Purchasing a new car can be frightening. There is a lot to take into account, especially the price you want to pay. Looking at the sticker price can be baffling and buying a new car is an emotional experience. Most people are excited to drive off in a shiny new car. This is why you should be careful about buying a new car without first deciding what you want to pay and how much you can afford. The following car buying tips will help you when you walk into the showroom:

  • The actual purchase price will not be the same as the sticker price. Make sure to base your starting price on what the dealer paid for the car, not the sticker price. You can find this information on the internet and in car buying guides.
  • Make sure to do your research. It’s much harder to negotiate the price you will pay for a new car when you don’t have the knowledge you need. It’s also easier to let yourself get talked into to something when you haven’t done your research. You can find the information you need in Consumer Reports, as well as in buying guides in the bookstore or online.
  • Make sure you already have financing lined up before you enter the dealership. You can get pre-approved through your local bank, credit union or other online sources. If you know what you can afford ahead of time, you will be less likely to overspend.

Ask the dealer what is included in the warranty if you are looking at a specific car. It’s wise to research whether you should purchase an extended warranty to protect your purchase.

Published in by CARCHEX on November 13, 2014