Tips for first-time car buyers!!!

[NewJersey]

Does anyone have tips for first time car buyers?

I'm not sure really yet which model I want or if I want to buy/lease; as I take the train into the city everyday for work, I hardly drive which I why I'm thinking leasing would be good.

I hear going around Christmas is good as it's end of the year and not many people are buying cars around then, so they are willing to knock down the prices.

Any tips would be greatly appreciated!

 

[icebrat001]

We bought a new suv in September, out first time buying a car alone. Best advice set a price you can live with and a price you won't go above, they will try to talk you into all kinds of crazy things. We came in with our own financing, try lending tree.com

If you plan to get financing with them, research the interest rates before you go and don't let them tell you it's only $xxx.xx a month because it may vary based on the length of the loan $240 a month on a 36 month loan is great, but no so great on a 72 month loan.

Goodluck!

 

[Jabber_Jaws]

Try looking around this site. Some good advice can be found here.

www.edmunds.com

 

[NewJersey]

Thank you both for the advice!

I've been mulling around edmunds.com lately as my dad told me about it too...it's such a great sight!

I have my max payments a month I'm willing to pay and a target I'd like to get...so we'll work from there!

 

[MushyMushy]

vehix.com!

I love their vehicle comparison feature.

 

[Wish Upon A Star]

My DH always says that when you find a vehicle that you really are interested in, figure out what you are willing to pay for it each month and stick to that price, and never be afraid to just walk away. Check interest rates for new car purchases on capital one auto financing and do a pre-qualification, sometimes those rates are better than the dealer rates.

I have never been involved in the actual car purchase drama, DH does it all. I did see his work though when he purchased our DD her 03 Wrangler. He told the salesman what he was interested in having his payment be and he did walk away when the salesman couldn't seem to get to that price . . .when DH walked, the salesman came running after him.

The best time to buy a car is at the end of a month when the salesman needs to make his quota has always been our experience.

Good luck and happy car hunting!

 

[lindalinda]

Thank you both for the advice!

I've been mulling around edmunds.com lately as my dad told me about it too...it's such a great sight!

I have my max payments a month I'm willing to pay and a target I'd like to get...so we'll work from there!

This can get you in a bit of a problem. Using this technique....i.e. I can afford xxx$ per month....gives the seller a lot of leeway to up the price, and extend the financing terms. I suggest you go and ask about financing at your bank before you go...see how much you can qualify for for your purchase and use that as well as your info on the car from internet sources. If you know the price the car should be, and you have financing worked out....you can get them to negotiate on both. They want you to finance with them, but they need to offer you the best terms, and the best rate. Make them beat your rate.

 

[brittsmum1998]

We just bought our first new car 6 weeks ago. We were nervous to say the least. We had decided what we would be comfortable paying (private financing) and went to two dealers. At each dealer we told them what we were comfortable paying and to give us their BEST price that would be comfortable for both parties. We then said that we were not going to "dicker" and not reveal the price to the second dealership and vice versa. First dealership was 700$ over our comfort zone and NO car starter(had they thrown that in I would've been sold) ...second dealer $240 OVER our comfort zone AND the car starter installed. Worked really well and we had no stress buying the car.

 

[WatchinCaptKangaroo]

1st find the exact car you want - model wise. Be willing to bend on colors, to an extent.
2nd - look at Kelly Blue Book and Edmunds to find what the true market value price is.
3rd - get financing from somewhere other than the dealer.
4th - find out the max total you can afford.
5th - call auto insurance companies to see how much it is to insure.

I have my max payments a month I'm willing to pay and a target I'd like to get...so we'll work from there!

Never ever ever use payments to figure out what you can afford. Dealers use this trick a lot and you end up paying a lot more in the end. Take your max payments, multiply them by your ideal terms and that is your target price.

I always recommend buying over leasing. If you lease for 3 years you have to turn it in and have nothing to show for it. If you buy and 3 years later you decide that you are tired of the car you can sell (and if you play your cards right you aren't upsidedown on the loan and will get a profit from it).

Don't be afraid to walk away if they don't meet your price. Go towards the end of the month, in the middle of the week on a rainy day. They will move the moon to sell then.

Call and ask for the fleet manager or the internet sales manager. They have more power to deal then regular salesmen.

Remember, this is a game to them. Make it a game to you. YOU have all the power in this. When they go to "talk to their manager" they are probably just standing around in the back. When "the manager" comes out to tell you they just can't go any lower (and they still haven't met your price) leave.

 

[NewJersey]

Okay, I've been looking online and I'm sick of it already! And I haven't even dealt with the salespeople.

Thanks for the advice about the budget. I know the total amount I can afford and am looking at cars in that price range now. But I won't go in there and say what payments I can afford, etc. It was more of just something in my head to keep when looking up cars online.

I'm going to be checking out my credit union this week and look into auto loans since I'll probably finance instead of lease.

Thank you all again.

 

[janette]

As others have said shop for the best deal & the best financing. Keep it separate. edmunds and other sites offer a good pricing option, most of them charge for it it is really helpful if you are purchasing a new vehicle. Sometimes dealers do have better financing available but you have to know what you can get from other sources to know if it is a good deal.

Find some good articles in the lease vs buy. Buying is to your advantage if you will keep the car for a long time, if you want a new car about every 3 yrs leasing might be a better option.

If you can use the Internet for shopping. Most of them have Internet salespeople and you can do almost all the shopping online. We bought my Dh's vehicle that way several yrs ago and paid invoice. We went to the dealer to order the vehicle and pick it up.

 

[EthansMom]

Definitely look into getting financing through your credit union! You'll save a bundle.

Also, look at getting an auto that will meet your needs in the future. When I bought my first car myself, I bought a 4-door even though I was single, figuring that I might still have the car when I was married and had kids. Yup, nine years later, I still have that car and am married with two kids. If I had purchased a 2-door, I would have had to get rid of it years ago.

There's a huge mark-up in the extras on automobiles. Unless there's a significant safety reason to get a specific extra, just get the basic automobile.

Personally, I always look for a car that is affordable, reliable, and meets my needs. We buy our cars new and then drive them at least 9 or 10 years.

If you want to save yourself some stress, you can go through a car buying service. I recently read in one of the financial magazines that a car buying service (Costco and Sams Club offer them to member) will cost you about $200 more than the lowest you might be able to negotiate yourself. Heck, I'd be willing to pay $200 not to have to dicker with a salesperson. But you will need to know exactly what car you want first.

Good luck!

 

[mla2177]

I worked in the car business for 14 years and the best advice I can tell you is to buy the car on the last day of the month!!!!!! The sales dept have quotas that they have to meet each month to get bonuses from the manufacturers, so they usually will give a car away to meet the # on the last day of the month!

If you are planning on buying an extended warranty, negotiate it also, they can make a pretty penny on those things, and most people don't know you can negotiate the price of them too.

I would recommend anything foreign, as they hold their value better than american built cars!

 

[manning]

Having been involved in negotiations before retirement and trained in it, the one big stumbling block is emotion.

You care to make a deal. The advise given is care enough to close the deal but be prepared to walk away from it. You have to keep yourself in the position where they want your money more than you want the car.

I remember one time when young I walked out of the show room because they wouldn't come down on price. They followed me out the door and I got the price I wanted.

DON'T FALL IN LOVE WITH THE CAR!!!!!!