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A Complete Guide to Buying a New Car

Updated on October 22, 2012
My New Car
My New Car

Buying a new car in this economy is like a dream come true but it can be realistic if you have spare cash and all the time to haggle with determination.

Recently I bought my new car and below are a few steps that I followed and would like to share it with you.

  • Decide on what KIND of car you want

Look at your needs and wants and decide on the type of car needed. Choose between a Sedan and a SUV or a Van depending on YOUR needs. Also calculate how many miles the car will be driven and choose the hybrid versus a regular car.

You could also go to Consumer to get the car facts of the model you have chosen.

  • Chalk down your NEEDS for accessories.

Every car comes loaded with umpteen accessories. Dealers always show you the best, but you have to prioritize what attachments you need in your car. Decide on your needs and shortlist them prior to getting to a dealer.

  • ·Find a DEALER around you and check for the pricing.

When I was looking into prices for my car, I saw that the dealers in remote areas had a huge discount on the same car model as compared to dealers in a chic locality. I preferred to drive the distance to save on $$$. Choice is yours to make.

  • · Decide on how much YOU want to pay.

Do the Maths by looking into the car of your choice and adding up the accessories you want for your car. Compare that price with the Kelley blue book.

  • Visit the Car Dealer and go for a test drive

Body language plays an important role when you and the salesperson are sitting in the car. He will bombard you with questions and some of them will be personal such as income, driving habits, and lifestyle. Avoid answering that question.

When test-driving look out for the sounds in the car especially if test-driving a hybrid. Do NOT turn on the radio.

Do not trust the salesperson over the knowledge of the car and stay firm with your research and homework. That will effect when you are finalizing the purchase of the vehicle.

  • · Stay firm on your price/quote.

Test drive is done and you are escorted to his office. He gives his price for the car and you just give a slight smile. That kind of body language will make him ask you for “your” price. Utter it and just stay quiet.

The salesperson will wiggle a bit and laugh. You stay put and have no reaction on your face.

  • · Kind of Payment

Seeing no reaction from you. He will ask you on how would you like the payment of the car to be: Mortgaged payment or Full payment.

Answer it depending on your financial capacity.

  • · Salesperson will go to speak to the Manager

Salesperson will ask to be excused saying that he is going to speak with the Manager about the quote that YOU have offered him and will be back in a jiffy.

This is the time when he is going to take forever! Hang in there and talk about anything to your partner but the quote submitted to the dealer. No Second thoughts!

  • · Salesperson comes back

Salesperson comes back saying that the manager does not agree with it and asks you to rethink your quote.

Stay firm. You have done your homework and have compared your pricing to the Kelley Blue Book. If you are within the range then, the dealer/manager will agree with your offer.

  • · Depart in a cordial way

Nothing worked out and you just walk away in a cordial manner. No turning back!

  • · Salesperson comes rushing to you!

Voila, you are sitting in your car and the salesperson comes to you that the manager would like to speak to you.

You keep a straight face and walk towards the manager. Greet him and without any hesitation, he agrees with your numbers. You can’t help but smile.

Buying a car needs a lot of patience since; a lot of drama goes into it. After the price has been agreed upon. You are escorted to the Finance department who reportedly handles your payment and makes you sign a whole lot of papers.

Remember: They will do your Credit Check. Make sure you are aware of it. You should be aware of it.

In my case, my sales person did not inform me about it and that is against the law to not notify the customer prior to getting it done. I rebelled and was thrown in a $500 discount.

You enter the Finance department after a few hours wait (WHY!)

Their excuse is that many cars are being sold today (Yeah, Right!)

After the cordial handshakes, he will sell you many offers such as paint warranty, car warranty, service warranty etc. Make sure you have read all about it prior to coming to the dealer. Be certain of what you want rather than discussing it there. You will show your weaker side if not knowing the above and could get duped.

Tip: A customer has to do his homework of his needs/requirements/pricing before he steps into the dealer store. It sure is a lot of work but gives a good impression to the manager and salesperson and the customer lands up getting a good deal.

The confidence with which you argue with them is worth each penny spent on the car.

Would you like to research about the car prior to stepping into the Dealer Showroom?

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    • Paolocruz profile image

      Paolo Cross 4 years ago from Philippines

      Thanks to this. Another thing that one should research about is the after-sales services of the company. :) Great guide, I voted this up!

    • profile image

      Arun 4 years ago

      wow - all the steps nailed down - good job :)

    • Brett.Tesol profile image

      Brett Caulton 5 years ago from Thailand

      Very good tips for saving money when buying a car. What you say about walking away is so true. The best way is always to negotiate to the point where you almost have a deal, but they swing the other way ... then walk ... but, be prepared to really walk if they can't do the deal you want.

      Shared, up, useful, pinned and tweeted.

    • Glenn Stok profile image

      Glenn Stok 5 years ago from Long Island, NY

      You gave a very thorough explanation of what a car buyer needs to do, from the initial desire to buy a new car -- to the end result, how they will buy it. Very well done. Voted up and useful.

    • b. Malin profile image

      b. Malin 5 years ago

      Wonderful Tips Ruchora. I've brought 2 new cars in my life time...One lasted 14 years and now my present car is going on 10 years. I am Not a car person, don't have to have a new one every few years...Thanks for sharing, Good, Sound, Advice...And Congratulations on YOUR new Car!

      I now look forward to Following your Hubs.

    • midget38 profile image

      Michelle Liew 5 years ago from Singapore

      Great tips on turning the tables in a sale. You drive a hard bargain, Ruchira!! Thanks for sharing this!

    • Vellur profile image

      Nithya Venkat 5 years ago from Dubai

      Great hub. Anyone will end up with a good car if they read this hub and follow each step. Voted up.

    • rajan jolly profile image

      Rajan Singh Jolly 5 years ago from From Mumbai, presently in Jalandhar,INDIA.

      Very sound advice and tips, Ruchira. I always do a thorough research for the purchase of any equipment and purchasing a car is a very important decision.

      Voted up & useful.

    • vocalcoach profile image

      Audrey Hunt 5 years ago from Nashville Tn.

      This is great advice! Wish I had known this all long. I'll pass this on to my family and friends.

      You've helped many people by writing this hub. Voted up, useful, awesome, interesting and of course, will share too. Thanks, Ruchira!

    • Lipnancy profile image

      Nancy Yager 5 years ago from Hamburg, New York

      I am very blessed that a close relative is a car dealer so I do not have negotiate a price. Great hub and great advice, so glad I don't need to use it.

    • anglnwu profile image

      anglnwu 5 years ago

      YOu got a new car--congrats! Good tips and I hope to remember them when I next buy a new car--not anytime soon, unless I win the lottery!

    • Frank Atanacio profile image

      Frank Atanacio 5 years ago from Shelton

      a very good Hub Ruch.. everybody has to make a living and salespeople have to make a living too.. but what makes a good customer is a prepared customer.. this complete guide is a very good tool to prepare...thank you for sharing...

    • Ruchi Urvashi profile image

      Ruchi Urvashi 5 years ago from Singapore

      Good tips. I will be buying new car soon. It will surely help me and other readers.

    • profile image

      IntegrityYes 5 years ago

      That is so awesome and I definitely voted up.

    • profile image

      KDuBarry03 5 years ago

      In my persuasion class, we covered about how car salesman persuade you into their prices because they normally jack up the price to make a better commission. You definitely helped reminding me a lot of things I learned and definitely spot on with the facts. Thanks, Ruchira! voted up and shared!

    • always exploring profile image

      Ruby Jean Fuller 5 years ago from Southern Illinois

      Ruchie are you looking for a job? My Son is a dealer and he would hire you in two seconds flat. Ha..Great info. When you do your homework, you're a winner. Cheers..

    • teaches12345 profile image

      Dianna Mendez 5 years ago

      My husband is the car buyer in our home. He's pretty good at researching prices, etc. and dealing with salesmen. Great tips for car buyers, it helps to know what is coming at you.

    • Genna East profile image

      Genna East 5 years ago from Massachusetts, USA

      I wish I had this hub when I purchased my new CRV two years ago. This is a wealth of information, and sage advice.

    • fpherj48 profile image

      Paula 5 years ago from Beautiful Upstate New York

      Oh Ruchirs...where was this fabulous hub when it took me a solid YEAR, to finally purchase a car? wouldn't believe the major career I made out of researching and finding THE car for me. I had a list of so many specifications, I drove my poor husband crazy.....especially since I was sharing HIS car for that year! lol.

      This is excellent advice, my dear, and I congratulate your wisdom. It requires all of this, to make a sound, economical choice in a vehicle. We should never just quickly and haphazardly go out and grab the first car we see......we pay for it dearly, as time goes on!...UP+++

    • sholland10 profile image

      Susan Holland 5 years ago from Southwest Missouri

      Great advice, Ruchira! The Kelley Blue Book is a great resource. You are right in letting people know they need to try to ignore the distractions by the salesman. You know the information from your research and know what you are looking for. The ball is in your court. :-)

      Great hub! Votes and shares!

    • Denise Handlon profile image

      Denise Handlon 5 years ago from North Carolina

      Gosh, it is always such an anxious time for me to try to negotiate for a car. Glad I'm ok right now with the one I have. Nice job with the info here, Ruchira. Up/U

    • billybuc profile image

      Bill Holland 5 years ago from Olympia, WA

      I have a natural distrust of car salesmen; maybe it's because they are generally untrustworthy. LOL Great tips and you are right on with your suggestions!

    • Ruchira profile image

      Ruchira 5 years ago from United States

      Thanks Janine. I recently bought mine and since it was fresh in my mind...broke it down.

      I am glad I was clear :) Cheers!

    • Janine Huldie profile image

      Janine Huldie 5 years ago from New York, New York

      Actually did just this a few years ago right before having my first. We needed a bigger vehicle and went through a very similar process to purchase a Jeep Liberty that you described here. You did a great job and really broke down the process step by step perfectly. Have voted and shared too :)