Buying a car can be both exciting and nerve-wracking. It’s one of the most significant investments many people make, and you want to ensure the process is as smooth as possible.
With increased vehicle inventory and technological advancements, buying a car today can be more straightforward than ever. Here are some tips to help you navigate the car-buying process confidently.
Define Your Budget for Buying a Car
Before you start shopping, it's crucial to determine your budget. Knowing your loan limits is essential to finance part or all your purchase. TwinStar offers easy auto loan pre-approvals online, by phone, or at any branch, with competitive rates. You can also use TwinStar’s loan calculator to estimate your payments. Understanding your budget will help you stay focused and avoid overspending.
Remember to factor in interest rates and ongoing costs like maintenance and fuel. While new car prices have slightly decreased, high interest rates can still impact your overall expenses. Most dealers participate in Credit Union Direct Lending, allowing you to apply for a TwinStar loan directly at the dealership for a streamlined process.
How to Narrow Down Your Car Choices
With increased vehicle inventory in recent years, finding the car you want is easier than ever. However, narrowing down your options before visiting a dealership is still helpful. Use online tools like AutoTrader.com , Edmunds.com , and vehicle value sites like Kelley Blue Book and NADA Guides to research available models and prices. You can even check out the websites of specific dealers in your area — search, for example, “Toyotas sold near me” to see more local prices.
Dave Foss, a sales representative at Titus-Will/Olympia, suggests narrowing your choices to 3-4 models before heading to the dealership to avoid feeling overwhelmed.
Tips for Negotiating the Best Car Deal
Understanding auto pricing can give you an edge in negotiations. Research the invoice amount a dealer paid for new vehicles and check comparable prices online. For used cars, ask to see the purchase or trade-in value of the vehicle.
“There is very little markup on new cars, but there is more room for negotiation on used vehicles depending on factors like how long the vehicle has been on the lot,” says Foss.
How to Verify a Vehicle’s History
When buying a used vehicle, checking its history is crucial. Dealers often provide a CarFax or AutoCheck report detailing the vehicle’s history. However, having the car inspected by a trusted mechanic is wise to ensure it’s in good condition. Most dealers will allow you to take the vehicle for an independent inspection. If not, consider this a red flag.
An automotive shop will typically take the vehicle on a test drive, do a visual inspection, check vital components and scan the vehicle with an engine analyzer that can identify potential problems. “We can often find signs of damage or past repairs, and even more serious indicators — like corrosion from road salts — that may warn you of a problem vehicle,” says Kyle Wood, a manager at Terry’s Automotive in Olympia, Washington. Wood says most inspections take about two hours and cost around $100, which is a small price for potentially costly repairs down the line.
What Are Possible Red Flags?
- Unusually Low Prices: If a deal seems too good to be true, it probably is.
- Pressure Tactics: Be cautious of sellers who rush you into making a decision.
- Incomplete or Missing Paperwork: Ensure all documents, including the title, are complete.
- Discrepancies in Vehicle History: Look for inconsistencies in the vehicle’s history report.
Buying a Car from a Private Seller
Purchasing from a private seller can offer great deals but comes with risks. Always meet in a public place, bring a friend, and request a vehicle history report. It’s also wise to have the car inspected by a trusted mechanic before finalizing the purchase. And do not leave with the car without the title in your hands.
How to Get Insurance Before Buying a Car
Before you can drive your new car, ensure you have insurance coverage. Contact your insurance provider to get a quote and set up coverage. Some dealers require proof of insurance before you complete the purchase. TwinStar can help you find the right coverage that fits your needs and budget. Visit our Insurance Services page or give us a call for more information.
Embrace Technology in the Car-Buying Process
The car-buying experience has evolved with the increased use of technology. Many buyers now handle negotiations online before visiting the dealership. Use online tools to compare prices and features and consider completing as much of the process online as possible to save time and reduce stress.
Happy Motoring!
Buying a car doesn’t have to be stressful. By following these tips and doing your homework, you can drive away with confidence and peace of mind.
Resources
- Shop smart at AutoSmart : Utilize our online tool to find the best deals.
- Get prequalified with a TwinStar Auto Loan: Enjoy competitive rates and seamless transactions.
- More resources from TwinStar’s BALANCE Program: Get expert advice and tips.
- Check out Consumer Reports Auto Buying Guide
: For comprehensive reviews and recommendations.