John Hutchinson from Red Rocket Auto Tech has 10 tips for people planning on buying a new car.
Tips 1-3 -- Preparation
1.) Know what you need -- Some people rely on the dealership to tell them what they need.
2.) Test drive the car -- 1 in 6 buyers never test drive a car before they buy it; you have to drive the car to know if you like it.
3.) Make sure you prequalify yourself for financing before you head to the dealership
Tips 4-6 -- Financing
4.) Shop your financing separately -- Do not only depend on the dealerships financing; prequalify early to set affordability limit.
5.) Do not shop a monthly payment -- Resist making your payment a negotiating point; sales staff may manipulate finance terms.
6.) Forgetting Insurance -- New car loans require full-collision coverage; check rates before shopping.
Stay tuned for more tips next week in Part 3.
Tips 7-10 -- Negotiation
7.) Starting negotiation at MSRP -- Look for the price that the dealer paid for the vehicle
8.) Trade-Ins -- Research trade-in value of your car
9.) Walk Away -- Don't be afraid to walk away from the dealer if they aren't negotiating with you