New Car Buyers Guide

It is true that it is recommended to buy a used car since in most of the cases this is the better deal - you will avoid getting upside-down on your car loan and save money. However, buying a new car is not necessarily a bad deal. This new car buyers' guide will help you get the best new car deal possible.

1. Build a list of new cars to consider.

   You probably already know what type of car will suit your needs. Make a list of new cars you want that includes their brand, model, options, trim level, and even color. Have in mind that if you are willing to consider several versions of the same car model, this will give you additional bargaining range.

2. Estimate how much you can afford.

   You should have a clear idea of what you can afford to pay for the car you want. Include the following factors when considering your target price:

   • Monthly payment - determine how much you can comfortably afford to spend every month for car payments.
   • Down payment - in order to avoid getting upside down on your new car loan you should make sure you can allocate a big amount of cash (generally at least 20% of the car value is recommended) for the down payment.
   • Trade-in - if you have an old car you will trade in, include the amount you can get for your car trade-in in your calculations.

3. Look around for incentives and rebates.

   Incentives, such as cash rebate, low-interest financing, discounts, "customer loyalty", etc., are worth checking since this may save you thousand of dollars off the new car price.

4. Compare car prices based on the incentives offered.

   Do some research and find out the sticker price, as well as the market value of the cars you consider buying. Add the factor of incentives and rebates you have previously researched and compare the different car deals that are offered based on it too.

5. Locate the car you want.

   You can locate the car you want online since many websites offer the opportunity of soliciting quotes from multiple dealers simultaneously.

   Record the necessary information (such as options, dealership name, etc.) about each car you locate. This will save you time as you proceed with the shopping process.

6. Consider trading in.

   If you have an old car, consider trading it in. Find out how much it is worth beforehand. You may use online appraisers for this purpose in order to get a rough idea of what your car's trade-in value is.

7. Negotiate the lowest price for your new car.

   Start the negotiating process well prepared by researching preliminarily things like the car's sticker price and invoice price. Try not to get emotional and be prepared to walk if the deal doesn't suit you.

The information and interactive car payment calculators that are provided on this site are made available as general assistant guidance in regards to car loans and payments. We do not guarantee that any information or calculations will be accurate or applicable to your personal financial situation, circumstances, or objectives. Accordingly, before making any final decisions we encourage you to consult a qualified professional and get personalized advice.

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