Top Ten
Car Buying Tips
Welcome to our ultimate guide for car buyers! Whether you’re a first-time buyer or looking to upgrade, we’ve gathered the top tips to help you make a confident decision when purchasing a vehicle. These expert insights will put you in the driver’s seat of your next purchase. And don’t forget, the LA Auto Show is the perfect place to explore your options—sit in cars, test drive, and compare the latest models all in one exciting, no-sales-pressure environment.
Leave The Emotion at Home
Cars are part of the fabric of our lives in SoCal and for many of us an integral part of cherished memories. Remember this is a business deal and it’s all about money at the end of the day. Similarly sitting in a brand-new vehicle can emotionally take you in the other direction, imagining yourself behind the wheel of the latest model is a powerful feeling, and something salespeople all know. Separate the emotional aspect and stresses to strategically build a plan to start the car buying journey with that mind.
Know Your Credit
Even though a dealer or automaker will have to pull your credit, it’s always a good idea to know where you stand before walking in and trying to negotiate. After you have this information you’ll have a much better sense of what rates you might be able to get as well. If you are close to a milestone on your credit rating like breaking 600, 650 or 700, research small changes you can make to increase your credit rating and wait a month to break through to that next level so you are in the best position to begin the process.
Apply for Financing From Multiple Sources
Talk online with banks, credit unions and online lenders before you start looking at cars. Factor in how much you truly can afford with all costs included and secure the best rate available. Wait as long as you can to let the dealership know that you have secured financing as they will try to get you to apply for financing with them. If they can beat the terms you already know you have, great, if not tell them you’re not interested. Just always keep in mind that other factors shouldn’t change if you do use their financing as they might try to make up the difference somewhere else, that’s why you want to do this at the very very end after all other matters are settled.
Research, Research, Research
Before you settle on your next dream car (or the dealer you want to go to) do as much research as you can on your own. Read online reviews, go to Auto Shows and talk to brand ambassadors, walk dealer lots but tell them you’re not buying today just looking – the more you see and questions you can get answered on your own the more comfortable you will be when you meet with a salesperson for the vehicles you have in mind.
Find The True Value Of Your Trade-in
Check out what similar cars and models are being listed for privately by owners and by used dealers, take it to CarMax for a free evaluation, be honest with yourself about the condition and the miles on it, and settle on a trade-in value that you are comfortable with, and stick to it. Also remember the two transactions are not tied together, buying the new car is one negotiation and selling your trade-in is a separate one. Sometimes it makes sense to do it all at one place, but many times you’ll get more by separating them.
Keep The Critical Decision Making Factors Private
You know how much you might want to spend, but the salesperson does not and you should never tell them that. Focus on the total cost of the vehicle including fees and taxes, rates and incentives and let them work hard to tell you a number that works for you AFTER they have disclosed all the costs. If you tell them a number up front there are far too many variables they can play with, which most likely won’t be in your best interest. If you get asked a question that you don’t want to answer, trust your gut and just say something cute like that’s for me to know and you to never find out. The more information they can get the more they can play with emotional and financial factors. Especially when it comes to extended warranties that may be presented at a “discounted rate” but are still extremely profitable for the dealer and a source of income for the finance manager. The more you hold to your strategy and your number, the higher likelihood the price of that warranty may just come down. Also, take notes on everything they offer verbally and triple-check it in the hard copy of the contract before signing.
Negotiate
Many people don’t like this part but this is where the rubber meets the road. A good way to approach it if you aren’t someone who loves to haggle is just to think of it like a game being played. You are either in the game or you’re not and no one likes sitting on the bench at the end of day. The overall cost of a vehicle posted is just a starting point and remember you hold all the power til you sign that contract. If you don’t ask you don’t know and many things can be negotiated that aren’t necessarily easy to spot. Keep an eye on “fees” like dealer fees, documentation or advertising and request they be removed. Are there add-ons installed to the vehicle you are looking at that you don’t want or like? Ask them to take them off or to break out the costs for those items and reduce them significantly or, for any answer you don’t like that crosses a line on your strategy, tell them you are thinking of walking away or going to another dealership. It’s the ultimate power move and in most cases they know if you leave you aren’t coming back, so that’s when the incentives to close a deal really come out.
Bring A Friend Or Family Member
Even if just for companionship, it’s always good to have someone with you that you have shared your car buying strategy with. They can help keep you honest, pull you away for a second to chat privately, or just be emotional support when you need it if they sense you are not sticking to the plan. If that person loves to negotiate, or knows a ton about cars even better, but it’s not necessary, just the act of having someone else with you strengthens your position in the process as there are two sets of ears hearing everything being said.
Know When The Deals Happen
Certain holidays and times of the month are great times to score a deal or incentive that otherwise wouldn’t be offered. If you can time your purchase around these times it could save you big bucks at the end of the day. Especially if that salesperson is close to meeting their monthly goals and one more sale would really benefit them as well. Check the automaker’s corporate pages, the dealer’s websites and make sure you are getting the best incentive or deals at that time, not just a promoted one!
Choose The Sales Person, Don't Let Them Choose You
If you are more comfortable dealing with a certain gender or height or someone who speaks a certain language, whatever it may be, ask if they have a salesperson right at the beginning who fits what you are looking for because again, remember, you have all the power! At the end of the day they are all salespeople and trying to close a deal, but if it makes you more comfortable that’s just one more thing in your favor.