Buying a new car: Your ultimate guide

When it comes to buying a new car, many people think that they know what they’re doing. While that might be the case if you’ve been buying and selling cars for years, it’s not likely that that’s the case.

It’s likely that you’ve only bought one or two; you could even be buying your first car. If that’s the case, then you’ll need to know what to look for when purchasing one.

You’ll likely know the more obvious things, such as:

  • Price
  • Make and model
  • Year
  • Color and other cosmetics.

You’ll also want to keep a few other things in mind before you buy. Making sure that you get the right car for you is a priority. Then there are the likes of financing, optional extras, and much more.

If you find that somewhat overwhelming, you’re not the only one. Countless people have felt the same. To minimize that, you should keep a few things in mind.

What should you do when you’re thinking about buying a new car? A few things stand out from the rest.


Looking Into Financing Options

You’ll likely need some form of financing when you’re buying a new car. If you’re like other people, you’ll typically get this from the dealership.

While that’s an option, it may not be the best one. You could look into pre-financing. These are loans for a vehicle that you can typically get from a bank or credit union.

There are multiple benefits to this. Perhaps the most notable is that it’ll usually be much more cost-effective.

Dealerships usually have higher interest rates than banks and credit unions. You’ll end up paying back noticeably more over the term of your loan.

You’ll save yourself more than you’d expect by choosing a pre-financing option. You’ll need to make sure to stick with your budget for this.

It’s also worth shopping around for loans to get the best deal for you.


You’ll likely have a particular make and model in mind when you’re buying a new car. If you do, you’ll need to research it as much as possible.

There are multiple ways you can do this, such as with a classic car magazine, comparison websites, and more. When you’re doing this, you should look for the car’s invoice price rather than its MSRP.

There could be a significant difference between these two figures. It’ll also let you know how much wiggle room you have to haggle.

It’s worth noting that you wouldn’t be able to bargain down to the invoice price completely; the dealership will have certain costs on top of this, after all.


Speaking of price, you’ll need to make sure that you can afford a new car. Your research will let you know how expensive a particular make and model will be.

With financing options, you’ll likely be able to afford quite a few vehicles. You’ll need to know exactly how much you can afford, however.

Monthly repayments will likely be needed for quite some time. If you have a household budget, then you can figure out exactly how much you can afford for this.

If a certain car seems unaffordable, then it could be worth considering a different option.


Unless you need a car straight away, it’s worth shopping around before you buy. That’s especially true if you’re considering specific makes and models.

You’ll find that there’s somewhat of a difference in price between dealerships. You should speak with salespeople at each dealership.

Taking that approach should let you know their rock bottom price. They’ll often tell you this when you’re leaving. You can then compare prices before deciding.

It could also be worth going to dealerships in different areas. These will price their cars based on the neighborhoods they target. That could drive a significant difference between dealerships.


If it’s your first time buying a new car, it can be easy to make a few mistakes. That’s not uncommon, and a few mistakes tend to happen relatively regularly.

That makes them relatively easy to avoid, as long as you know what to look out for. As effective as knowing what to do is, knowing what not to do when you buy a new car is just as vital.

Some of the larger mistakes to avoid include:

  • Not Being Flexible With Model Choice: If you have your heart set on a particular model in a dealership, then the salesperson may pick up on this. That could affect how low they’re willing to go on price. If you’re more flexible with what you’re looking for, the car could end up being more affordable.
  • Not Going For A Thorough Test Drive: Going for a test drive is highly recommended when you’re buying a new car. Many dealerships have planned test drive routes to follow. On top of this, you should do a little more driving in the vehicle, with permission. That’ll let you get a better understanding of the vehicle.
  • Buying Unnecessary Extras: It can be easy to persuade yourself to get some of the optional extras when you’re getting a car. You’re already spending a lot, so what’s wrong with a little bit extra? You should avoid doing this unless the extras are something you honestly want or need.

When you’re buying a new car, you’ll want to be as informed as possible. That’ll let you haggle somewhat and cut down on any unneeded costs.

With that, you shouldn’t have too many issues once you get to the dealership.


When you’re buying a new car, it can be easy to get overwhelmed. You’ll need to consider multiple things, such as the price, mileage, and more.

Then there are financing options and multiple other terms and conditions. These could stress you out. You can avoid much of that by keeping the above in mind.

The more you know, the easier buying a new car will be. You shouldn’t have to be stressed about the process, so why not minimize it?

Photo Credit: Newspress

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