saves money. Cars are no longer a luxury that only the rich have for their leisure. These days owning a car is necessary just to make the commute to work. If you have to buy a car anyway, you might as well get the most for your money. The seven tips that you will find here will show you how to buy a car the smart way. 1. Buy during the Christmas holidays: so many people are looking to buy their Christmas presents, that not many of them are able to afford a new car purchase. Because of this, many dealerships are forced to up their sales strategy by offering better deals; and in many cases they are willing to break almost even just to close the deal. 2. Buy online: Shopping online is more and more popular these days. By taking your time and shopping around at various online resources, you can often get amazing deals on the car of your dreams. Just be sure to buy from a reputable company that offers testimonials and reviews and one that has been around for 5 years or more. The ones that have staying power must be doing something right. Just be sure that you read the fine print in their buying policies and bring in rebates or cheaper prices from other dealers once you have picked one. This is a great way to save even more money. 3. Bring copy of your credit score: You can speed up the buying process and get better finance charges if you have a good credit score. Having a good credit score will lower your interest rates and give you some haggling power. 4. Avoid dealership scams: bringing your credit score with you helps you avoid dealership scams that are commonly used to drive up the price. For these, dealerships will tell you that you have to pay more to get approved for financing. Don’t fall for it. 5. Avoid trade ins: Don’t bring in a car for a trade in if you still owe money on it because the dealerships will often make late payments (no matter what they say) and you will be charged plenty of late fees. 6. Be wary of requested deposits: You should never agree to pay any more than $500 or so on a car. Sometimes they ask for a deposit because they have to order a service for your car. Also pay with a credit card so that in case the dealership tells you that it will cost more than they thought, you can keep track of all amounts deducted; whereas if you pay by check, that money is just taken. 7. Don’t buy out of desperation: Buying a car when your desperate is a sure fire way to be taken advantage of. This means don’t wait until your car is dead before shopping because your rush will cloud your judgment. Basically, if you take your time to shop around and show up prepared, these car buying tips can make you come out on the winning end.

If you’re thinking about a purchase or just looking for a little advice, this guide can help. The following information will help you begin to research, compare, build, and price new cars quickly and conveniently. In the end, you’ll get better prices on any of the models you are interested in. That means, for example, obtaining multiple quotes, from multiple dealers, before you ever step foot in a dealership. (Of course, you can do it all via the Web. ) Having at least three different quotes during negotiations gives you a distinct advantage. Think of these quotes as a reference point – the difference between a good offer and a bad one.
In less than a decade, buying new cars has become a much easier process via the Internet. There are two types of sites. The first will sell you new cars directly. The second doesn’t sell directly, but will provide referrals to hundreds of the most credible dealers. Both sites, however, are going to save you money. They’ll display invoice, MSRP, options, incentives and rebates clearly. The most credible online resources will have no hidden fees and virtually eliminate the inevitable haggle with salesmen.
But there’s more. The following is a step-by-step breakdown of the entire buying process from beginning to end.
New Car Buying Guide Step One – Research prices online
Search for new cars to determine what average prices are, so you know the difference between good and bad offers. Be sure to do thorough research, so that you’re paying a price near the invoice and never over the average MSRP. Many sites offer invoice pricing as well.
New Car Buying Guide Step Two – Request price quotes
After figuring out fair prices, request free quotes for your favorite new cars from as many credible dealers as possible – you can do this online. Afterwards, the most qualified companies will have their dealer internet sales managers contact you, requesting more details on the new cars you may be interested in purchasing. Request prices with all applicable taxes and charges included (not simply the MSRP).
New Car Buying Guide Step Three – Get your credit report
Your credit score is what is used to determine the APR you’ll pay on your loan. You should get a copy to ensure there are no errors, and that you are receiving the rate you deserve.
New Car Buying Guide Step Four – Get rate quotes
With your FICO score in hand, you should apply to online lenders for the best auto loan rates. Your bank, other banks, other lenders, the dealership, and even your family. Shopping around for financing can save you thousands over the life of your loan.
New Car Buying Guide Step Five – Research insurance companies
You should research insurance companies thoroughly as well. Some specialize in offering plans to people with not-so-good driving records and others (sometimes the same company) offer less expensive plans for drivers with better-than-good driving records.
New Car Buying Guide Step Six – Get insurance rate quotes
Insurance can be expensive, especially if you’ve been unlucky in the past with accidents or citations, but it is necessary precaution. Request quotes from the preferred companies you found, and much like the search for the lowest car price and loan rate quotes, pick the plan that offers the best protection for the most reasonable price.
New Car Buying Guide Step Seven – Figure out your trade-in value
Use Kelly Blue Book to estimate the trade-in or private resale value of your car. This will assist you when you are negotiating the new car price, as the trade in value of your current car will affect the new car price.
New Car Buying Guide Step Eight – Negotiating your new car purchase
Ready to negotiate? With the lowest quote on the make and model you chose from your list of new cars, contact your preferred dealers and see if they’ll beat it – they tend to compete with each other because they want your business. Utilizing the Internet can provide you with hassle-free process of creating a dialogue with dealers. For example, it is a lot easier to stop emailing than it is to walk out of a dealership.
This guide will help speed the entire purchasing process up. And probably, more importantly, save you money.