Normally a dedicated used car buyer, I just bought my first ever new car over the weekend. It’s a Honda Fit; affordable, great gas mileage and ideal for living in a crowded city. Here are few tips from my first hand experience:
- Start shopping online – Browse and compare cars online before narrowing your list down to a few makes and models. Don’t forget to consider similar used options that might be less expensive. Revise this "short list" down to one car by taking a few test drives.
- Get an insurance quote before you buy – Call your insurance company to see how much your rates might change with your new car and factor this cost into your decision making.
- Negotiate by email, phone and fax - This is key! Most auto dealers now have online departments that specialize in replying to customer emails. We were able to reduce our price significantly by negotiating with competing dealers in our area. And saved a lot of time and energy too.
- Apply for an online auto loan – Even if you don’t use it, getting an auto loan quote online will help you negotiate the best financing rates with a dealership.
- Make sure your loan doesn’t have a pre-payment penalty - Paying your auto loan off early can save you a bundle on finance charges.
- Avoid expensive "up-sells" - Car dealers can make a lot of money on overpriced perks like car mats, clear coating, extended warranties and "touch of class" packages. Either negotiate the prices way down or skip them.
With a little preparation and online work, it can be easy to get a great deal on a new car!
Emily Davidson
is editor of CreditBloggers.com and a former credit expert for the
credit bureau, TransUnion. She writes about credit and personal finance
topics.
Credit.com offers straightforward tips and advice to help you make smarter financial decisions. Visit Credit.com to sign up for your FREE Credit Report Card and find out where you stand today!
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I would add that you should never answer when the dealer asks what monthly payment you’re looking for. The last time we bought a car, I had to pretty much tell the salesman that if he didn’t stop asking that question and agree with us on an final price, we were leaving. It was obvious that he wanted to take what monthly payment we could afford and figure out the highest total he could reach from that.
The best time to buy a new car would probably be September and October this is the time when the new models cars arrive.
The best time to buy a new car would probably be September and October this is the time when the new models cars arrive
The most common problem that new cars buyers face today is to decide on which car to buy for. In the excitement of buying new cars, they usually forget to follow certain tips & points that can make their job of buying new cars quite easier.
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The best time to buy a new car would probably be September and October this is the time when the new models cars arrive
Nothing, but change you phone#. If you are planning on not paying for them at all they can do nothing to you. It will hurt your credit, but like your feelings it will heal. They cannot garnish your wages or take your personal belongings and there is no more debtors prison. Try to talk to them first and if you are not happy with the solution you can walk away from the cards. I have done it many times. All they will do is sell that debt to some other company and it will show up on your credit report as a charge off. They can’t do anything to you.