Steps to Buying a New Car

Buying a new car is a complicated process. Particularly for the first-time buyer, knowing how to proceed from window shopping to driving the car off the lot can be difficult. Seeing an overview of the steps to buying a new car can help first-time buyers and seasoned veterans alike make the right decisions when purchasing.

Research

Before even setting foot on a lot it is important to do your research. You should research both the car or cars you're interested in buying, but also the broader car market. Researching your car ahead of time will give you the opportunity to choose all your options before you go shopping. You may know what make car you want. You may even know what model you want. However, even within a specific model there are a number of variations to consider. Don't forget to research the car you already own if you plan to trade it in.

Financing

First figure out your budget so that you know the maximum you can realistically spend. Have a substantial down payment. This helps you bring down the price during negotiation by having a good amount of cash up front and saves you money on interest by making your finance charges and monthly payments lower.

You should have your financing in order before you start negotiating price. Dealer financing plans are some of the worst deals in town. You are much better off securing your own financing.

Vising Dealerships

You should never be satisfied with visiting a single dealership. Instead, shop around and don't be afraid to walk off a lot in the middle of negotiation if you aren't satisfied with the way things are going. You should also not be afraid to let dealers know that you are shopping around, as this will give them more incentive to provide you with specials, rebates and add-ons. The dealership visit is a very important part of buying a new car, because no matter how much research you do, nothing substitutes for taking the car for a test drive. Remember that no matter how much you love a car, it will be there several weeks down the road.

Purchasing

After you have taken test drives and considered your options it is time to make a final decision about what kind of car you plan to drive. Negotiation with a car dealer is a bit like a courtship. You want to appear interested, but not too eager. Remember that add-on items generally have a very high markup, so don't be shy about negotiating a better price on the extras.