New car buying - what you need to know before getting started

When is the best time for me to buy a car?

Basically, the best time to buy a car is when everyone else does not want to buy a car. For example, at the end of December, this is the time of year when everyone is out buying holiday gifts, and their cash is running low. The dealers are left empty, so they lower prices to bring in buyers. From the months of July to October, is also a good time to buy a car. This is he time period where dealers lower prices to sell off cars so that they can make space for new models.

Buying a car during certain weathers can also affect prices. If it has been raining for several days dealers lower car prices, because people do not buy cars during a rainy day. 

What type of dealer should I buy my car from?

 Buy a car where salespeople are not on commission, but on a salary. They still want top dollar, they just don’t have commission fever. Some no haggle dealers give good deals, while most do not. Shop in a competitive market like Houston, Texas, with 7 Nissan dealers to shop your deal around. Make your offer as shown in this site, bounce it off all the car dealers, and even "No Haggle" dealers will bite. Many "No Haggle" dealers have a "low" price on the windshield that you find out later included the rebate, so they actually charged you (MSRP - Rebate), which is no bargain. Dealing with a fleet manager can be helpful, since they are not on commission. If you make an appointment, show up, it’s bad business if you don’t. Good salespeople like an informed consumer; it is easier to sell them a car, at a FAIR price for both parties.

Ask lots of questions

Never feel uncomfortable asking your dealer questions. And always remember that you are always free to walk away from the deal. So keep asking questions until you are comfortable that all of your concerns have been addressed. If that doesn’t work, ask for all the numbers in writing, and let them know you are going review everything and call the next day with your decision. Many salespeople will do almost anything to prevent your from walking. That’s because statistically, only one out of every 50 people will actually come back to the dealership. Do not fall for "this deal is only good today". Unless there is a factory program ending that day (rebates, special financing or dealer incentives) and they can prove it in writing, there is no reason they won’t offer you the same deal tomorrow.

If it is a new car and the one you are considering gets sold, the dealer can almost always find you another. Be careful however on used cars, since no two such vehicles are the same. So if you found your perfect used car, make your decision or risk it being sold to someone else.

Leave emotions out of the transaction

It’s easier said then done, but try not to fall in love with a car. If you are not willing to walk away from it, you stand a very good chance of paying too much. Be honest with your sales representative. Let him know up front if you find the right automobile and what you are willing to pay. This will give the dealer the incentive to give you the best possible deal or risk losing your business. The better prepared you are the easier and more pleasant your car buying experience should be.

Know what you want

The key to this car buying guide: Come prepared. Know what you want before you walk on the lot. You don’t need to know exactly what make, model, and color, but you should have a basic idea. It is also a good idea to know whether you would like a new car or a used car. Would you rather have a slightly used car that is exactly what you want or a new car that might be a little less than what you want, but its brand new? Often the payments for a used car can end up the same as a new car. That’s because banks usually charge higher interest rates used a used car.

Talk price not payments

Never talk payments with the dealer. Negotiate on the price of the car only. If a dealer talks only payment with you, it usually means they are avoiding the real issue -price. On the other hand, many people finance their cars and all that really matters is getting what they want for a payment they could afford. Many sales representatives are taught to get you thinking payment rather then price. If you do your homework you will know what price automobile fits your monthly budget. All car loans and lease contracts will fully disclose the cars price. In the case of a loan, it will usually be listed as the "cash price" for vehicle. In a lease, the price will usually be marked as the "cap cost". The base price for the automobile (before tax, license, documentation fee, any other state or local fees and any dealer added options) should be exactly what you and the sales people agreed on. If you have questions about this car buying guide, check out our helpful resources.