A New Car Buying Guide

By: Colin Ayres

If you're thinking about a purchase or just looking for a little
advice, this guide can help. The following information will help
you begin to research, compare, build, and price new cars
quickly and conveniently. In the end, you'll get better prices
on any of the models you are interested in. That means, for
example, obtaining multiple quotes, from multiple dealers,
before you ever step foot in a dealership. (Of course, you can
do it all via the Web.) Having at least three different quotes
during negotiations gives you a distinct advantage. Think of
these quotes as a reference point - the difference between a
good offer and a bad one.

In less than a decade, buying new cars has become a much easier
process via the Internet. There are two types of sites. The
first will sell you new cars directly. The second doesn't sell
directly, but will provide referrals to hundreds of the most
credible dealers. Both sites, however, are going to save you
money. They'll display invoice, MSRP, options, incentives and
rebates clearly. The most credible online resources will have no
hidden fees and virtually eliminate the inevitable haggle with
salesmen.

But there's more. The following is a step-by-step breakdown of
the entire buying process from beginning to end.

New Car Buying Guide Step One - Research prices online Search
for new cars to determine what average prices are, so you know
the difference between good and bad offers. Be sure to do
thorough research, so that you're paying a price near the
invoice and never over the average MSRP. Many sites offer
invoice pricing as well.

New Car Buying Guide Step Two - Request price quotes After
figuring out fair prices, request free quotes for your favorite
new cars from as many credible dealers as possible - you can do
this online. Afterwards, the most qualified companies will have
their dealer internet sales managers contact you, requesting
more details on the new cars you may be interested in
purchasing. Request prices with all applicable taxes and charges
included (not simply the MSRP).

New Car Buying Guide Step Three - Get your credit report Your
credit score is what is used to determine the APR you'll pay on
your loan. You should get a copy to ensure there are no errors,
and that you are receiving the rate you deserve.

New Car Buying Guide Step Four - Get rate quotes With your FICO
score in hand, you should apply to online lenders for the best
auto loan rates. Your bank, other banks, other lenders, the
dealership, and even your family. Shopping around for financing
can save you thousands over the life of your loan.

New Car Buying Guide Step Five - Research insurance companies
You should research insurance companies thoroughly as well. Some
specialize in offering plans to people with not-so-good driving
records and others (sometimes the same company) offer less
expensive plans for drivers with better-than-good driving
records.

New Car Buying Guide Step Six - Get insurance rate quotes
Insurance can be expensive, especially if you've been unlucky in
the past with accidents or citations, but it is necessary
precaution. Request quotes from the preferred companies you
found, and much like the search for the lowest car price and
loan rate quotes, pick the plan that offers the best protection
for the most reasonable price.

New Car Buying Guide Step Seven - Figure out your trade-in value
Use Kelly Blue Book to estimate the trade-in or private resale
value of your car. This will assist you when you are negotiating
the new car price, as the trade in value of your current car
will affect the new car price.

New Car Buying Guide Step Eight - Negotiating your new car
purchase Ready to negotiate? With the lowest quote on the make
and model you chose from your list of new cars, contact your
preferred dealers and see if they'll beat it - they tend to
compete with each other because they want your business.
Utilizing the Internet can provide you with hassle-free process
of creating a dialogue with dealers. For example, it is a lot
easier to stop emailing than it is to walk out of a dealership.

This guide will help speed the entire purchasing process up. And
probably, more importantly, save you money.

About the author:
Colin Ayres is a writer for Harbor Credit. He began his career
shortly after graduating from Yale University, where he soon
realized that Liberal Arts and copywriting have a lot in common.
To read more, visit www.HarborCredit.com.