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What to do When Buying a New Car

From the friendly guys at Automotive.com

What to do When Buying a New Car
(By, Edward Pacheco)

People have been buying cars from new car dealerships for as long as the automobile has been around. Still, we often feel intimidated when walking into one of these dealerships because we think there is a chance that we could get a bad deal. This is normal. Most people do not like negotiating with salespeople, and for good reason�they�re better at it than you because it�s their full-time job. However, as long as you have gone through the process of really thinking about what you want and what you can afford, then there is nothing to be afraid of. By following a simple procedure you will be guaranteeing yourself of getting a good deal.

The first thing that you should do when you realize you want a new car is to write down all the makes, models and trims that you are interested in. Make sure to be realistic in this step. Writing down a Porsche Boxster you original goal was to buy a commuter car. Just think about the size of the car that you want as well as what you are going to use it for. After you have everything written down you will want to gather information online regarding the options and pricing of each car. If you know that you would like a sunroof and leather seats, know that your price will be at the higher-end of the range. If there is something specific that you want, such as heated seats, make sure to check and see if your desired models offer that option.

You will next need to determine what you can afford to pay for a new car. Make certain to consider things that go into the total cost of ownership. Examples of these things can include insurance cost as well as fuel costs. All of this you can physically see on the window sticker, or easily find online. Check the MSRP of each car for the options that you want�it will give you a good idea where the negotiations will start. However, if you can locate the dealer price for a new car you will know what they paid for the car. The price you should pay will end up being between the MSRP and the dealer price. The closer you get to the dealer price the better the deal is for you. Don�t be afraid to go low, cars are regularly sold below invoice for one reason or another. Once you�ve done your research you can then go ahead and eliminate cars from your list that fall outside of your affordability.

Once you�ve done your research at home/on the computer, it is time for you to visit a few dealerships to test drive the cars. Go to the new car dealers with the idea in mind that you are just going to test drive and not buy. It is important that you test drive each car on your list so that you have a good feel for how each one handles and performs. After the test drives thank the salesperson for their time while making sure you have their contact information. Walking away from the test drives without talking price will put some pressure on the salesman regarding lowering the price of the car. If they feel that you were not that impressed they will be more inclined to come down on price. This is especially true if you wait until the end of the month to start talking about sale price. The sales staff usually have a quota to make each month so they are forced to move cars for a low price at the end of the month if they are below quota. To that end, when going back to negotiate the terms of the sale remember that you have a ton of knowledge on the price of the car. Since you know what they paid for the car as dealer, you can certainly negotiate the price with confidence. Do not settle on a price that is higher than what you think is fair. If the dealership you are at will not give you the price you want it is ok to walk out. There are other dealers out there. In some cases the salesman will crumble and give in to your demands and in other cases you will have to make the purchase at another dealership.