Seven Shopping Tips for First-Time Car Buyers

Buying your first car can be overwhelming. There are an abundance of available vehicles and commercials touting why this or that car is the best. Additionally, if you’re in the market right now, the first hint of fall usually means that many dealerships will be offering deals and incentives to get people to buy this year’s models to make room for new cars and trucks.

So, how do you find the best deal on a new vehicle?

The following list will help arm you before you head to a showroom or log onto an online car buying site:

1. Start reading vehicle reviews. Kelley Blue Book, Edmunds and Consumer Reports are great places to start because they employ professionals whose jobs are to borrow vehicles from automotive manufacturers to test for the public’s information (which doesn’t sound like too bad of a gig to me). Like movie reviews, car reviews can be somewhat subjective depending on what your personal preferences are, but they can also help find cars within your price range, and learn their pros and cons without having to spend a lot of time behind the wheel yourself.

2. Know what you want in your car. Develop a list of features you want in your new car to help filter your search and aid in comparison shopping.

For example, growing up, did your family always own cars of a specific make and now you want to upgrade to the latest model? Are you looking for a car to accommodate your growing family? Do you have a long commute to and from work, making good mileage a better choice for you? Is the latest in in-car technology an absolute must-have?

Showroom vehicles are often configured to showcase their best and newest features. However, if you’re looking for certain bells and whistles, don’t be afraid to stand your ground and move onto a different dealership if you can’t get a car that’s outfitted exactly as you’d like.

3. Start shopping for auto insurers. Insurance is an important part of the shopping process because it can give you a sense of your monthly premium based on the car you select. For example, luxury vehicles will have higher premiums than economy cars. If you’re looking to save some cash, remember to consider insurance expenses before signing on the dotted line. Mercury Insurance offers some of the lowest rates, including discounts for vehicles with high safety ratings and certain safety features. Be sure to speak with a local agent to see which discounts you may qualify for at the time of your purchase.

4. Set your budget. First, consider your down payment, monthly income and expenses to determine the payments you’d reasonably be able to make towards a vehicle. Then think about the true cost of car ownership, which includes gas, financing, maintenance, repair costs, insurance and depreciation. Doing the extra legwork early in your search to find this information will help you set a realistic budget and, when you compare vehicles, will show which car is the better value overall.

5. Get your financing in order. Dealerships usually work with preferred lenders to help people finance their vehicles if they aren’t paying in full. However, credit unions or your personal bank may offer better interest rates so you may want to pursue a loan as an alternative.

6. See what others have paid. TrueCar.com is a website that allows consumers to view what other people have paid for similarly equipped vehicles in our area. This will allow you to know a price point you can rightfully ask for when you walk into a dealership.

7. Look for deals and incentives. Auto manufacturers will often list their current sales, deals and incentives on their websites and U.S. News & World Report lists the best car deals, which is updated regularly. You may also get a better deal shopping later in the day or at the end of a sales period when dealers need to “make their numbers.”

Finding your next new car is an exciting time. Try to enjoy the shopping experience, and most of all, enjoy that new car smell!

Don Degain
Oakes & Associates Ins