How to Buy a New Car at a Fair Price

Man and woman in a convertible car

So you have reached that point in life where you can buy a new car. You have haggled in enough car yards, including some that look strangely like front yards. You have been stuck in the “never had a problem” car that needed a clutch repair after three months. You have bought the last car you’ll ever buy with the lingering smell of wet dog in the back seat. That’s all behind you now though. It’s time to buy a new car and enjoy the benefits and peace of mind that come with it.

The process of buying a new car is very different to buying a used car. At a new car dealership you may encounter new scenarios you haven’t considered previously such as add on sales, warranties, upgrades and financing options. It’s also worth noting that even the purchase of new cars can be open to negotiation. So how do you go about buying in this market? Here are some useful tips for getting your new car at the best price.

It Still Pays to Research

The early process for buying a new car is similar to purchasing a used model. It starts with an assessment of your budget and a search for makes and models that meet your needs. A new car can be a larger investment than a used model, meaning it’s wise to invest proportionally in research time before buying. Talk to friends who have the same model or even post your questions and chat about your thoughts in forums. Once you are comfortable with the car models that will meet your needs, also make sure you know what is included on the base model and what is considered an extra. The more information you have before approaching a dealer, the more chance you have of knowing what is good value for your needs and negotiating a fair price.

Long term costs

Your new car should roll off the factory floor with no issues, ready for years of problem free driving. While your purchase is often covered by warranty be aware of what servicing is required to maintain that warranty. Some brands require more running costs than others and there can also be a big range in the cost of a service for specific models even within the same brand. You may want to think about the price of servicing as part of your budgeting. Another consideration for early research is depreciation. While depreciation is a fact of life, if you are likely to upgrade cars within a couple of years be aware that some cars depreciate faster than others. The bottom line is that you should consider all costs rather than only the initial purchase price when determining the value of a car for you.

What is your old car worth?

If you’re shopping for a new car, chances are you still have old faithful sitting in your garage. Include this car in your research. Even if you don’t want the stress of selling the car privately check these prices anyway. Knowing the price you can get for your car will help you know whether a dealer is offering you a fair trade in value. It may also give you the motivation to sell it privately if the price difference is significant. Either way works out better for you in the end.

Shop around

It’s easy to get attached to a new car after test driving, particularly if you’re upgrading from an older model. Rather than make an impromptu decision though, make a commitment at the start of your car search to visit at least three dealerships. Even if your heart is set on a particular car, shopping around gives you better perspective and allows you to make an informed rather than emotional decision.

Professional help is available

Buying a new car is not something most people do very often. The whole process can be quite daunting when you consider the amount of time that ideally should be spent researching and visiting dealerships. However, as experienced car brokers we do go through the process often and have extensive knowledge of how to negotiate value for the buyer with a new car purchase and trade ins. If you’re tired of the car buying rigmarole or you would just like the peace of mind knowing you are getting a fair deal, Car Search Brokers can help you find the perfect new car to suit your needs.

Posted on April 10, 2015 in Car Buying Tips