Buying a New Car

Buying a new car need not be a stressful (or wallet-draining) experience. Be sure to follow the rules:
1. Buy when you do not need The best way to get a great deal on a new car is to avoid being in position to replace the one you have, because it just broke and it is beyond fixing (or if you just do not want to put any more money on it). Desperation often leads to good business - for the purchaser to anyway. Smart shoppers anticipate the need for a new car and start looking at what's available long before they actually need a new car.
2. Shop for money first If you do not buy a new car with cash, you should think about new car financing (and interest) before you think about what color to get. Many buyers forget that it costs money is just as important to the bottom line, because the new car price. Regardless of what you have saved in advance of the new car price can easily be lost in the course of the loan if you sign up for a loan with a higher interest rate than you could have / should have paid. Check with several potential lenders - including credit unions, banks and automakers' captive finance arms (GMAC, etc.) - then buy a new car. So you can focus on one thing at a time instead of two things at once. You know you have the best you can have on at least one of them.
3. See incentives To jump start sales, many car manufacturers offer various incentives (bonus "loyalty" discounts, special financing deals, etc.) that could be worth several thousand dollars from the new car price. If you are thinking of two similar (but different brand) vehicles, incentives for one of them could be any incentive you need to make the choice between them. You can also use incentives to a mark which is negotiating the purchase of another. Point out to the salesman that you can buy a new car brand "x" for $ 2000 from the sticker and ask if there is anything he can do to make its brand more competitive - such as tossing in a no-cost extended warranty or free oil changes for two years, etc.
4. Do you know what you buy Most models of new cars (and trucks, SUVs and mini-buses also) come in several versions, with your choice of engines, transmissions, safety and other features. You should always know at least as much on your next new car that the salesman does so you can speak knowledgeably about the car with the seller. You do not want to get a ride to buy a new car with things you do not really need or end with one that lacks some things you end up wishing you had bought. Information is readily available: see the car Web sites and read so many experts reviews as you can find. You should also take a thorough test of at least two hours before you buy a new car. Make sure the vehicle is comfortable and there is no design problem (too blind spots, uncomfortable seats, noisy engine / hard to move the transmission, etc.) that you may hate to live with if you really own the car. You can save yourself a big headache and a lot of money too.
5. Know how much your old car is worth A big mistake that many buyers are focusing on the new car, and the price, but forget to know exactly what their age is worth. It does not much good if you save $ 2000 on the new without losing a corresponding amount on your trade-in. The exact value for each used car is vehicle specific, there is almost always significant differences in condition, equipment and mileage. But you can still get a very solid "division" idea by checking the current trade-in/resale prices on cars in your classified ads and in trade guides Kelley Blue Book and National Automobile Dealer Association used car price books. You can adjust the value up or down for things like higher than normal mileage, excellent (or just average) condition and so on. Be aware that there is a difference of about 10 percent in retail vs. wholesale prices. "Retailers" for what used car would be advertised for a private seller or dealer, "wholesale" refers to the offer the dealer, do the car as a trade barrier. The difference reflects his profit margin and costs associated with cleaning and other "prepping" the vehicle for resale. And finally ...
6. Not wear your heart on sleeve Getting emotional about a new car or truck is good, when you get home. But when you buy a new car, you will almost certainly be better if you can remain aloof and detached as Mr. Spock. Never describe more than casual interest in a car, the salesmen react to emotional buyers like sharks react to blood in the water. If you feel that your heart can go further in your head, put a spouse (or a good friend) along to keep you out of trouble. You should convey a "take it or leave" the impression - and more convincing your score, the better the chance that you drive home a business.