[edit] Things to do before visiting the dealer
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[edit] Find the Right New Car
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[edit] Buy the Right New Car
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It's time to by a new vehicle is it? Good for you. This is great fun for many people, but the best way to enjoy the process is to be prepared. Some of the things you should look at doing before you visit the dealership are:
• Research the dealership
• Make a budget
• Study your finance options
• Check your credit rating
• Establish your base price
• Determine your needs versus wants
• Research the vehicles you are interested in
• Learn about the additional costs
• Determine your down payment/trade-in
• Consider the insurance costs
• Contact the dealership and make an appointment
Research the dealership to make sure you find one that you would like to purchase your vehicle from. This may seem like something you don't need to do, but you should compare the dealerships that carry the type of vehicle you are interested in.
Before going to the dealership, it is very important to have an established budget. It's too easy to fall in love with a car during a walk through the dealer's lot or while taking it for a test drive. What if this car isn't within your price range? You're budget isn't locked down, but it's been set for a reason. Don't be swayed by wants and not needs.
If you are not paying cash, you need to have researched your leasing or financing options. Figure out which one best suit your needs, lifestyles and budget. Make sure you understand the pros and cons of each option.
Before going to a dealership, you should know your own credit rating. This will help you to understand your options for lending limits, interest rates and possible monthly payments.
Set a base price before walking into a dealership. Be flexible to a point in that your base price should be 10-15% below your actual budget. This will allow you some flexibility when it comes to negotiating for extra feature or accessories if you want them included. Don't have such a bare budget that there is no room for any extras. This is likely to be your vehicle for several years and even one or two extras can increase your joy in your driving.
It's important to know what your needs in a vehicle are and to understand how your needs differ from your wants. Don't confuse the two. There are too many vehicles on the market; you need to have something to help differentiate which will be better for you. You might want a luxury sports car but you have a mini-van budget. You need to find the right car at the right price for you. Don't' rush the process.
Take the time to research the vehicles. You need to know what you are looking for before you go to a dealership. The websites of each manufacturer holds all the information you are likely to need, including, features, benefits, options, accessories, and pricing for you to look through. If you want to read car reviews check out the consumer websites as they often have current reviews and testimonials from car owners.
Once you have a good idea on the vehicle you would like to buy, then you need to research the extra costs involved in the sale. There are fees, administration costs, extended warranties and special service plans to name a few.
Are you hoping to get find a demonstration vehicle? These are vehicles drive by the dealership staff for the first 5-10,000 kilometers and then sold at a lower price. Sometimes the reduction in price is many thousands of dollars for these cars.
Are you hoping to trade in your current vehicle? If you are, do you have any idea of it's worth. A trade in changes the purchase deal of a new vehicle.
With each vehicle purchased, there is the additional cost of insurance and licensing. If you are moving up to a newer vehicle, you can expect your insurance rates to go up as well as new vehicles have higher insurance premiums attached. Contact your insurance company to get an idea of what the new rates will be.
Now that you have done your homework, it's almost time to go to the dealership. Before you do, call them, speak to a salesperson and make an appointment with that person.
Do this bit of preparation and you'll ensure a smooth pathway to your new car.
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