Driving off the lot in a new car is often an exhilarating experience. Unfortunately, for many people, the process leading up to that moment can feel overwhelming or stressful.
The good news is, it doesn’t have to be this way. Most of us aren’t experts in buying cars, and it’s common not to know how to secure the best deal possible.
Part of the challenge stems from discomfort with negotiation, but learning to negotiate can actually make the process more enjoyable. Here are ten tips to help you feel more confident and prepared for your next car purchase.
Set a Budget
Car prices can vary dramatically, even among similar models. Before you begin shopping, take the time to determine what you can afford. Set a firm price limit that you absolutely won’t exceed.
Remember to account for more than just the car’s base price. You’ll also need to budget for taxes, dealership fees, delivery charges, and other potential hidden costs.
Additionally, think about the cost of insuring the car. That flashy Camaro may look appealing, but its insurance premiums could be much higher than those of a more practical vehicle.
Search for Reputable Dealerships Using Online Tools
The internet has made car shopping much simpler. Before committing to buy a car based solely on price, research multiple dealerships.
While price is an important factor, it’s equally critical to find a dealer with a solid reputation. Tools like AutoSMART, an online car shopping platform offered by Vantage West, can help you compare options and locate trustworthy dealers.
Once you’ve found the right vehicle, you can even get pre-approved for a loan through Vantage West.
Bring Along a Knowledgeable Friend
Though this tip may seem straightforward, many people overestimate their negotiation skills and falter under pressure. To safeguard yourself, bring along a friend—preferably someone well-versed in cars.
They can ask questions you might not think of and help identify any blind spots. Even if your friends aren’t car experts, having a neutral companion can help keep you grounded.
This way, you’re less likely to impulsively commit to an impractical Mustang that exceeds your budget.
Take the Test Drive Seriously
Never commit to buying a car without thoroughly testing it first. Even a brand-new vehicle might not suit your preferences or meet your needs.
Perhaps the handling feels off, or the seating position is uncomfortable. It’s better to uncover these issues during the test drive than after you’ve made the purchase.
If you do end up buying a car that develops problems, Arizona’s Lemon Law may provide some protection. Under this law, you’re covered by the manufacturer’s warranty for two years or 24,000 miles, whichever comes first.
The Lemon Law period begins on the date the vehicle is delivered. Should you encounter issues, report them to the manufacturer immediately.
Patience is a Virtue
Finding the perfect car may take time, and you won’t always discover what you’re looking for on the first try. Be prepared to walk away if negotiations or your search aren’t going as planned.
For instance, if a $200 processing fee pushes the car out of your budget, communicate your concerns to the dealer. They might waive the fee to close the deal.
However, stay firm with your budget and priorities. It’s challenging to walk away, but there are plenty of options available, and another dealership might better meet your needs.
Don’t Get Caught Up on the Sticker Price
Every car comes with a Manufacturer’s Suggested Retail Price (MSRP). While dealerships base their pricing on the MSRP, remember that it’s merely a suggestion. This price point allows room for negotiation.
Dealerships acquire vehicles from manufacturers through transactions accompanied by invoices, which state the price the dealer paid.
Online tools like Edmunds’ True Market Value can help you access this invoice price. During negotiations, consider offering a price somewhere between the invoice cost and the sticker price to see how the dealer responds.
Get Your Own Financing (or Negotiate the Dealer’s)
By the time you reach the financing stage, you might feel exhausted and tempted to accept whatever rate the dealer offers. However, it’s worth trying to negotiate.
Contrary to popular belief, dealerships can often offer lower Annual Percentage Rates (APRs) by working with various financial institutions.
Alternatively, you can secure pre-approval for a loan through a credit union, such as Vantage West. Pre-approval gives you a clear understanding of your financing terms and interest rate before you even begin shopping.
Carefully Select the Add-Ons You Really Want
Dealerships frequently offer add-ons such as paint protection, GAP insurance, and extended warranties. Before accepting or declining these extras, research their necessity and cost-effectiveness.
In some cases, it might be cheaper to purchase these services through a financial institution rather than the dealer. For instance, Vantage West offers GAP insurance as an alternative.
Make Educated Final Negotiations
When you reach the final stage of negotiations, your prior research becomes your greatest asset.
Gather all your pricing quotes and dealership reviews, then present the lowest quote to your preferred dealer and ask if they can beat it. While some dealers may decline, others might accommodate your request.
Keep in mind that optional features and extras can influence the price, so factor these into your negotiations. Buying a car is like playing poker—it requires strategy and attention to detail.
Stay in Control
Ultimately, you’re the one spending the money, so you should feel empowered to make the decisions. If a deal doesn’t feel right, don’t hesitate to walk away and try again later.
By entering the process with confidence and a well-thought-out plan, you can secure a fair price, agreeable terms, and a vehicle from a reputable dealer. Then, you can drive off the lot knowing you negotiated like a pro.
Vantage West offers financing for new and used vehicles. Learn more about financing your car with Vantage West.
If you’re looking to lower your current car loan payments, Vantage West also provides competitive refinancing rates. Discover more about refinancing with Vantage West.