Getting a new car is an exciting time for most people. The thrill of driving something brand-new is something you don’t get often. However, things aren’t as simple as going to a dealer and walking away with the first car you think looks good.
Buying new cars isn’t something you should do without knowing what to look for in a car. Keep reading to learn five factors to consider when talking to car dealers.
Most people don’t buy new cars for cash, and you’re likely no different. People usually walk into the dealership and get financing there. Doing this is a mistake.
Look at your car financing options at your local lenders before going to the dealership. Your goal is to get pre-approved by other lenders to compete with the financing options a dealership offers. In many cases, a dealership will compete with your lenders and offer you a better financing deal.
2. Car Insurance
It’s nice having one of the newest cars on the market. However, this does come at a cost if you have a high-end model. You also have to consider how much your monthly insurance rate will be before you buy.
Look into buying car insurance before you decide on your new car. Make sure your monthly premium is in your price range so you don’t get stuck with a bill you can’t afford.
3. Test Drive
You can’t learn everything about a car by reading about it online or listening to a dealer. You need to get it onto the road to get a feel for things yourself.
Test driving cars is the best way to learn if a car is right for you. Any dealer should offer you the chance to take a car for a test drive. Go on one before you commit to buying.
4. Invoice Price
The invoice price is the price a car dealer pays for the car. They want to make a profit, so they’ll charge several thousand dollars more than the invoice price. If you know what they pay, you have a better idea of your negotiating room.
Keep in mind, though, that the dealer still needs to make a few hundred dollars on the deal. They’ll be willing to work with you on price, but won’t go low enough to cost them money.
5. Local Requirements
You won’t always find what you need from your local dealership. If you live near state lines, you might shop in another state to find your next car. However, you’ll need to do more work to get your car legal in your state.
Things like VIN verification are necessary if you’re bringing in a car from out of state. If you want to know more about the process, make sure to do your research before buying from out-of-state.
Now You Know What to Look for When Buying New Cars
A new car is a big investment, so you can’t afford to make the wrong choice when buying new cars. Keep the above factors above when going through your search. A little due diligence on your part will ensure you find the right car.
Do you want to learn how to keep up your new car after your purchase? Check out our blog for great tips.