Purchasing a New Car from a Dealer

Purchasing a new car from a dealer can be fun and exciting but also a little overwhelming. The best way to handle this situation is to go in there ready and prepared to negotiate, but only to the level that you have set beforehand. This means you don’t want to get talked into a higher amount than you already planned, including an interest rate that is too high.

Knowing what your credit score is before you arrive is half the battle, and then you’ll know how far you negotiate the prices down. Since this is the number that determines your interest rate, it’s important that there are no errors on your credit report. When you know you’re going to look into purchasing a new car, get a free printout of your credit report first and make sure everything is accurate. Once this is done, you don’t have to worry about a credit report mistake keeping you from the right price.

Next, you’ll want to make a budget of your monthly expenses. You’ll know from the start how much you can afford to pay each month for new car costs without making your other obligations a hardship. In the meantime, you want your car payment to fit in with everything else and not put undue stress on the rest of your financial demands.

Some people may prefer to spend hours at the car lot dealership walking around and looking to see what’s available. If this is the way you prefer to shop, then you will be able to see each vehicle up close and personal, and see if your style of desired car might change. However, if you are pretty set on a particular vehicle, then you can call ahead to see if they have one in stock or available to ship in. This will save a lot of your time in terms of finding the right car for you.

When you call in, you can also begin financial negotiations by letting them look up your credit score. They can look this data up, and then work up an amount as to how large of a purchase you are approved for. The most important part of this amount is the interest rate so make sure that is competitive also, or you will be paying too much over time.

If you want, you can call several car lots to see what kind of deal they can offer you. Each of these work with different banking institutions and they may be running various types of loan specials during that time period. Depending on the right kind of financing, you may be able to combine a very low interest rate and the exact kind of vehicle you want. If it comes down to it, perhaps consider reducing your list of extras that you want the car to have in order to bring the price down. Sometimes eliminating one or two things can make the price reasonable and you still get the majority of what you were looking for.

Finally, ask about extended warranty and gap insurance. These are two things that are important but can really snag you when you need them if you’re not careful. Look careful at the terms of both and make sure there are no clauses that exclude most of the common repairs and maintenance during the first few years when purchasing a car from dealerships. This is the time when you will be making the most of your car payments and you don’t want to have to be paying extra for regular filters and other such maintenance if you don’t have to.

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