Car Buying

If you're thinking about a purchase or just looking for a little advice, this guide can help. The following information will help you begin to research, compare, build, and price new cars quickly and conveniently. In the end, you'll get better prices on any of the models you are interested in. That means, for example, obtaining multiple quotes, from multiple dealers, before you ever step foot in a dealership. (Of course, you can do it all via the Web.) Having at least three different quotes during negotiations gives you a distinct advantage. Think of these quotes as a reference point - the difference between a good offer and a bad one.

In less than a decade, buying new cars has become a much easier process via the Internet. There are two types of sites. The first will sell you new cars directly. The second doesn't sell directly, but will provide referrals to hundreds of the most credible dealers. Both sites, however, are going to save you money. They'll display invoice, MSRP, options, incentives and rebates clearly. The most credible online resources will have no hidden fees and virtually eliminate the inevitable haggle with salesmen.

But there's more. The following is a step-by-step breakdown of the entire buying process from beginning to end.

New Car Buying Guide Step One - Research prices online - Search for new cars to determine what average prices are, so you know the difference between good and bad offers. Be sure to do thorough research, so that you're paying a price near the invoice and never over the average MSRP. Many sites offer invoice pricing as well.

New Car Buying Guide Step Two - Request price quotes - After figuring out fair prices, request free quotes for your favorite new cars from as many credible dealers as possible - you can do this online. Afterwards, the most qualified companies will have their dealer internet sales managers contact you, requesting more details on the new cars you may be interested in purchasing. Request prices with all applicable taxes and charges included (not simply the MSRP).

New Car Buying Guide Step Three - Get your credit report - Your credit score is what is used to determine the APR you'll pay on your loan. You should get a copy to ensure there are no errors, and that you are receiving the rate you deserve.

New Car Buying Guide Step Four - Get rate quotes - With your FICO score in hand, you should apply to online lenders for the best auto loan rates. Your bank, other banks, other lenders, the dealership, and even your family. Shopping around for financing can save you thousands over the life of your loan.

New Car Buying Guide Step Five - Research insurance companies - You should research insurance companies thoroughly as well. Some specialize in offering plans to people with not-so-good driving records and others (sometimes the same company) offer less expensive plans for drivers with better-than-good driving records.

New Car Buying Guide Step Six - Get insurance rate quotes - Insurance can be expensive, especially if you've been unlucky in the past with accidents or citations, but it is necessary precaution. Request quotes from the preferred companies you found, and much like the search for the lowest car price and loan rate quotes, pick the plan that offers the best protection for the most reasonable price.

New Car Buying Guide Step Seven - Figure out your trade-in value - Use Kelly Blue Book to estimate the trade-in or private resale value of your car. This will assist you when you are negotiating the new car price, as the trade in value of your current car will affect the new car price.

New Car Buying Guide Step Eight - Negotiating your new car purchase - Ready to negotiate? With the lowest quote on the make and model you chose from your list of new cars, contact your preferred dealers and see if they'll beat it - they tend to compete with each other because they want your business. Utilizing the Internet can provide you with hassle-free process of creating a dialogue with dealers. For example, it is a lot easier to stop emailing than it is to walk out of a dealership.

About the Author

Colin Ayres is a writer for Harbor Credit. He began his career shortly after graduating from Yale University, where he soon realized that Liberal Arts and copywriting have a lot in common. To read more, visit
www.HarborCredit.com
4.1.5 Rob Gruhl - How to Buy a New Car - Ignite Seattle 2007