How Do I Buy a New Car?
- 1). Decide whether you are going to finance the vehicle or pay cash. If you plan to obtain a new loan and want to get the best interest rate available, make sure your financial house is in order.
-Check your credit report for inaccuracies. (You can obtain a free copy of your credit report from each of the three major reporting agencies every 12 months by visiting annualcreditreport.com.)
-Dispute any incorrect information that may be affecting your score.
-Pay your credit card balances down. According to Liz Pulliam Weston of MSN Money, paying down revolving balances, such as credit cards, can drastically increase your credit score. - 2). Figure out how much you can comfortably afford, before you start looking. Also keep in mind that you may pay a higher insurance premium on a newer model car.
- 3). Research what kind of vehicle you are interested in and what options are available. Are you looking for a fuel-efficient car or something more rugged that will get you through a winter storm? Are power locks and a navigational system important?
- 4). Read auto reviews and ratings at websites such as Edmunds.com and autos.com. Both websites offer professional and consumer reviews of thousands of cars and trucks.
- 5). Visit local dealerships and test drive the vehicles you are interested in. According to Consumer Reports, test driving a vehicle will help you detect any problems with the car's drive train, steering, suspension, brakes and other important systems.
- 6). Obtain additional information about the specific vehicle(s) you are interested in through vehicle history reports such as CarFax or AutoCheck. Both companies provide information such as prior ownership and accident history.
- 7). Find out the invoice price (the price the dealer pays.) The difference between the invoice price and the sticker price is usually thousands of dollars; use this knowledge to renegotiate the sticker price.
Kelley Blue Book does a great job at estimating invoice pricing. - 8). Begin negotiations with the dealer of your choice. Make sure you take advantage of any customer rebates or dealer incentives available. When you have come to an agreement regarding the price; sign the paperwork, insure the vehicle and enjoy your new ride.
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