Buying a new car is a big decision, and following a few key rules can help you make a smart choice:
1. Set a Budget – and Stick to It
Know what you can afford before stepping into a dealership. Factor in:
Monthly payments
Insurance costs
Taxes, registration, and fees
Fuel and maintenance expenses
2. Do Your Research
Compare makes, models, features, and prices online. Use tools like:
Kelley Blue Book (KBB)
Edmunds
Consumer Reports
Look into safety ratings, fuel efficiency, and long-term reliability.
3. Shop Around for Financing
Don’t rely only on dealership financing. Check rates from:
Banks
Credit unions
Online lenders
Get pre-approved so you know what interest rate you qualify for.
4. Test Drive Like a Pro
Don’t rush it—test drive multiple models. Pay attention to:
Comfort and visibility
Noise levels
Acceleration and braking
Tech and ease of controls
5. Negotiate the Price, Not the Payment
Focus on the total cost of the car, not just the monthly payment. Dealerships may stretch out loan terms to make payments look smaller.
6. Watch Out for Add-Ons
Dealers may try to upsell you on extras like:
Extended warranties
Paint protection
Gap insurance
Decide ahead of time what you need—and say no to the rest.
7. Understand the Contract
Read the paperwork carefully before signing. Make sure:
All promises are in writing
Fees are explained
The interest rate and term match what you agreed to