Buying a new car can be a daunting task for many people, but it doesn’t have to be. Here at Auburn Savings Bank, we are here to help you navigate through the stress of picking out a new vehicle, purchasing that vehicle, and financing that vehicle.
Step #1: Do Your Research
Before stepping foot into a car dealership or shopping online, you should research the type of vehicle you might be looking for. If you don’t have a vehicle already in mind, then this step will be even more important for you to get a feel of what you might like or dislike. During this research process you should make note of the market value, features, and reviews for the makes and models that you look at. There are several websites such as Kelley Blue Book and National Automobile Dealers Association (NADA) that are valuable resources used to find car prices and help customers properly understand how much they should be paying.
Step#2: Learn the Language
In the current day and age there are new advances happening every day. Something to keep in mind when gearing up to shop for a new vehicle is to expose yourself to the new technological advances in the car world as well as the difference in car models. Knowing this information before shopping for your new vehicle will help you better understand what you would like, as well as help you decide how much you want to spend based on the new features in the different car options.
Step #3: Know Your Trade-In Value
Often when buying a new vehicle, customers will trade in their older vehicle to pay less for the new vehicle. For example, if a customer is buying a new vehicle with an MSRP of $40,000 and their old vehicle has a trade-in value of $12,300, then the customer will walk out of the dealership paying $27,700 for the new vehicle. It is important to know how much your old vehicle is worth before going to the dealership so that you can use that information to help you negotiate and see if you are staying within your budget. It is also important to know if you still have a lien on your current vehicle, since that amount will have to be paid off, subtracting from the trade-in value amount. If you can, try to wait until your car is paid off so that its entire value goes towards your new vehicle.
Step #4: Explore Financing Options
Before entering the dealership be sure to explore your options if you are going to need financing for your new vehicle. You should check with your bank to see what their stipulations are for an auto loan. To find out what your financing options are at Auburn Savings Bank you should reach out to one of our lenders who will be able to walk you through the entire process.
Step #5: Timing
When you head to the dealership you should be aware of the timing. Time of the month, quarter, or year can make or break your opportunity to get a deal when shopping for a car. It is recommended to try to go at the end of a month, quarter, or year if possible because that is when dealerships are trying to meet their sales targets, therefore they may be offering better deals. It is also recommended to try and shop during the week instead of weekends.
Step #6: Take it for a Spin
Always make sure to ask to test drive any of the vehicles you are thinking of buying. This is a step some people will overlook, or think is unnecessary, however it is extremely important so that you know if the vehicle you are looking at fits your needs for comfort, features, etc. If you are possibly looking at buying a used vehicle you should also consider getting an inspection done on the vehicle to ensure that the vehicle doesn’t have any hidden issues.
Step #7: Be Weary of Add-Ons
Dealerships will often try to add on last minute “extras” when closing a deal so that they can earn extra commission. These extras will often be vehicle service contracts, Gap insurance, or other warranties. While some of these extras can be incredibly useful, it is important to ask as many questions as possible to ensure that you truly understand what they cover before agreeing to add them onto your final bill.
Step #8: Shop Around
Make sure you go and look at vehicles at several dealerships. Whether you are looking for a new or used vehicle it is important to shop around to see which dealerships have the best prices and models of the vehicle you are interested in. Dealerships often have the same vehicles listed for different prices so you could end up missing out on a deal if you choose to just go to one dealership.
Step #9: Know When it’s Time to Walk Away
One of the most important things to remember when shopping for a new vehicle is to know when it is time to walk away. If you are feeling pressured to finalize a deal it is better to wait, leave the dealership and decide at your own pace. Often if you are feeling pressured to take a deal and decide to leave this will prompt the dealership to offer a better deal to get the sale closed.
Step #10: Buy A Car Before You Need To
The last thing you ever want to do is go to buy a new vehicle when you don’t have a choice. If you know you might be in the market for a new vehicle, make sure you go sooner rather than later otherwise you will most likely get talked into buying a vehicle you don’t necessarily want at a price higher than it should be.
We are here to help you! Come to one of our branches and speak with an Auburn Savings lender team to help with your unique situation. Click here to contact us today.
This blog is for educational purposes only and should not be used as financial advice. Come inside and visit a branch, and one of our Loan Officers will be happy to assist you. At Auburn Savings, we nurture relationships, foster ambition, and are driven by purpose—You Come First. Bank On Us™.