I know that many of you feel that buying a new car is a waste of money, but this is primarily how to get a new car. You can also use a lot of the advice I give here to purchase a used car. Not everything is always set in stone.
Stress and Anxiety of Car Shopping
Buying a car whether it’s old or new is very stressful. Stories are told and we feel like we’re being ripped off at every corner. When you step foot into a dealership someone is there trying to show off the new car and all it’s wonderful features, then telling you that it’s the last one in the showroom, if you do not get this car, you won’t get another chance again. Or you might see a price in the local paper, and when you walk into the dealership it’s all of a sudden “sold out”. Well all of this leads to large amounts of stress and anxiety.
Planning and Budget
We might be planning a car purchase for months. During the entire time, you are doing tons of research trying to see what kind of car you should buy. If you didn’t do any research and aren’t sure of what car to buy, then you need to decide what criteria you want. Start with a budget, then are you looking for reliability, speed, looks. What kind of features? Leather or cloth seats? All of that is important, and will help you make a wiser decision. Once you make that decision use the advice in this guide to help make sure you do not get ripped off.
I’ve seen people walk into dealerships only to be ripped off time and time again. Many dealerships will not even give you a price over the internet or on the phone. For this information, it is best to do your own research and look up prices on websites like Edmunds and Kelley Blue Book. There you can find the MSRP (manufacturer’s suggested retail price) and the dealer’s cost for any vehicle. Armed with this information, you can go to the dealership and focus on the dealer’s invoice cost, and not the MSRP. A good deal for the average car is 2% above the dealer’s invoice price. Anything above that, be prepared to walk away and keep shopping for deals at other dealerships. If you can’t limit the price to 2% above the dealer’s invoice cost, then the vehicle you are pricing may be hot and in short supply, and you may need to consider other less in-demand cars.
Closing the Deal
When closing the deal after securing the 2% above invoice price, you may want to hear about any offers the dealer has with regards to financing, especially if you are a repeat buyer for a new car from the same dealer. Generally, you want to say no to any add-ons that cost you more money, as these do not have good return on investment, such as extended warranties. Cars nowadays are much improved in quality and durability, so extended warranties are not worth it.
Bring a Friend or Partner
When shopping for a car at a dealership, bring a friend or your spouse to help reduce your anxiety and stress. Salespeople will be less aggressive when you bring reinforcements to help support your position and your desires. And just having another person with you serves as a buffer to a highly stressful situation.
Being prepared and doing your research will help to reduce your stress about buying a new car. Try to hold at 2% above dealer invoice price, and be prepared to walk away if you don’t get that deal. Bringing a friend or significant other also serves to buffer this highly stressful situation.