Tips for the First Time Car Buyer

Posted on July 21, 2016 by

Tips for the First Time Car Buyer Friday June 05 , 2015 Buying a new car can be a daunting task for even the experienced buyer. Shopping for a new car shouldn’t be a miserable task it should be fun and exciting. To have a hassle free, car purchasing experience, follow our beginner’s survival guide for buying your first car. Tip 1 - Research A car is a major investment; it is likely the second largest purchase you’ll ever make. Take your time and do your homework. Before stepping into a dealership check out some car reviews, safety ratings and get an idea of price. An informed consumer leads to a happy sale. Tip 2 - Narrow your Choices Establish priorities. Are you most concerned with aesthetic? Safety? Technology? Cost? Depreciation? Fuel Economy?Setting your priorities will help you narrow options. Tip 3 - Best Time to Buy The best time to buy a car is in between August and November. Dealers are anxious to clear out the current years inventory to make room for the new ones. Do your research and look online to see if there are rebates or other promotions. Tip 4 - What’s the difference between sticker and wholesale price? Sticker price or MSRP is the price the dealer wants you to pay for the vehicle. Wholesale is the invoice price the dealer actually paid for the vehicle. You can find this information for a small fee by purchasing reports from Car Cost Canada or New Car Price Reports. Knowing wholesale price and sticker price gives you the upper hand when negotiating the price of your new vehicle. Tip 5 - Take it for a test drive Once you’ve found a few vehicles that meet your needs take it for a test drive. Drive vehicles on city streets and highways to assess performance and handling, test out the wipers, do a few U-turns in a parking lot and take note of blind spots. Tip 6 - Negotiate! Get bids from different dealers. Use the information you obtained about the wholesale price to your advantage. Bargain up from that price rather down from the sticker price. Be aware that vehicles that are hot in demand may be tougher to negotiate. Tip 7 - Think carefully about costly add on’s Dealers will attempt to sell you costly add on’s like fabric protection, undercoating, and extended warranty. Most of these items are non-essential and can drive up the size of your loan. Tip 8 - Do not mention a trade in until you’ve negotiated a price! Just as you do your research on the car you are purchasing you need to do the same for your trade in. Find out what the trade in value is or consider selling it privately. It’s likely that you will get more money selling privately than on a trade in. Tip 9 - Read the contract. SERIOUSLY! Read the contract and all of the fine print. Ensure that all the terms you negotiated are within the contract make sure there are no extra charges or fees, and make sure you understand what you are signing. Tip 10 - Inspect your new car Before leaving the dealership ensure you’ve checked out your car. Check for dents, scratches, and leaks. If you were promised floor mats make sure they are there. Ensure there is a manual and if there are repairs that are promised for a later date, make sure you get it in writing.