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New Car Buying
Consumer Information
The purchase of a new car is one of the most important decisions a consumer can make. Remember that there are three parts in purchasing a new car:
Remember that there are three parts in purchasing a new car:
- Selecting the vehicle that meets your needs.
- Getting the best price on the vehicle, and, when applicable;
- The best financing terms.
The following guidelines will provide you with some basic information to help you get the best deal on your new car purchase:
Ask Yourself These Questions
- How much can I afford to spend on a new car including what options I need or want?
Do not be pressured into spending more
- How much will it cost to finance the purchase of the vehicle?
If you intend to finance your purchase, remember that the cost of financing will depend on your credit worthiness, the amount of your down payment, the interest rate, and the length of the loan.
What type of vehicle will best suit my needs?
A sedan, coupe, SUV, station wagon, or sports car?
Do I want to buy or lease?
Be certain the papers you sign indicate this preference.
How much will it cost to operate the vehicle?
Include insurance, fuel, maintenance, and repair cost not covered by the manufacturer's warranty.
Now that you have determined how much you can spend and the type of new vehicle you wish to purchase, you need to do some homework in order to get the best deal on the cost of the vehicle and on the financing.
Tips for Getting the Best Deal
- Use available resources to learn about different models and there the prices including the value of your trade-in in publications at the library or at a bookstore, or on the Internet, i.e., www.kbb.com and/or www.edmunds.com.
- Compare similar type of vehicles from more than one manufacturer and test drive the vehicle on various types of roads and at varying speeds.
- Shop as many dealers to get the best possible price and be prepared to negotiate the price. Never discuss a trade-in until you have negotiated the best possible price of the new vehicle you are buying and only after you have researched the value of your trade-in.
- If trading a vehicle, determine the value independent of the dealer using National Automobile Dealers Associations Official Used Car Guide or from other publications including information available on the Internet. only discuss trade-in value of your vehicle after you have negotiated a final price on the new car.
- Be aware of dealers attempting to charge for add-ons such as extended warranties, service contracts, credit insurance, undercoating or paint sealants. only buy what you really need and can afford!
- Do not allow yourself to be pressured and never leave a deposit unless you have a written receipt indicating that the deposit is refundable Never sign a contract until you have read the terms and conditions and understand them. Do not sign a contract containing blank spaces and make sure that the contract is signed by an authorized representative. Never rely on verbal representations! All representations and promises must be in writing.
Don't be held hostage! Don't give them your Drivers License or Social Security number!
Sometimes you will need it to break off negotiations and leave. Many new car dealers photocopy your license before a test drive. Tell them there is no reason to. They'll say insurance requires it. Car rental agencies don't copy your license and you're taking their car for a week! Some dealers copy your license in case you rob the salesman. Other dealers copy your license to run unauthorized credit checks on you during your test drive, still a top complaint. Make copies of your license and when they ask for your license, hand them the copy, get it back when you leave. Write on the copy the dealer may NOT run a credit check on you. Remind them the FTC fines $2500 for unauthorized credit checks. Many dealers are honest and will photocopy your license on a copier at the front desk and give it right back. But some, while you're out on the test drive, run a credit check on you. Then they give your info to local banks, which run credit checks. Now you have 5-6 credit checks on your record. This will haunt you when you buy furniture and apply for credit. You'll get rejected for 5-6 checks on your credit with no credit issued. Don't give personal info until you have signed the buyer's order and are doing dealer financing.
Links:
Auto Purchases
Car Leasing
Car Prices (Retail and Wholesale)
Car Safety/Recalls
New Car Lemon Law - Florida
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