How to Find the Right Car and Get the Best Deal

5 Min. Read

Buying a car can be a daunting task, especially if you are a first-time buyer. With so many options available in the market, it can take time to figure out where to start. However, with the proper knowledge and preparation, you can make the car-buying process easy and stress-free. In this comprehensive guide, we’ll take you through the essential steps involved in buying a car.

Is Now the Right Time?

Before you start your car-buying journey, it’s essential to consider if now is the right time to buy. Are you financially ready to take on the responsibility of car ownership? Can you afford the monthly payments, insurance, maintenance, and other associated costs? If you’re unsure, it’s best to hold off until you’re in a better financial position.

To get a better understanding of whether you’re financially ready, check out Marine Credit Union’s budget calculator and car payment calculator and check out our blog, Can I Afford to Buy a Car?

If you’ve determined now is the right time, these steps will put you on the path to car ownership:

Understand Your Financing Options

Before you start car shopping, get a handle on your financing options. There are two ways people generally finance a vehicle purchase: direct lending and dealer financing.

Direct lenders include banks, credit unions, and other financial institutions. When you borrow from one of these lenders, you have a chance to shop for the best loan terms and get pre-approved for a loan.

Dealer financing is handled by the dealership where you purchase your car. This is a convenient option when you want to shop for a car and an auto loan in one place. Dealers may have relationships with one or multiple lenders, so you may or may not have the opportunity to compare terms.

Our comprehensive guide to financing can help you better understand what an auto loan is and how it works: Auto Loans 101: What You Need to Know Before Borrowing

Get Pre-Approved

When you’ve identified a lender, consider getting pre-approved for a loan. Pre-approval will give you a clearer picture of your loan terms and can help you stay within your budget and avoid overspending.

Learn more about what to expect when you apply for a loan.

Understand the Conditions of Your Loan

Before signing the loan agreement, ensure you understand the loan terms and conditions. Review the interest rate, payment schedule, and any fees associated with the loan. Ask questions if anything is unclear.

Never sign a loan without full disclosure of the conditions and make sure that you read everything that applies to the loan. The easiest way to get set back on loan payments is to not understand how the loan operates to begin with.

Know the Value of Your Trade-In

If you plan to trade in your old car, knowing its value is essential. This will help determine the amount of your loan you end up financing. Do your research and find out the trade-in value of your vehicle. This information will help you negotiate a fair price for your trade-in.

You can always call a dealer and ask about trade-in values, or you can do your research online. It is easy enough to search what cars your year and make are running for at current market prices, but using a trusted source like Kelly Blue Book may help get more reliable figures.

Research Vehicles and Features

Once you have your financing in place, it’s time to research the type of car you want. Consider your needs, budget, and lifestyle. Do you need a car for commuting or family use? Do you prefer a new or used car? Research the features and options available and choose a car that meets your requirements.

If you live in an area that has seasonal changes, like harsh winters or hot summers, it is crucial to consider cars that have features to accommodate to these things. Or if you are buying your dream car, consider what features are most valuable to you: cargo space, 4-wheel drive, seat warmers, gas mileage, etc.

Locate and Test-Drive the Car

Once you’ve decided on the car you want, it’s time to find it. Visit dealerships, search online, or ask for recommendations from friends and family. Once you find a potential car, test drive it to see if it’s the right fit for you. Check for comfort, safety features, and overall performance.

Check Sale Prices and Warranties

Before closing the deal, make sure you’ve checked the sale price and warranties offered. Research the fair market value of the car and negotiate a fair price. Also, review the warranties offered and make sure you understand what’s covered and for how long.

Negotiation Tips

Negotiation is a crucial part of the car buying process. Here are some negotiation tips to help you in the field:

• Do Your Research: Before you start negotiating, research the car’s market value, features, and any current promotions or incentives.
• Know Your Budget: Determine your budget for the car and stick to it. Don’t let the salesperson talk you into buying more than you can afford.
• Shop Around: Don’t settle for the first dealership or car you come across. Shop around to find the best deals and prices.
• Negotiate the Price: Negotiate the price of the car, not the monthly payment. Monthly payments can be manipulated by the salesperson to hide the true cost of the car.
• Be Prepared to Walk Away: If you’re not happy with the deal, be prepared to walk away. Don’t let the salesperson pressure you into buying something you don’t want.
• Be Polite and Respectful: Be polite and respectful throughout the negotiation process. You’re more likely to get a better deal if you’re friendly and easy to work with.
• Don’t Rush the Process: Take your time during the negotiation process. Don’t feel pressured to make a decision right away.
• Get Everything in Writing: Make sure you get all the details of the deal in writing, including the price of the car, financing terms, and any add-ons. This will help you avoid any surprises later on.

Close the Deal and Drive Away Happy

After you’ve negotiated a price that works for you, you’re ready to seal the deal on your loan. Before signing the contract, review the deal and dealer financing. Make sure everything is in writing, including the price, financing, and any warranties.

Once everything is in order, you’ll follow your lender’s instructions to finalize the funding of your loan, which may involve someone from the dealership contacting the lender to initiate funding.

Buying a car can be a complex process, but with the right knowledge and preparation, it can be made simple. Follow the steps outlined in this guide, and you’ll be well on your way to owning your dream car. And once you’re behind the wheel, make sure you’re completely road-ready with our New Car Checklist!