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Decide how much money you can spend and what type of car best suits your needs.
Make a list of all the makes and models in which you're interested, including the features and options you want, and do some homework on those cars. A number of consumer and automotive publications are available from newsstands and libraries to help you compare different cars and trucks and review information about reliability, frequency of maintenance, trunk space, passenger comfort, and other practical features of today's new cars. The more you know about your individual needs, the quicker you can drive the car you love off the lot.
Research various models to determine which are the safest, most reliable, and otherwise suitable.
Consider the safety features offered in a car. More and more automakers are offering side air bags in addition to driver's side and passenger side airbags. Other optional safety features include built-in child safety seats, anti-lock brakes, and traction control. Also, consider whether the car has good outward visibility, and whether or not the gauges on the instrument panel are easy to read.
Check out crash tests and accident data.
Visit progressive.com for crash test video
Narrow your choices to several cars.
Do not make the mistake of having your heart set on one car -- it may reduce your bargaining power.
Obtain updated price lists to compare dealer costs with prices listed on the window sticker.
You will know how much bargaining room you have on the basic car and individual options. Negotiations often have a vocabulary of their own. Here are some terms you may hear when you're talking price.
- Invoice Price -- is the manufacturer's initial charge to the dealer. This usually is higher than the dealer's final cost because dealers receive rebates, allowances, discounts, and incentive awards. Generally, the invoice price should include freight (also known as "destination and delivery"). If you're buying a car based on the invoice price (for example, "at invoice," "$100 below invoice," "two percent above invoice"), and if freight is already included, make sure freight isn't added again to the sales contract.
- Base Price -- is the cost of the car without options, but including standard equipment and factory warranty. This price is printed on the Manufacturers Suggested Retail Price.
- Manufacturer's Suggested Retail Price (MSRP) -- also known as the Moroney sticker, this shows the base price, the suggested retail price of manufacturer-installed options, the manufacturer's transportation charge, and the fuel economy. Affixed to the car window, this sticker is required by federal law, and may be removed only by the purchaser.
- Dealer Sticker Price -- usually printed on a supplemental sticker, this is the Moroney sticker price plus the suggested retail price of dealer-installed options, such as additional dealer markup (ADM) or additional dealer profit (ADP), dealer preparation, and undercoating.
Get a firm quote, in writing, from the dealer.
Shop around at several dealerships.
Check out their reliability with the local Better Business Bureau.
Keep all negotiations separate.
Consider questions about financing, service contracts, trade-ins, or other extras after you have settled on a price.
If negotiating over prices bothers you, consider a car-buying service.
Shop around for financing and compare the terms carefully.
Contact lenders directly. Compare the financing they offer you with the financing the dealer offers you. Because offers vary, shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan. When negotiating to finance a car, be wary of focusing only on the monthly payment. The total amount you will pay depends on the price of the car you negotiate, the APR, and the length of the loan.
Sometimes, dealers offer very low financing rates for specific cars or models, but may not be willing to negotiate on the price of these cars. To qualify for the special rates, you may be required to make a large down payment. Sometimes it's more affordable to pay higher financing charges on a car that is lower in price or to buy a car that requires a smaller down payment.
Shop around for auto insurance before you buy a new car.
It's important to understand the cost of insurance for that new car - before you buy it. Log on to progressive.com to get comparison rates from up to four leading auto insurance companies, or visit an independent agent near you (go to progressive.com to find an agent near your work or home). Independent agents represent many companies and can help you shop around for the combination of price and service that's right for you.
Test drive the car before purchasing it.
The only way to get a proper feel for the performance, handling, ride, and comfort of a new vehicle is to drive it. The following tips may be helpful:
- Test drive all the models you are considering.
- Drive the cars on different types of roads.
- The test drive should last long enough for you to get an accurate feel for acceleration, braking, steering, and overall stability.
- Listen to the radio for sound quality but turn it off during the test drive so you can listen to car, wind, and road noises.
- Rent a car of the same make and model you anticipate buying for the weekend.
Read and understand the contract thoroughly before signing.
Take the time to read the sales agreement - including the fine print - and don't accept what you don't want. If you don't understand something, ask! If you leave a deposit, be sure you understand the conditions and your obligations. Remember, a contract is binding (on you and the dealer) and it may be difficult to get your deposit back.
As with all contracts, don't rely on verbal promises, and do not sign a contract that has blank spaces. A contract is only binding after it has been approved by an authorized representative (the sales manager or general manager, for instance) of the dealership, so before you leave the showroom, be sure someone in authority has signed it. Finally, be sure to get a copy of the signed contract for your records.
Inspect your new car carefully before driving off the car lot.
Before you drive the vehicle away make sure everything you ordered is on it and that everything is working properly. Make sure ...
- The salesperson reviews the owner's manual and explains any special break-in procedures as well as routine maintenance schedules.
- You look under the hood and ask fundamental questions, such as "Where is the dipstick for the oil?" "Where is the reservoir for the windshield washer cleaning fluid?" "Where is the coolant overflow/fill canister?" "Where is the brake master cylinder fluid reservoir?"
- You look into the trunk; check the spare tire and jack and note any special instructions.
- The salesperson introduces you to the service manager and shows you the service department.
*This information was collected from numerous sources including Progressive, the Better Business Bureau, Federal Trade Commission and the National Automobile Dealers Association. |
