Often when buying your first car, you often think about how it looks. What model is it? What colors can you get? You may find, though, that there are much more important factors when it comes to car buying that you don’t want to overlook. Here’s a list of things to look for that can save you money and/or help you in the long run when purchasing that first vehicle.
Educate Yourself on Invoice Prices
Image via Flickr by Benoit cars
As the car market turns more into a buyer’s market, having information as a buyer can be priceless. Part of educating yourself includes learning the invoice price of the car that you want. Invoice price means the price that your dealer pays the manufacturer for the car. The invoice price is different from the MSRP, which is the manufacturer’s suggested retail price. This MSRP generally stands hundreds to thousands of dollars above the invoice price.
When you know what the dealer paid for the car, you can talk the price down more easily. You also won’t be fooled into thinking that you’re getting a great deal when you aren’t. Telling dealers that you know this information lets them know you’re serious and not easily manipulated.
Research the Dealer
Again, learning information can help immensely. You can research dealers before visiting them to get a better idea of who you’re looking to do business with. Some dealers have better reputations than others. Visit a website that deals with business reviews. Some websites cater specifically to rating car dealerships.
If you don’t want to deal with a dealer in person, you can use KBB cars for sale or other websites to buy cars through. The Kelley Blue Book (KBB) generally provides a lot of great information to help you educate yourself well on car pricing.
Otherwise, talk to your friends and family. Anybody you know who has gone through the process of purchasing a car can likely give you some of the most valuable information on dealers and cars.
Check the Specs
Most car buyers overlook most specs when buying their car. But these details can make a difference when you’re driving the same car for years. Finding out the miles per gallon can help you save money over the next few years. Think about how long that you plan to own this car and how much that means to you. Find out about the safety ratings on the car. Do you plan to drive your family around often? Do you drive in difficult weather conditions?
Some specs seem less important when you first buy the vehicle, such as cargo room, head room, and turning circle. These fine details, though, can affect how much you love driving your car, and you probably want your first car-buying experience to turn out well.
Get Your Credit Report
Turning the tables around a bit, you might want to do some research on yourself before heading to the dealership if you’re buying a car with financing. Unless you have a lot of spare cash, you'll probably have to get a loan for a new car. Anybody can get a free credit report once a year from the top three credit reporting agencies: TransUnion, Experian, and Equifax. You can also pay to get your credit score to further learn about how good that your credit is.
Look for Rebates
If you want to continue to look for ways to save money on the purchase, check for rebates from the manufacturer’s website. Many people qualify for more than one rebate, and these rebates aren’t always made public. Certain organizations offer unique rebates, so you may be able to benefit from a rebate offered through your employer or an organization to which you belong. Make yourself aware of every kind of rebate that you can get. Dealers may not tell you about rebates because each rebate cuts into their profit.
The key here is to make sure that you know what you’re doing before you step on the dealer lot or check out that sales website. As long as you get educated on the manufacturers, the dealers, and yourself, you should be on the right track to make a smart purchase.
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