Tips for Buying a New Car

Consumers have more access to information about purchasing a car than ever before.  Because of the Internet, car buyers can research the cars that they’re interested in, learn about price, and analyze the techniques that car salesmen use.  And of course, consumers can search for the best car loans and car loan interest rates.

To start the car search, choose the best dealership possible.  Car salesmen recommend that potential buyers spend as much time shopping for a dealership as they do shopping for a car.  Customers should spend time learning about the dealer’s history, sales techniques, and whether or not they’re willing to negotiate on deals.  Much of this research can be done on the Internet, and salesmen recommend that buyers spend time on local review websites and blogs reading about the dealerships in their area.  This is one of the best possible ways to learn information about a dealership-by reading information written by their previous customers.

Next, spend some time making phone calls to three or four local dealerships.  Contact the local dealerships for interviews to better ascertain the strengths and weaknesses before committing more of your time on the showroom floor.  Pay attention to how quickly they return your calls, as well is how you were treated on the phone.  Consider this activity the car dealership’s job interview.  Your job is to evaluate how they treat you on the phone, so that you can be prepared for how they would treat you as a customer.

Do thorough research on the car you’re interested in.  Car salesmen recommend that you spend time researching the model and make of car that you’re interested in.  Again, spend time on the Internet, and find out how much the car that you’re interested in retails for at full price.  Know what you’re trade in  is worth, know what you should be paying for a new vehicle, and be prepared to stand your ground when you go to the dealership.  Also, ask if the dealership has any vehicles that have been sitting on the lot for some time.  If they’ve been unable to sell a vehicle, they may be willing to offer you a discount.

Now look into non-dealer financing.  If possible, consider financing through a bank instead of the dealership.  The dealership may have a vested interest in your financing, and will work hard to raise the amount that you are financing with them.  Instead, work with a private bank to secure financing, and then explained to the salesperson that you’ve already acquired financing.  Bank car loan rates and terms are often more desirable.  Car loans that are not provided by the dealership may also gain the advantage of providing the car buyer the option of accepting the manufacturers rebate offers instead of the manufacturer finance company loan and thus obtaining the best of both worlds – a great car loan rate and the rebate.  If you have a car that you need to sell, it may be wise to sell yourself before going to the dealership.  If you choose to trade your car in, you’re bound to lose money.  The more leg work and information that is arrived at prior to entering the dealership, the easier the process will be and the greater the likelihood of obtaining the best deal available.

Your car is an investment, so take the time to research the purchase properly.  Interview local dealers, do your research, and be prepared with appropriate financing before you ever set foot on a car lot.  A great new car purchase combined with a great car loan and your wallet will thank you.

Tags: bank car loans, car loan rates, car loans

This entry was posted on Tuesday, February 24th, 2009 at 7:54 am and is filed under Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.