Vehicle Buying Tips

First, look at your own financial situation and determine how much car you can afford to purchase. Make sure you consider the payments, insurance, gasoline consumption and maintenance expenses. A vehicle payment should not be more than 20% of your gross monthly income, and all your debt expenses should not exceed 40%.

Research the vehicle you are buying and the vehicle you are trading in, if applicable. If you are buying new, know the invoice price (price the dealer paid). If you are buying used, there are several really good websites out there that can give you a ballpark price of what you should pay for the vehicle. NADA.com and KBB.com are good guides for what you may be able to get for a trade in. The ultimate value is very hard to determine with different options, driving condition, quality of the paint, and condition of the vehicle. In researching your vehicle, see if there are any manufacturers’ rebates. These can save you hundreds to thousands of dollars on the price of a vehicle.

Get pre-approved for your vehicle. When you are pre-approved, the only thing you really need to haggle on is the price of the vehicle and/or your trade in. If you know you have a $20,000 pre-approved loan, you are completely confident that the financing is taken care of and that will help put you at an advantage when it comes to making a deal.

Know your maximum price you are willing to pay and stick to it! Negotiating can be fun and completely unnerving. If you do your research, then you will have no reason to get flustered while negotiating. The dealership or individual will not meet your price? You can always walk away from the deal. If they want to make the deal badly enough, you will not make it out of the showroom before they will give you a counteroffer. Get rid of emotions...This is a business transaction. You want to buy what they want to sell.

Test drive the car you want to buy. Give it some gas. Try the heater and air conditioner. Turn the radio on, change the channels, but also turn the radio off. Listen for any strange noises – air cracks, tapping in the engine, vibrations, creaks and groans the vehicle may make. Try backing the vehicle up a slight incline. Any clunking sounds when putting the vehicle in gear? What about when driving the car and it is changing gears, is it smooth?

Also, have your mechanic look it over – especially if it is used. A trained mechanic can spot things that might normally be missed. Along the same lines, make sure the vehicle does not have a salvaged title. With all the flooding and storms, there are vehicles on dealers’ lots that may have a salvaged title. A salvaged title is where the insurance company has basically claimed that vehicle as a total loss. You may get a lower price, but you might also end up paying more with maintenance issues and not get as much when it is time to sell the vehicle.

To get the best deal on buying a car, adhere to your budget, know your vehicles’ expenses, shop as an educated buyer, and know your financing interest rate. The more educated you are about your purchase, the more confidence you will have to make a wise decision.