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How to Buy a New Car? Things You Must Consider

Updated on March 28, 2015

New Car Buying Process

If you are confused when you ask yourself, "How to buy a new car?", then you must follow the time-tested method of buying a new car. Sure, you can buy a new car on your own way, but if you are not well-prepared and have not taken advantage of experienced people's experience, you will most likely end up paying much more money and incurring fees and extras you may otherwise don't need.

In today's economic circumstances, earning money, whether from a job or business has become grueling, so as I am assuming, most of people do not want to throw their money away on something that may in fact cost much less. At the same time, for car dealers, selling cars is their business, so they need to earn as much money as they can on car selling. No doubt that there are honest people out there, but there are unscrupulous people as well. Therefore, you must do your homework to be well-prepared and well-educated.

There is a strategy that the dealer adopts to coax money out of you, especially that they pay for the advertising companies to attract clients. If you do not do your homework beforehand, you will most likely incur extra cash. The problem is that extra cash can extend to few thousands of dollars, so make sure that you arm yourself well to have control of the whole process.

Being well-prepared and well-educated is the most important thing in the process of buying a new car. Because you will have the power needed in choosing the most appropriate car, haggling to reach the most appropriate price, decreasing the fees, warranty, insurance and finance rates to minimum. Do not forget the taxes.

It is in your favor to take advantage of the considerations and tips contained here, because it may enlighten your insight as to what needs to be done to buy a new vehicle that is reliable, high quality and affordable. Also, by taking advantage of these considerations and tips along with the internet tools, the power of negotiation will proceed on your terms not the dealer's.


New Car Buying: Considerations and Tips

  • Time: It is strongly recommended that you buy the new car in certain times, because at these times you are increasing the likelihood of acquiring the new vehicle at very good price. For example, in the weekends, most people go for shopping cars so that the dealers or salespeople will increase the prices because they see much demand. On the other hand, if you go through weekdays, you will find that the prices are more negotiable. Another time would be the end of December and from July through October. At these months they sell off models at lower prices to free space for new ones.
  • Budget: Unless you are wasteful person, you want a car that is affordable. Bear in mind that the cost of the car does include fees other than the price tag of the car. These fees may include insurance, warranty, loan rates, maintenance and fuel consumption. You can imagine how much does it take to research every and each aspect of the process to achieve the most savings. By setting a budget that is conform with your salary or revenue. Experts at Edmund' say "Make sure that your monthly payment does not exceed 20 percent of your salary". So set a budget and begin to shop according to that budget.
  • Type, make and model: If you are not already determined on a specific car, you should research online the type, make, model of cars to determine a car that falls into your budget scope.
  • Price and Internet: The price of the new car is the first expense you will encounter. Of course prices vary depend on the type, make, model, popularity, reliability, fuel efficiency and comfort level. When buying a new car, you are required to identify the invoice price, MSRP (Manufacturer Suggested Retail Price). Thanks to the advent of the Internet, you can get price quotes. Those price quotes are very helpful when negotiating with a dealer or salesperson, because you can use them as a springboard for negotiation.
  • Dealer's strategy: Most car dealers want to earn the most money when selling a new car. They may attract you with a zero or a low loan rate, but at the same time, they will increase their profits across other things such as add-ons or extras or fees. If you are a trade-in buyer, they may give you good price for your trade-in, but charge you full MSRP and increase your loan rate. You should be armed with all the information about the car you want or you will end up incurring unneeded extra money. For the best deal, get the most money for your trade-in, low MSRP, low APR (Annual Percentage Rate), low fees and no extras.
  • Comparison shopping: The abundance of car companies that most of them have online websites will make tracking down the best price in addition to the best loan rate and best warranty is easy and you can do that from the comfort of your home.
  • Advertising illusion: Car companies and dealers in turn are using a common way of advertising that will easily attract you and make you feel that buying a new car is a piece of cake and affordable regardless your budget. Make sure that you inquire strictly for everything and read the fine print carefully. Do not fall victim to the advertising illusion.
  • Payment: Unless you are capable of paying the car in cash money, you are going to finance the car and take a loan. It is highly recommended that you take the loan from a bank, credit union or online (there are lenders online). Also, make sure that you pay higher down payment to decrease the rate that you will pay over the monthly payment.
  • Loan and warranty: While you can get your loan and warranty at the dealership, it is much better to get them at a cheaper cost by searching for quotes online. By doing that, you unload the extended cost, you may incur at dealerships.
  • Bad credit facilities: If you ever see an advertisement says that you can get 1.9% for your loan, bear in mind that it is reserved only people with perfect credit. Most people will not qualify, however, there are institutions that you can get a low rate with bad credit.
  • Incentives and rebates: Although many people think that the invoice price is the amount the dealer pays for the car manufacturer to purchase the car, there are incentives and rebates that the manufacturer grants the dealer. So if you buy the vehicle at the invoice price, the dealer earns thousands of dollars. When you negotiate the price you should know how much the dealer paid so you can start haggling at that price your way up until you get a reasonable price for the car. There are advertised and secret incentives and rebates. You can get accurate and up-to-date information about the car you want in the package from
  • Trade-in? If you are trade-in buyer, it is highly recommended that you should know the value of your trade-in before you go to the dealer. Do not go to the dealer while you are unaware of the value of your used car. Because by doing so, you give the dealer the chance of undervaluing your trade-in. Buying a new car is a major purchase and by knowing the value of your used car will definitely save you much money.
  • Test drive: The car that you are going to buy will become a big part of your lifestyle, so you must test drive the car before deciding whether you buy it or not. Maybe when you test drive it, you feel that it doesn't have the comfort level you want or you may discover any other inconvenience.
  • Foresight: Also, because the car that you will purchase will become a part of your life, it is strongly recommended that you check out its reliability and safety before you buy it. You can do so by heading to famous websites, such as Euro NCAP. There you can check the crash test and safety ratings for almost any car.
  • Consumer Reports: check the car reviews and ratings at
  • Consult: If you have a friend or relative that have the same car that you want to buy, consult them to have an idea about the cons and pros of that car.


Buying a new car can be enjoyable and easy if you put forth some effort to research and educate and familiarize yourself with all aspects of the car buying process. On the other hand, if you rush into buying a new car without arming yourself with the necessary information, you may end up overpaying and regretting your purchase.

Muhammed F Omran wrote this article about buying a new car. Go to for the latest, strategic, to the point and actionable car buying tips.


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