How to Buy a Car

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Step 3: Be Prepared

Unless you buy your car from an online site (used cars or an auction site only), a certain amount of negotiation will be necessary if you want the lowest price possible. Remember that the car dealer is doing his/her job, which is to make money. That said, not all car salespersons are corrupt or out to scam you. Treat the dealer with respect and simply walk away if you get a bad vibe or are being treated disrespectfully.

Read everything you sign. Carefully review loan applications and sales documents and never allow a dealer to rush you.

Get quotes from several dealers either online or on the phone. If a dealer is hesitant to fax or email you a quote, don’t even bother with them. You no longer have to spend an entire weekend driving around to dealers. Visit the top three dealers that you contact and be ready to negotiate.

Go to the dealer with all the necessary documents: copies of your credit report and score (you may have to pay a fee for this but it’s worth it), copies of car quotes and invoice prices you printed from websites, your vehicle registration (to determine your tax rate), title or loan information, if you have a trade-in, and trade-in quotes printed from reputable websites. Also bring with you loan rates and extended warranty offers, especially if have a low credit score.

Jessica Bowen

February 14th, 2007 at 6:35 am

This is a very neat website and it really has helped me. Whomever created this really deserves a thumbs up. Thanks for the help, and keep up the good work!

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Kristina

February 14th, 2007 at 1:44 pm

In regards to the article “How to Buy a Car”. What if you have very little or no credit at all.I live in the city and own a truck and I would like to get something with much better gas mileage, however, I have barely any credit because I just turned 18 four months ago and haven’t established enough credit yet. I can’t keep wasting my money on gas, and it goes quick when you live in the city. Does anyone have any suggestions.

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John

March 2nd, 2007 at 11:39 am

Kristina,

sounds like you would benefit from a co-signer, but figure out about how much you are spending on as in your truck. if your truck is paid for, then your only expense is insurance and gas. if you get a car with better gas, you will now have a car payment, plus gas and ins. if you get about 15 mpg with your truck and spend say $200 a month on gas, then get a car with a $300 payment, and then spend only $100 on gas, then you just doubled your monthly bill for car and gas.

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SScott

August 23rd, 2007 at 9:24 pm

I find this very interesting, I actually purchased a vehicle in May and the dealer used the line “We’ll pay off your trade-in car loan.” Almost caught me off guard, but thankfully I caught on before it was too late.

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Mike Wedge

December 19th, 2007 at 10:17 am

This was a good article actually, very interesting. I’ve been offered that before too, and it nearly caught me out - good job I didn’t take it.

Living Apartments

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Mike Wedge

December 19th, 2007 at 10:20 am

Very good article, I totally agree.

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Simon Jones

December 19th, 2007 at 10:21 am

Yeah, this was a great article. Helped me immensely, thanks!

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JamminredheadEd

July 2nd, 2008 at 4:10 pm

I like using Edmunds.com for my car research. You not only get the MSRP and invoice, but their assessment of the “True Market Value” of the car and what other people are paying for the car. It also details the true cost of ownership over a period of 5 years.

When shopping for a car, have a price quote from one dealer and use that to bargain at dealer number 2. Present dealer 1 and 2’s offers to number 3. If want you to make ‘em sweat, go to dealer 3 and call dealer 1 and 2 and get a bidding war going.

Keep records of the offers on paper that you keep. Sales people “lose” lots of paperwork.

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