Consumer Guide
Determine Your Budget
Calculate how much you can realistically afford, including the purchase price, taxes, fees, insurance, fuel, and maintenance. A common rule is to keep car payments under 10-15% of your monthly take-home pay. Decide if you'll pay cash, finance, or lease.
Get Pre Approved for Financing
Shop for a loan from banks, credit unions, or online lenders before visiting dealers. This gives you a strong negotiating position, a clear interest rate, and avoids high-pressure dealer financing.
However in some scenarios special manufacturer financing may work in your favor and may be worth looking into.
Current rates and offers are typically readily available on the brand manufacturers home page and easily discoverable.
Research and Choose the Right Car
Narrow down makes, models, and trims based on your needs (size, fuel efficiency, safety ratings, reliability, and features).
Consider your needs as the consumer.
Read reviews, compare prices, and check incentives or rebates.
Be sure to look over crash and safety ratings.
Test Drive the Vehicle
Test drive multiple options in real-world conditions (highway, city, parking) to assess comfort, handling, visibility, and features. Bring a checklist for noise, acceleration, braking, and tech.
Visit multiple locations and try various models and options.
Review overall vehicle condition including under the hood and the interior.
Inspect tires, fluids and inquire about previous maintenance if pre owned.
Research Fair Pricing and Get Quotes
Use tools like Kelley Blue Book, JD Power or Edmunds for invoice/MSRP values, then contact multiple dealers for out-the-door quotes (including fees and taxes). If trading in, get separate appraisals.
You will find that not all business who sell the same product handle things the same way. Business acumen must be taken into consideration.
Negotiate the Deal
Focus on the total out-the-door price first, then discuss trade-ins, financing, and add-ons separately.
Pay attention to additional fees, add-ons and adjusted market values.
Be prepared to walk away—dealers often improve offers if they sense they may loose the deal altogether.
Review and Sign Paperwork
Carefully read the contract for accuracy on price, terms, warranties, and fees.
Make sure that documents align with what was agreed upon between the sales staff.
Consider add-ons like extended warranties critically.
Warranties are like insurance. Can be very useful or completely useless. Some may help increase resale value by being transferable.
Finalize Purchase and Take Delivery
Now for the exciting part!
Arrange payment, register the vehicle, get insurance in place, and inspect the car one last time before driving off.
For used cars, consider a pre-purchase inspection by a mechanic.
