Eleven great tips for buying a car

Tips for Buying a Car

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• Start an auto savings account

  Saving early is the best way to reduce your total debt and monthly payments. By saving early, you will develop a habit of budgeting for auto-related expenses and you will be more prepared to make payments once you find the right car. This is especially helpful for your first car. Set up a savings account dedicated to your “car fund” and don’t use the money for anything else. So how much should you save? You should save as much as you can realistically afford. A good rule of thumb is to save as much as you would spend on the auto loan. If your payment will be $200 per month, try to save $200 per month or more. Any expenses that you can reduce will help you save faster and reduce your long-term debt. One great way to get into the habit of saving is to set up automatic deposits into your savings account from a paycheck.

• Determine what you need and want before you start shopping

  Take time to determine what features and options are a must and which options are just on your wish list. By taking time to do this in advance, you can save yourself some headache and sticker shock, and also get an idea about what options you can afford. Important things to look at before purchasing are the type of transmission (automatic or manual), gas mileage, size of the engine, front or rear wheel drive, interior options and paint colors.

• Research first

  Once you’ve decided what options are necessary and what features you’d like in your new vehicle, it’s time to research your choice. Online resources provide quick and easy access to valuable information. Visit manufacturer websites, review consumer reports and reviews, and learn about insurance options and requirements. This is the perfect time to visit dealer websites, auto-listing sites like nadaguides.com and private sellers. Some useful sites include kbb.com, nada.com, Edmunds.com and consumerreports.org.

• Once you find a car, know its value and pricing

  It’s important to know the value of cars you’re interested in purchasing. Check out consumer price guides like nadaguides.com and look up the trade-in value, private party value and retail value of the cars you’re interested in. This will give you perspective on the value and selling prices of vehicles from different sources, and help you find a price that you’re comfortable paying. Knowing the value will help you negotiate with the dealer or seller and help you get a better deal.

• Get pre-approved for an auto loan

  Getting pre-approved for an auto loan is one of the best time saving ideas for someone buying a car. By getting pre-approved for a loan in advance, you find out what your price range may be, what your payments are, and how much you can afford. Knowing this information will help you narrow your search and find the car you’re looking for. Getting pre-approved also helps you save time during the purchasing process, and helps you avoid dealer financing options that may not be the best deal for you. You have the opportunity to shop around for financing options and get the best interest rate and terms for your loan. Then, when you decide to purchase, you’ve already got things set up and ready to go.

• Look for participating dealerships

  When you’ve been pre-approved for your loan, go to any of Wright-Patt's participating dealerships, sign a few papers to finalize your loan, and you’ll be on the road in no time.

• Visit the seller and shop the competition

  When you’ve narrowed your search and found dealers you’re interested in visiting, it’s time to go out and see what they have to offer. Since you’ve done your research you’ve likely got a good idea what they have to offer, but seeing the cars in person is important. Always shop the competition and ask around. Comparison shopping and bargaining will save you money in the long run. When dealers compete for your business, you’ll likely come out ahead.

• Review your options and test drive the car

  After you’ve found a few options you’re interested in learning more about, it’s time to inspect and test drive the vehicles. According to autotrader.com, the following items are important to recognize during a test drive.
  

  • Does the vehicle have enough head and leg room for everybody who will regularly ride in it?
  • Does it have the acceleration you're looking for?
  • Does it slow smoothly when you brake?
  • How does it feel on bumpy roads?
  • Are the interior controls and displays easily accessible and readable?
  • Are there any abnormal noises that may suggest problems?

• Ask for a vehicle history report

  It’s important to find out as much as you can about a vehicle before you buy it. NADA suggests getting a vehicle history report from CARFAX. Most dealers will provide a vehicle history report when asked. You can also purchase a subscription to CARFAX, which allows you to pull a comprehensive report when you have the VIN of the car you’re interested in. Reports show model-specific Safety and Reliability Reports, whether the vehicle has ever been totaled, flooded or stolen, if its odometer has been tampered with, and plenty of other useful facts that you’ll want to check out before buying the car.

• Ask a trusted mechanic’s opinion

  If you’ve found a car you’re interested in purchasing, it’s always a good idea to have a trusted mechanic inspect the vehicle for you. Make sure they check for commonly worn parts, any signs of improper repairs, damage or mechanical issues that most people won’t notice. By taking the car to a third-party, you’re not relying on the word of dealer or seller.

• Know what you’re negotiating – price first

  Finally, when you’ve decided to purchase the vehicle, know what you’re negotiating. Always negotiate on price and not monthly payments that can be adjusted by lengthening the life of the loan and doesn’t save you any long-term debt. Negotiate price before mentioning your trade-in if you have one, and remember that the trade-in price can also be negotiated. Your research will help you prepare with valuable information. Other factors to consider in your negotiations are dealer-added extras like rust-proofing, custom floor mats, security and audio systems, and performance upgrades which may be cheaper when purchased later. After considering all the factors that go into the price of the car, you can be comfortable you got the best deal on your purchase.