How To Buy A Car – An Overview

Thank you for visiting How To Buy A Car website. Whether you are planning to buy a new car or buy a used car, the process is very complex, and for many it’s unpleasant, and for good reason. Developed by automotive experts, this free to use website will educate you in all areas of new car buying and used car buying, thus enabling you to get the best car deals. Please select the appropriate option below depending on the type of car you intend to buy:

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How To Buy A New Car

How to buy a new car article, in how to buy a car website, will take you through the steps involved during buying a new car. Even if you are first time car buyer, the information provided in this article will enable you to get the best new car deals. Additionally, this article will show online tools that provide information on average price paid by other car buyers, offer guidance on financing a new car, offer guidance on new car leases, offer negotiation tips for buying a new car and much more.

To summarize, this new car buying guide will make you more confident during your new car purchase and will give you a feeling of empowerment, thus putting you in charge of the new car deal-making process. Before starting on with this car buying guide, you should have decided the car make and model you intend to buy. The process of buying a new car can be completed in the following steps:

  • Get price quotes for new cars
  • Get quotes for car loans
  • Getting prepared for dealer visit
  • Negotiating your new car deal
  • Closing the new car deal

How To Buy A New Car – Road Map For New Car Purchase

 

Step 1: Get price quotes for new cars

 

Before we show you the method of getting new car price quotes, do remember that new car price quote is only a part of the final price paid by you. So ensure to read the entire article for the best new car deals. New car prices can be either got offline or online. Offline means visiting the car dealerships and finding out the prices offered by them for the make and model of your interest. As this is a tedious and time consuming process, we recommend you to get new car price quotes online. You can get free and no obligation new car quotes from car websites such as Edmunds.comTrueCar.com and Automotive.com . It is important to get new car quotes from more than one car website as each car website is associated with a different dealer network. To know more about these websites to buy cars, check the box below:

Overview of Car Websites That Offer New Car Price Quotes:

  • TrueCar : This website removes the hassle during new car purchase by offering upfront prices and guaranteed savings off MSRP from over 5000 TrueCar certified dealers located nationwide. TrueCar users have saved $2,665 on an average off MSRP. Furthermore the website also provides information on the average price paid by other car buyers in your area for the same make and model thus enabling you to negotiate the best car deals. This website is also a renowned source for used cars for sale listings.
  • Automotive : Ranked as one of the top five car websites in the US, Automotive.com offers general tips for used car buyers and new car buyers, new car reviews, links to car shows and other automotive news. With its huge dealer associations the website is used by many car buyers for  new car price quotes and new car loan quotes.

Once you submit your new car price quote request in these car websites, you will get new car quotes emailed to you. Sometimes, the car dealer will also call you and provide their quote. Once you get the new car quotes, you can even begin negotiating the price via phone or email without the need of leaving your home.

Step 2: Get quotes for car loans

 

This step can be avoided if you are planning to pay for your new car via cash. If you are planning to go in for a lease and need guidance on same, or if you are not sure whether to buy or lease a new car, check this “How To Lease A Car” YouTube video. As per Consumer Federation of America, new car buyers pay 3% more when they take car loans from dealerships. Although this sounds less, it can add over $1,000 during the entire loan tenure. To avoid this, it becomes necessary to get car loan quotes online. Additional advantages of getting car loan quotes online include absence of application fees, lower interest rates, quick loan approvals and much more. Getting car loan quotes online, will also empower you to negotiate your new car deal better, as dealers will see you as a cash customer. Whether you have a good or bad credit, you can get new car loan quotes from websites such as 1800FreshStartmyAutoloan.comAutomotive.com and Web2Carz.com.  Similar to new car prices, you need to get car loan quotes from multiple websites so that you can compare and choose the best offer. If you have got a car loan but would like a lower interest rates please visit RateGenius.com and myAutoloan.com for refinance. For more information on websites offering new car loans, used car loans and refinance, check the box below:

Overview of Car Websites That Offer New Car Loans, Used Car Loans and Refinance:

  • 1800FreshStart : Established in 1998, 1800FreshStart supports car buyers in finding automotive financing. With over 1 million satisfied customers, this website through its extensive partner network serves car buyers with all credit types.
  • myAutoloan.com : Operating since 2003, this website offers new car loans, used car loans and also refinances existing loans. Customers completing an online loan application at myAutoloan.com are offered 4 loan offers to choose from. Based on their choice the car buyer receives a check or an online certificate within 24 hours.
  • Web2Carz.com :  This is an online magazine offering articles on technology, people, trends, lifestyle and autos. The car loan service of  Web2Carz.com primarily targets car buyers with bad credit. If you have a weekly income of atleast $375 and have been with the current residence and current employer for one year, you can be sure of getting a car loan approved at reasonable interest rates.
  • RateGenius.com : Based in Austin, Texas, this website specializes in refinancing of an existing auto loan, and serves customers located throughout US. RateGenius.com  lowers your interest rate to as low as 2.99%. Furthermore, the customer opting for refinance also gets a 60 day break from payments after refinancing.

Step 3: Getting prepared for dealer visit

 

By this step, you should have got new car price quotes from multiple dealers and should have shortlisted theauto dealer with the best offer. The next step in new car buying is visiting the car dealerships office and finalizing your new car deal. Before visiting the new car dealer, ensure you have the following information with you:

  • New car price quotes from multiple dealers including the dealer you planned to visit
  • Car loan quotes from finance providers (applicable if you are buying new car via finance)
  • Used car market value from KBB or AutoTrader (applicable if you are going for a trade-in)

Although insurance and extended warranty are also offered by new car dealers, it is advisable to get these online as they are profit areas for dealers and are normally overpriced  compared to market rates. However, if the dealer’s offer on auto insurance and extended warranty matches with the best offer received online, you can get the same from the dealer.

Tip: If you have a bad credit score and would like to improve your credit score for lower interest rates, please visit the following credit repair firms such as CreditRepair.com, GoLookOnline.com, TheCreditPros.com and LexingtonLaw.com.

Step 4: Negotiating your new car deal

 

Now that you have all the information required, you are ready to step into the dealer’s office and begin negotiating your new car deal. You have to remember one thing. The new car price quote sent by the dealer is not the final price. It is a negotiable price. But how much can you negotiate? If you know the dealer price on new cars, you can add 3 to 5% profit to this amount and negotiate your new car price up to that extent. Unfortunately, dealer’s cost for a new car cannot be easily calculated. It is dependent on factors such as supply and demand, dealer holdback, new car MSRP and much more.  As these variables vary for each new car dealer and car manufacturer, even automotive experts find it impossible to calculate the exact price paid by the dealer for the new car. An easier method of negotiating new car price is comparing the quote offered by the dealer with the average price paid by other buyers for the same make and model. You can get this information from Edmunds.com and TrueCar.com, which offer this information for all makes and models. If the price quoted by the dealer is at or below the average price paid by other car buyers, then you are already in the right range for new car purchase. For additional negotiation tips check this YouTube video on “Car Negotiating Tips“.

Step 5: Closing the new car deal

 

After you have finalized the price with the car salesman, you will move to the office of Finance Manager to close the new car deal. The Finance Manager will try to sell extras such as rust proofing, fabric protector, paint sealant, extended warranty and much more.  We recommend you to say a big NO to all of these. These are high profit regions for the new car dealers and can be purchased at a much lower cost outside. The Finance Manager will then prepare the papers for your new car and share the same with you for your signature.  Once you have the papers, check the numbers carefully to ensure that the dealer did not sneak anything new. Do not sign unless you are sure. Just because the papers are prepared in a computer, it does not mean it’s perfect. In addition to the numbers, also check whether:

  • The Vehicle Identification Number (VIN) of the car you purchased is entered correctly
  • The amount included for options are installed in your vehicle
  • Sales tax calculation is in line with the policies of your state
  • The vehicle extension (i.e. LS, LX, EX etc.) is what you had asked
  • There are any scratches or dents on the body or wheel of new car
  • The car dealership has given the car with full tank of gasoline

If you spot a gap, get a due bill from the dealer for the item that has been missed from the dealer. Once you are sure that everything is fine, sign the new car contract and enjoy your new car.

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How To Buy A Used Car

 
How to buy a used car link to Edmunds website

 

This article on How To Buy A Car website aims to answer your question on How To Buy A Used Car. The process of buying a used car can be completed in seven steps:

  • Finding a used car
  • Checking the history of used cars
  • Get your car checked by a mechanic
  • Finding finance for the used car (optional step)
  • Negotiating the used car price
  • Finalizing your deal
  • Getting an extended warranty to protect yourself from heavy repair bills

This article will cover each step in detail, thus protecting you from buying a lemon.

How To Buy A Used Car – Road Map For Used Car Purchase

 

Step 1: Finding a used car

 

Unlike a new car purchase, buying used cars is different. Each used car is entirely unique with a different history, mileage and price. The first step in used car purchase is used car search. Fortunately, with the arrival of Internet this has become a lot simpler than what it used to be. You can find used cars online at:

Of all these sources, we recommend you to check large used cars websites such as TrueCar.com and Edmunds.com. Not only these websites have huge listing of used cars, they also offer free vehicle history report for select listings.

Step 2: Checking the history of used cars

 

You can get to know the history of used cars with the aid of vehicle history reports. These reports offer details on previous owners, accident data, odometer rollbacks and much more. Hence they are very important when buying a used car. If you are searching for used cars in TrueCar.com and Edmunds.com, you will be offered a free vehicle history report for select listings. However, if a vehicle history report is not available for the used car of your choice, you can get vehicle history report from VinAudit.comVinCarHistory.comVinAlert.com and VinUnited.com. For more information on vehicle history report visit this YouTube video.

How to buy a used car

A word of caution! Please do not rely on the vehicle history reports offered by the used car owner or used car dealerships. There is a good chance that these might be modified such that they favor the seller. Also ensure that Vehicle Identification Number (VIN) is same in the various locations of the car i.e. insurance policy, title document, vehicle registration, driver’s side dashboard and driver’s side door.

Step 3: Getting your car checked by a mechanic

 

The next step during the purchase of used car is to get the car checked by a professional mechanic. You can find a mechanic in online directories such as YellowPages. You can also order vehicle inspection online at CarChex. Getting your used car inspected is important despite getting vehicle history report because vehicle history reports are not fool proof. Moreover some local governments do not supply accident report to the providers of these vehicle history reports, and accidents with a damage of less than $1000 are not reported in used car vehicle history reports.

Step 4: Finding finance for the used car

 

If you are planning to buy a used car by paying cash, skip this step. You can get used car finance quotes from online providers such as 1800AutoYesmyAutoloan.comAutomotive and Web2Carz. Even if you are buying a used car from a dealer, we recommend you to get car loan quotes online as this is a profit area for the used car dealer and the interest rates offered by the used car dealer are normally higher compared to the rates offered by online loan providers.  A word of caution! Used car financing is usually not available for cars more than five years old.

Step 5: Negotiating the used car price

 

In this step we will show you the process of how to negotiate for a used car. Before you begin negotiating on the price ensure you have the AutoTrader or KBB used car value details, car inspection report from professional mechanic and vehicle history report.  Also ensure you have taken the car for a test drive and have clarified any abnormalities noticed by you. While negotiating the price, forget about the price quoted by the seller. Offer a price to the seller based on the data you have at hand. Do not forget to add extra amount for the options available in the car and subtract for high mileage (an average of 12000 miles in a year is considered normal), bad tires etc.

Step 6:   Finalizing your deal

 

Once you completed the price negotiations, the next step will be finalizing the used car deal. Keep the following in your mind before making payment and driving away with your car:

  • Even if you are a cash buyer, do not pay for the used car using cash. Pay using a check or credit card. This will safeguard you against any unexpected issues that arise after closing the deal
  • Ensure that you have the title.  Never take delivery of your used car without the title, even if the title is with the lender
  • Never buy a used car from the used car dealers with the clause “as is” in the sale deal. Used car dealers are supposed to offer a minimum warranty of 30 days. However, when buying from used car owners it will always be “as is”.

After completing the purchase, check with your state regarding procedures for transferring title and do the needful to get the car registered in your name.

Step 7: Getting an extended warranty

 

Although this is an optional step, it is highly recommended when buying a used car. Extended warranties safeguard you against heavy repair bills. Do not opt for extended warranties offered by the used car dealers. They are usually priced higher when compared to the options available online. We recommend TocoWarranty, CarChex and SmartAutoWarranty. Before you buy warranty for used car, get extended warranty quotes from multiple providers and choose the plan that is comprehensive and affordable. For additional information on extended warranty and companies offering extended warranty quotes, please click here.

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