Steps to Buying a Car in an easy to follow step by step car buying process. These car buying steps have been arranged in the order in which they should be done. These techniques on getting the best deal buying a new car will save you money. They start with doing your research before you head out to the dealer and through the process that you will likely go through at the car dealer.
Techniques on Getting the Best Deal Buying a New Car
Follow these techniques on getting the best deal buying a new and the car steps to prudent car buying for How To Buy a New Car in order and to the letter and you will have a smooth car buying experience. They steps will not only ensure that you do not become the victim of car dealer scams, but show you that the car buying process experience can actually be a smooth and exciting experience.
When you control the steps to prudent car buying than the car dealer or the salesman, the process of buying a car will be something you fondly remember rather than dread like most car buyers.
Steps to Buying a Car: Selection and Research
When it comes to the steps to prudent car buying there are a few items you need to take into consideration. Like are you paying cash or are you financing? What brand and what type of car such as sedan, SUV or coupe? These questions are usually answered by your budget. You can buy a brand new car starting at $10,000.00. You probably have an idea of what type of new car and what fits your budget by now.
Lets get started with the first of the steps to prudently buying a car. The first step I recommend is that you get 4 quotes from different local new car dealers that want to compete for your business. The easiest way to do this is to Click for Edmunds or Click Yahoo Autos to receive quotes in your email. You can talk to these dealers on the phone, but if you would rather not just select that you want to be contacted by email. So click here (it will open in a new window so you won’t leave this page) do it now and get your FREE, No Obligation Quotes Right Here for Edmunds or Here for Yahoo Autos.
You should be receiving your new car quotes in your email shortly. These quotes are prepared and emailed by the local dealers that you selected from Yahoo Autos or at Edmunds based on your zip code. I prefer this method of getting quotes because they actually come from the dealers which means that they have committed to selling the car at that price and I don’t have to worry about negotiating with a salesman over price when I get there, it’s a no-brainer. (I love Internet car shopping)
Now that you have your new car quotes, look them over and make sure they are for the car you want and that they are in the budget figure that you decided on spending. If everything looks right, great we will move on to the next of the steps to buying a car. If your quotes are not the car you wanted or the price is higher than you can spend just go back to Edmunds (new window link) and change your selection and get 4 new quotes. It’s FREE and there is NO OBLIGATION, so get the quotes for the car you plan on buying.
I recommend Edmunds because I always get prompt and VERY competitive quotes and then when you get to the dealer it makes it very easy because you already have the price worked out. Of all the steps to buying a car this one saves you the most time and aggravation. It is very rare that I don’t get at least one quote out of the 4 that is below invoice. It could take hours or maybe not at all to negotiate a price that low if you walk into the dealer without the quote.
Steps to Prudent Car Buying: Cash or Financing
If you are paying cash for your new car the this of the steps to prudent car buying is easy. You are done here. So if you are going to write a check to buy the new car of your choice you can skip this step and move on to the next car buying step.
If you are going to finance all or part of your new car you have some more research to do to keep you from getting stuck by a car dealer financing scam. The first order of business to this second of the steps to buying a car is to determine your credit score. This will determine your interest rate, term and the amount of money you will need as a down payment.
You need to be certain of your credit score or you need to Get an Trans Union Free Credit Report Now! (opens in new window) Everyone has a credit score with each of the 3 Credit Bureaus. They are Equifax, Trans Union and Experian. Each one of these have a file on you that contains your credit report and score. Banks, credit unions and car dealer financing sources use your credit score to determine if you qualify for financing and what interest rate to charge you on your auto loan. This part of the steps to buy a car can have a HUGE impact on your payment and how much you will pay for your car over the term of the loan.
This financing part of the steps to prudent car buying is where many uneducated car buyers can get stung with a car dealership financing scam. I can’t be more clear that the time it takes to get your credit report and score can save you thousands of dollars in interest on your new car. I have an account for the Trans Union Credit watch and so happy that I do. My identity was stolen a couple years ago and I was notified when someone got a cell phone with my social security number. I had all the bureaus freeze my credit and no more accounts were able to be opened. Several attempts were made, but none were opened thanks to the service. I only had to file one piece of paper to take care of my stolen identity problem unlike all the problems and work that most people have when their identity is stolen. So Get a Free Trans Union Credit Report Now, so we can move forward (it will open in a new window).
OK, by know you should know what your three credit scores are so we can dig into this financing, rate and term part of the steps to buying a car. When you finance a car the financial agency that gives you the car loan will determine your eligibility and interest rate based on your credit report and credit score.
Use there proven techniques on getting the best deal buying a new car and you will avoid any car scams.
We left off on the previous page about your credit score and interest rate. When you get a car loan the bank or lender will determine your interest rate on a tier system. The the higher your credit score the lower the interest rate.
The next thing that you need to consider is how much down payment will be required on your car loan. This will also be determined by your credit score.
LTV and Advance – Steps to Buying a Car
There is another issue when it comes to financing a car and that is the LTV (loan-to-value) or advance. This is important when you are financing a new car because it determines how much the lender will let you borrow. The loan to value means the amount of the loan to the value of the secured item (your new car). Each lender has a way of determining how much they will lend you based on your credit score.
For example; if your credit score is 800 then the lender may be willing to lend or “advance” 135%. This 135% may be based on the dealer’s invoice. So that means that the lender will allow 135%, that is 35% over the cost of the car. That would allow you to buy the car with no down payment and include the taxes and fees. However, if you had a much lower credit score the lender may only advance 90%. That means you would need a down payment that would include 10% of the car purchase plus all your taxes and fees. As you can see there is more involved in the steps to buying a car than meets the eye.
Different lenders have different rules when it comes to how much they will advance for your new car loan. There is not any hard and fast rule it depends on the lender and your credit, but I have seen advances go anywhere from 140% down to 50%. The best thing to do to protect yourself is to get a Free Car Loan Quote from 4 different lenders from Lending Tree… No Obligation and then you can choose the best car loan for YOU!
Critical to the Steps of Buying a Car
So when it comes to the steps to buying a car you can see how critical it is to know your credit score. I can’t stress this enough when buying a car that you should get your Equifax 3-in-1 Credit Report NOW! The easiest way to become the victim of a car dealer scam is to not know your credit score. Knowing exactly what your credit is can potentially save you thousands of dollars of the term of your car loan. I have seen new car buying customers pay and extra 25 to 85 dollars a month because they did not know what their credit report looked like or their credit score.
Protect yourself in the steps to buying a car by getting your Equifax 3-in-1 Credit Report NOW! (opens in a new window so you won’t leave this page) Save yourself from one of the easiest car dealer financing scams.
Now that you know what your credit score is select a rate and term for your car loan. Plug them into the Auto Loan Calculator below to give you an approximate idea of what your payment would be based on your credit score, term of auto loan and amount financed. This step of the steps to buying a car will give you a very close idea of your monthly payment. However there are some things that need to be included in your auto loan calculations. There will be sales tax, license, title and documentation fee. These will change based on your state and county. The sales tax and license will be based on where you reside, not where you purchase your new car.
Steps to Buying a Car – Go Here for our Car Payments Calculator
At this point you should be able to determine your budget for buying a new car. You should have established the maximum amount you want to spend on your new car, your down payment, monthly payment and your approximate interest rate along with the term of your auto loan. Write down all these amounts on a sheet of paper. When you get to the car dealer the car salesmen have a way of clouding your judgment and getting emotionally involved. When that happens your car buying math can go out the window and you end up regretting your purchase later. Let’s move on now to the next steps to buying a car.
Before you go to the car dealer you should get some FREE Warranty Quotes so you will know exactly how much a new car extended warranty will cost you. Click here and get the FREE Quotes at Smart Warranty so you will know exactly how much the dealer is trying to make off of you.
Your Used Car Trade-In
In this the third of the steps to buying a car we will cover the issue of a Used Car Trade-in. If you do not have a trade in vehicle you can skip this step and by going to the bottom of the page and move to Car Buying Step #4.
All of the steps to buying a car are important, but the car buying step of doing used car trade-in research is often overlooked by many car buyers. Most people are excited about buying their new car and fail to do the necessary homework on their trade-in value before they get to the car dealer. Underestimating your trade-in is one of the easiest car dealer scams and one of the most common ways for the car dealer to make extra money.
Steps to Buying a Car – Trade-In Value
In this steps to buying a car gather your used car trade-in information. Such as the year, make, model, trim level and any factory installed accessories. Then Click here..Yahoo! Autos..Now and then go to the used car section. Search for cars similar to yours in your general area. When you find one that is very close to yours click on the car and you will see several photos. Towards the top you will see a tab that says Kelly Blue Book, click there and get the realistic values for your car. They will give the retail and private party values. Private party is when you buy or sell a used car to someone individually. Use that number to determine the value of your used car trade-in by reducing it by approximately 10 to 20 percent for the trade value depending on the condition.
I always use Yahoo! Autos to do my research because it is realistic and actually provides you with numbers that reflect the current market conditions. I have found through trial and error plus the inside the car dealer experience that Yahoo! Autos shows you the numbers that are actually the numbers that others car dealers are using to determine trade-in values. I have tried using several other sources, but I prefer Yahoo! Autos when I am doing trade-in research and the best part is that it’s free.
Steps to Buying a Car – Car Dealer View
When you are trading in a car to the car dealer the sales manager or used car manager that determines the value of your trade-in is looking at your car as if he was buying it himself. The first question they ask themselves is how much do I have to spend to sell this car on the lot. They look it over for dents, leaks, need repairs and anything that would require them to spend money to make it lot ready for sale to the public. If your trade-in is not worth repairing for sale on the lot, they determine the value by estimating how much they can sell it for a the local auto auction.
Should the dealer decide that your car is worth repairing and selling on the lot they will estimate the amount of repairs, add in the desired profit and then deduct that from what they believe the car will sell for on their car lot. The difference will be the amount they will allow for your used car trade-in.
The Car Buying Steps – Trade-In Decision
The ultimate decision to trade-in your car is up to you. You can sell your used car trade-in to a private party by putting a for sale sign in the window or advertise it in the classified section of your local newspaper. It is ultimately your choice and there are many variables to consider when you are trying to decide if you are going to trade-in your car with the car dealer or sell it on your own. Some people are convinced that they must sell their trade-in on their own to be able to avoid car dealer tricks and car dealer scams, but doing your homework can make the big difference. Follow these car buying steps and you will get a good deal.
This step of buying a car has another point to consider. In many states the amount that the car dealer gives you for your trade-in can reduce the amount of sales tax you will be charged. If your state allows that to be the case the dealer will reduce the amount of the new car that you are buying and then the sales tax is calculated on the difference. If you have a trade-in like the car pictured below it will not have much impact. Although if you were trading in a 2 or 3 year old car that tax savings can be significant.
Gather trade-in facts, figures and printouts and lets move on the next steps for buying a car. Put all the information that you have gathered so far into a file folder so you will be ready when we get to the car dealer and buy your new car.
I will assume that you have settled on the specific car you want to buy at this point and that you already went here Yahoo! Autos and got your FREE quotes. IT’S FREE, so if you did not get those 4 quotes go there NOW..Yahoo! Autos. I will wait for you the link will open in a new window. These steps to buying a new car are counting on using your 4 quotes.
OK, you have your 4 quotes so lets head out to the car dealer of your choice based on the pricing contained in your new car price quotes. Next in the steps to buying a new car is go to that dealer and start walking around the lot looking for the car you want to purchase. A car salesman will come out and greet you on the lot. They will go through their regular canned speech and introduction after which time you will tell them which car you are interested in buying. You can engage in casual conversation but don’t tell your salesperson about your quotes or the information you have gathered while doing your car buying research.
Steps to Buying a New Car – Test Drive
The next part is not rocket science so I will make it quick. Take the specific new car that you want to buy for a test drive. Test driving the actual car that you want to buy is important in the steps to buying a car. New cars are usually all the same, but there are times when cars can be slightly different so make sure you drive the car that you plan on buying. You car salesman may have a certain route that they use for test drives and that is fine, but only if you feel that you spent enough time with the car to make a decision to buy or not buy. If you think you need more time to be sure tell your car salesman that you want to drive farther or on a different road or highway. Remember, you are the one calling the shots. You are the car buyer so it is important that you are comfortable with the car and the car dealer experience before you go any farther in the car buying process.
Steps to Buying a New Car – Negotiation
Now it is time to get to the meat of the steps to buying a new car. Your car salesman will have you follow them to their desk and start working numbers. Let hem go through their canned speech and them pull out your quotes and let them know that you will buy the car at the price on the quote. They will probably have to go talk to the Sales Manager to get that approved, that’s fine let them do what they need to do. When they return they will honor the price quote and then proceed to how you are going to pay for the car.
Steps to Buying a New Car – Financing
Tell them than you have bank financing lined up and the interest rate is __% (whatever rate the bank gave you earlier). Let them know that you would finance with them if they can give you a better rate. They will probably have you in to the Finance Office and talk with a Finance Manager (F&I Manager). The finance manger will run your credit and try to sell you on financing with them. If they agree to beat your interest rate or at least meet the interest rate that is great and you can finance with them if you are comfortable with that. At this point in the car buying steps it is normal for the Finance Manager to present you with add on offers and other car dealer financing scams. You will have to make some yes or no choices at this point, but you should know that if you are interested in anything that they present to to you it is negotiable (regardless of what they say). An extended warranty is a great thing o have on a new car, but also a big money maker for the car dealer. You can go here now and get FREE Quotes at Smart Warranty so you can make a good decision.
Steps to Buying a New Car – Car Buying Paperwork
You finance manager will print out all your paperwork and contracts that you will need to sign. In the steps to buying a new car this is probably one of the easiest areas to make a mistake. PAY CLOSE ATTENTION…carefully read everything before you sign anything. Whether it takes 2 hours or 20 minutes you don’t care. Just take your time and anything is not perfectly clear and logical, have your finance manager explain it to you until it is clear to you. Everything on your paperwork should be clearly spelled out and be easy to understand if it is explained properly.
One thing that you may want to consider when you buy a new car is an extended warranty. You Finance Manager will do their best to sell you a warranty with your new car. However buying an extended warranty from the car dealer can generate an extra thousands dollars or more of profit that you are paying. You can get some FREE quotes for an extended warranty – Smart Auto Warranty. Go there right now and get FREE warranty quotes that you can use to save a lot of money on a warranty. Smart Auto Warranty. It’s FREE and you will know the truth about warranty pricing.
Steps to Buying a New Car – Spot Delivery
Alright, you are almost done, the only thing left is taking delivery of your new car. This the last of the steps to buying a new car is to take delivery. Taking delivery is the final step to car buying that legally makes the car yours. There are no returns after you take delivery of your new car by driving off the lot. So before you get in your new car and drive away from the car dealer you should look over you new car very carefully. Walk around the car and inspect everything. make sure there are no scratches, dents, dings, paint flaws, interior stains or anything that causes your new car to be less than perfect. If there any problems tell your car salesman that they need to be addressed before you take delivery. They will handle whatever it is in order to get you to take delivery.
Congratulations, You Have Completed the Steps to Buying a New Car
Your steps to buying a new car experience should have been smooth and you are the proud owner of a new car. If you do not have a smooth car buying experience you should be ready to get up and leave at any time throughout the process. If they get up and let you leave without catering to your requests you don’t really want to do business with them anyway. Any car dealer that supplies you with a quote through Yahoo! Autos should honor their price quote without question. After that you need to be alert and comfortable with the way your car buying experience moves forward to avoid any car dealer scams.