Next time you buy a car, this quick cheat-sheet will help you get the best deal on the right vehicle for you (and your budget).
Before You Shop
Get Your Budget Pre-Approved
Before you break out the calculator and the budget spreadsheet, try getting pre-approved for an auto loan. Your credit union or bank will tell you how much you can afford and give you an idea of the rates and term options available to you. It’s still a good idea to make sure that the loan payment fits the rest of your budget, but this starting point can give you a more solid number to work with.
Narrow Down Your Favorites
Narrow down your choices to three or four models of vehicles. When you have some options to consider, check the reviews, value, and safety using online services:
Schedule Appointments Ahead
Select a few local listings that fit your criteria and set up appointments to stop by for a look and test drive. A confirmed appointment can save you from waiting around at the dealership for a vehicle that may not be ready yet, and scheduling several in one day can help avoid getting stuck in sales talks for too long.
Check Your Work
You’ve found a vehicle that fits your budget and your needs, but what else should you look out for?
If you planned ahead with some of the steps above, you’ll have what you need to talk numbers. Buyers who have been pre-approved by their credit union or bank have the added benefit of knowing exactly how much they’re pre-approved for and what the rate will be. Be reasonable, but firm, and you’ll find that most dealers are happy to work with well-informed customers.
Put it Through Its Paces
Test-driving someone else’s car (whether dealer-owned or not) can be stressful. Avoid the instinct to baby the car too much just because the owner or sales person is there with you—test important features to see how they react under normal driving conditions:
- Ride Comfort: How does it ride on the highway? Over potholes?
- Acceleration: Give it a little gas (carefully), does it respond as expected? Is there a noticeable hiccup when shifting gears? Check the rear view for smoke while accelerating as well.
- Brakes: Brakes feel different on different vehicles—if you’re moving to a hybrid for the first time the brakes may feel softer than you’re used to, but make sure that the brakes are responsive without being sticky.
- Steering: Does the vehicle travel straight or require a lot of corrections? Does it hug curves or lumber around turns?
- Sound: Take a moment of silence to check how loud it is in the car, especially on the highway. How hard is it to hear other passengers at normal volume?
- Visibility: How hard would it be to parallel park this vehicle? Can you see well enough when turning?
Is it a used vehicle? Have it inspected.
Unless you’re an auto expert yourself, take the car to a mechanic for a professional inspection. Honest owners and dealerships are happy for truly interested buyers to take a final look under the hood before making a purchase. It won’t cost you much, but will give you peace of mind and avoid buyer’s remorse.
Getting a vehicle history report from vehiclehistory.com, Carfax, or AutoCheck can also give you information about past repairs or accidents that might have affected the overall structure of the vehicle.
Make it Official
Fees & Final Price
Before you sign, be sure to read the contract carefully and discuss any unexpected fees. It’s also a good idea to double-check that the final amount shown on the contract is the same that was discussed.
Title & Registration
Once you’ve got your new set of wheels, be sure to get your new license plate before your temporary registration from the dealership runs out. And remember that new rules went into effect in July 2019 that call for sellers to keep the plates when selling a vehicle.
Getting car insurance quotes online is quite easy these days—shop around with different providers or put in a request and get multiple quotes back. At the very least, be sure to get more than one quote. It could save you a significant amount of money each year.
Quick Car Buying Tips
Buying a car is a major financial decision – in fact, it is one of the biggest you’ll ever make.
Just think about it: In the last 10 years, have you bought anything that costs more than a car? A house or your kid’s education, maybe. But unlike a house, a car is not going to appreciate in value. And, unlike an education, an SUV is not going to increase your kiddo’s earning potential.
A car isn’t an investment after all, because you’re not going to receive a return on it. It’s an expense, and the best you can do is to get the maximum use and pleasure from the money you spend. Getting the most out of your car is a matter of careful maintenance. Getting the most out of your money is a matter of getting a good price on the car and a good deal on the related financing.
Here are some tips, options and advice to consider when you are purchasing a vehicle:
- Get preapproved for a loan through your bank or credit union. Preapproval will mean you have one less thing to worry about when you find the vehicle you want.
- If you’re buying from a dealer, buying your car at certain times can often get you a better deal. Negotiating on the final price during times when the dealer will be more motivated to sell is a good way to save.
- Shop around for rates before choosing your financing. Often, you can save on interest rates if you get quotes from a few lenders.
- Refinancing an existing loan on the car you currently drive could lower your rate and monthly payment, putting more money in your pocket – a good thing at any time.
Buying a car is a major financial commitment, but if you do your homework and shop around, you can usually find a deal that works for your wallet.
This article is for educational purposes only. Tulsa FCU makes no representations as to the accuracy, completeness, or specific suitability of any information presented. Information provided should not be relied on or interpreted as legal, tax or financial advice. Nor does the information directly relate to our products and/or services terms and conditions.