Top 20 Pieces of Advice on How to Buy a New Car

Top 20 Pieces of Advice on How to Buy a New Car

Buying a car can be stressful. The process has been painful enough for some drivers that they can’t even stand to think about the automotive industry. The good news is that buying a new car still can and should be a positive experience. Valley Chevy Dealers in the Valley of the Sun respect our customers and try to make sure they have a pleasant time buying a new car.

To that end, we’ve compiled some of the best tips for anyone who might be looking at new cars right now. Whether you plan to buy or lease a new car, you’ll find something on this list that can help the process go more smoothly. Best of all, these tips will also help you get a great deal.

 1 – How to Negotiate a Lease

TikTok user @mollybaxter_cars gives some good tips for anyone who plans on leasing their new car. She lays it out into a few simples steps:

• First, decide exactly what you want in your new car. Consider all of the details, even beyond make and model. Think about the trim level, any options you want, and even the color. Once you know what you’re looking for, you’re ready to contact the dealership with your specific ask.
• Second, contact a Chevy Dealer in the Phoenix Metro area and tell them exactly what you want. Ask them to give you their very best offer upfront to earn your business. Make sure to be clear about the model and trim level you decided on in the first step.
• Next, you’re ready to shop around and see if you can get a better deal from another dealership. Don’t be afraid to shop around a little bit and see if the next dealership can beat the first one’s deal. 
• Repeat the previous step as needed until you’re confident you’re getting the best new car deal you can find. You may even be able to use online resources as you learn more about what makes a good deal for the specific car you want.

2 – Do Your Research on Price

Many new car shoppers plan to buy the vehicle instead of leasing it. Most people who want to buy a car are very interested in knowing how much money they can expect to get off the price. Often, someone will ask our salespeople what percentage of MSRP is a good deal. The answer to that is that it really depends on the specific vehicle and a variety of other factors. Look at prices for the same exact car at other dealerships, and consider the difference between MSRP and invoice price.

3 – Stick to the Budget

Some people have a hard time figuring out how much they can afford to spend on a new car. This is especially true when you’re leasing or financing the vehicle since you’ll have to decide how much you can pay upfront, as well as how much you can pay monthly going forward. We’ve heard some “rules” about what percentage of your income should go toward car payments, but every situation is unique.

Don’t forget that it also costs money to have a car even beyond what you actually pay for it directly. Things like insurance, gas, and regular maintenance can add up if you haven’t planned for them. Once you decide on a budget, don’t get tempted to pay just a little bit more. Stick to the plan.

4 – Be Polite

This is a good rule in almost every situation in life, but it can actually save you money when you’re buying a car. Treat the salesperson with respect because it’s the right thing to do and will help them have a better day. As an added bonus, they’ll be more likely to fight for you and try to get you the best possible deal on your car. At the same time, though, you don’t have to give away too much information. Try to deflect questions about your budget until later in the negotiation.

5 – Use the Internet

As mentioned in tip one, there are some great online resources that will help you get the best deal on a new car. For one thing, you can get quotes from multiple dealerships without having to leave your house. It used to be that you’d have to drive around to a bunch of different businesses if you wanted to shop around, but now it’s extremely convenient. Use some of the digital tools at your disposal, and you’ll be very well prepared by the time you show up for your test drive.

6 – Make the Most of Your Test Drive

Don’t be afraid to take your time and ask questions. The salesperson has studied this car, and you don’t have to pretend to know everything. Ask them to show you how to use some of the features so you can see everything in action before you make a decision. 

Next, think about how you’ll use the vehicle in your daily life. Try to take your test drive in a way that simulates your daily commute and other activities (within reason, of course– it’s best not to go off-roading in a dealer’s car). We’ve even seen people bring dog crates, golf clubs, and children’s seats to make sure they fit in the new vehicle.

7 – Best Time to Buy a Car

Sometimes you just need a new car right away, in which case it’s best to get one as soon as possible. If you have time to wait and see, though, keep an eye out for great deals. You might be able to find one at the end of a model year when dealers are making room for the newest models. It’s possible you won’t be getting the latest and greatest features, but you can save a good deal of money.

You can also watch out for sales events or other times when dealerships cut prices dramatically. Check for manufacturer incentives and other things like that. If you do your research, you’ll be able to tell when something is an especially good deal, and it’s time to make your move.

8 – Take Your Time

Buying a car can be overwhelming for a lot of people. You’re making a big decision, spending a lot of money, and want to make sure you get the best possible deal. Try not to let it get to your head. If you need to check something online, don’t be afraid to get your smartphone out. Take advantage of all of that technology and information in your pocket.

The act of taking a step back from the negotiation can also help you calm down and avoid getting emotionally attached. If you’re looking at the last mid-engine Corvette in the state, maybe there’s some sense of urgency. Otherwise, though, you won’t lose access to this car or one exactly like it just by waiting a while. If you’re feeling uncertain, you can always walk away and come back another time. The dealership may even lower their price to try to get you back.

9 – Understand the Process

Just as it’s important to do your research about the specific car you want, it’s important to know about the process itself. This is especially true if you’ve never bought a new car before or haven’t done so in a long time. When you’re comfortable with the process, you’ll be able to navigate the negotiation more effectively. Know terms like MSRP and invoice price. Prepare for the process of negotiating with a salesperson who is also talking with their sales manager.

10 – Know How to Calculate a Lease

This is another great tip from TikTok user @mollybaxter_cars about getting the best lease possible. If you’ve never leased a new car before, understanding the cost can be a challenge. There’s more to it than just the amount due at signing, the security deposit, and the monthly payment. Your local dealership in Arizona will be able to walk you through all of the details, but it’s still good to go in already armed with some knowledge.

It’s important to know about the money factor and the residual. The money factor determines financing charges. Molly explains, “the higher your money factor is, the higher your lease payment will be because there will be more financing charges associated with it.” This is somewhat like the interest when you buy a car, except that it’s for leasing instead of buying. You can even convert a money factor to an interest rate by multiplying your money factor by 2,400, she says.

The residual may change based on how many miles per year you drive and the length of your lease. The residual will tell you a lot about how much you’d have to spend if you decide to buy the car at the end of your lease. Multiply your residual (which will be a percentage) by the MSRP of the vehicle to determine what the car will be worth at the end of your lease. That’s what you’ll be able to pay to purchase the vehicle at the end of your lease.

11 – Don’t Get a New Car Too Soon

If you’re still paying for your old car, it may be too soon to buy a new car. Again, every situation is different, but this is a great rule of thumb. If you need a new car, but still owe money on your old car, it’s best to see if you can pay off your previous loan with one large cash payment. Otherwise, you’ll be paying for two cars at the same time. To take this a step further, we’d also recommend waiting until you’ve saved up enough to make a big down payment that can minimize your loan.

12 – Don’t Buy Too Late

Buying a car too soon can get you into financial trouble, but buying one too late can also cause problems. If you drive your vehicle until it totally stops working, you won’t be able to get very much in the way of the trade-in value. This also puts you in a tough situation because you’re stuck without a working car. People in these situations often end up buying cars without doing enough research, so they either get the wrong car or the wrong deal. If you’re going to trade in your old car, try to do that while it’s still working well enough to be worth something.

13 – Don’t Let Emotions Guide You

We recommend that people try to think of this as a business decision, just like when you buy a home or anything else that’s very expensive, getting a new car can have big financial implications for you. At the same time, the salesperson’s job is to sell the car for the highest price possible. This doesn’t have to be an ugly battle, though.

As long as both sides are ethical and treat each other with respect, you and the dealership should feel like you’re working together toward something mutually beneficial. Negotiating is a process of give and take. You may not get the exact price you were hoping for, but definitely don’t agree to anything over the maximum budget you already decided on.

14 – Think About Sales Quotas

We’ve already discussed the importance of timing as it relates to sales events and incentives. It’s also important to think about the time of the month and even the time of the week. If you go on a weekend when the dealership is busy, it will be harder to get a lot of attention and a flexible negotiation. You may want to think about a weekday visit.

Either way, it’s also good to go at a time when the dealership is trying to hit a quota. This could be the end of a month, the end of a quarter, or the end of a year. If the dealership is feeling some pressure to meet their goals, they may be willing to give you a great deal for the sake of completing the sale.

15 – Get Preapproved for a Loan

Getting preapproved for a loan is useful in two main ways:

• It helps you figure out your budget and monthly payments.
• It gives you a tool for negotiation. The dealership may try to give you a better financing offer.

16 – Check Your Credit Score

Use a reliable service to check your score. Once you know what it is, you’ll be able to figure out what kind of new car financing deal you can expect. We recommend checking this in advance so you can try to improve your score or correct any bad information before you apply for a loan.

17 – Choose Your Car

This seems obvious, but some people try to buy a car without having a strong idea of what they want. If you’re having a hard time narrowing it down, you can try steps like these:

• Decide which type of vehicle you want in terms of size and design.
• Look at vehicles that match your budget.
• Think about must-have features.
• If you still can’t decide, test drive the vehicles before you start shopping for offers.

18 – Think Big Picture

Some people try to make the whole negotiation about monthly payments because they’re worried about the budget. This is a good way to overpay for a new car. Don’t lose sight of the overall amount you’ll be paying for your car.

19 – Go for a Short Loan

One good way to minimize the total amount you spend is to keep the loan as short as possible. Long loans are risky because they may last longer than the vehicle. You’ll also spend more on interest.

20 – Manage the Trade-in Separately

If you’re trading a vehicle in, do enough research to know whether you’re getting a good price. Also, don’t start negotiating that price until you’ve agreed on a sale price for your new car. Negotiating multiple things at once can get too confusing.

Test Drive a New Car in Arizona

The single best tip for buying a new car or getting a lease is to work with a dealership you trust. Valley Chevy dealerships are committed to serving Arizona residents as well as we can. Find a location near you and stop by for a test drive!

Featured Image: Shutterstock / Hedgehog94