Smart New Car Shopping

Buying a new car can be challenging for even a seasoned car shopper. However, with advance research on specific car models and available financing options, you can become an informed negotiator equipped to wheel and deal with the best of them. Here are some guidelines to steer you in the right direction.

1) Establish Your Target Price Rather than letting the excitement of buying a new car overrun common sense, determine your budget before you enter a showroom. Start your journey by considering the size of your down payment, the value of your trade-in and how much you can afford for monthly payments. Obviously, the more money you put down, the less you need to borrow and the smaller your monthly payment will be. If you'll be trading in your current car to help pay for your new purchase, you can find its market value in a used car price guide. Check your public library for the Official Used Car Guide published by the National Automobile Dealers Association.

2) Secure A Pre-Approved Auto Loan If you'll be financing your new car, it's wise to pre-qualify for an auto loan. With a loan already in place, you can negotiate the car's purchase price independent of financing--giving you more bargaining power. Simply give us a call.

3) Research Models you're Interested In Once you have a budget in mind, you can begin comparing models that fit your needs and lifestyle. Your local bookstore or library contains books and magazines with ratings and recommendations for cars, mini-vans, sport-utility vehicles and trucks. Review recommendations in your price range. Three good sources of information include Consumer Reports magazine (annual April issue), Kiplinger's Personal Finance Magazine (annual December issue), and Car and Driver.

4) Evaluate Features With your field narrowed down to a few models, it's time to see the cars, compare features and conduct some test drives. Consider reliability, safety and economy in your evaluations. Air bags and anti-lock brakes are two key safety features to look for. Resist buying extras that aren't important to you. Compare gas mileage and check with your insurance agent on how your vehicle choice would affect your insurance premiums.

5) Use Rebates To Your Advantage Dealers often offer attractive rebate promotions to close sales. If you already have financing in place, you could use the rebate and apply it to the down payment of your new car--rather than taking a check. This may even reduce the sales tax due on your new car.

6) Keep Time On Your Side Your strongest negotiating position will come at the end of the month or toward the finish of a model year. Dealers are usually more willing to strike a deal when they have quotas waiting to be filled. And, if an offer doesn't measure up to your needs, don't be afraid to walk away.

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