How to buy a new car

How to buy a new car from a dealership

Follow these steps to help make sure you're happy with your new vehicle and its price:

1. Do your research. Have an idea of what you're looking for before you visit a dealer. Researching car makes and models ahead of time can reduce any feelings of being overwhelmed when you're presented with options at the dealership.
2. Set your maximum budget. Know exactly what you can afford before looking at cars. If you're financing, consider getting pre-approved for a car loan from a bank or lender. A pre-approval helps you know what you can afford, and it can allow you to act faster if you find the perfect car.
3. Know the best time to buy. Shop around seasonal sales and low- or no-interest financing promos; these are common toward the end of the year as well as around Memorial Day and other holidays.
4. Visit multiple dealerships. Each dealership may have different prices and car models. Some may be more willing to negotiate than others, so even if you find a great car at the first dealership, shop around at a few others before you commit. You can also shop online, including trading in your old vehicle with Progressive Car Shopping services.
5. Test drive several cars. Test drive each car you're considering to see how they feel on the road. Keep an open mind — even if you have your heart set on a specific model, test drive other cars to compare. You might find one that drives better than the car you were originally considering. Test driving a car can also give you a better idea of which new features are must-haves for you. Chat with the salespeople if you can't find exactly what you're looking for on the lot. They can often order cars in different colors or with the features you want.
6. Decide what to do with your current car. If you're getting rid of your current car to buy a new one, you have a couple options. You could trade in your car online or at the dealership and put that trade-in amount toward your new car. If you don't mind putting in a bit more work, you may be able to get more money by selling your used car yourself. Learn how to safely sell your car.
7. Prepare to negotiate. Dealerships expect you to negotiate for a price lower than the sticker. Find some recent sources to determine a fair price for the make and model you want to buy. Ask the salesperson to provide an itemized list of all their fees to ensure they're not overcharging you elsewhere to compensate for your negotiated price. Remember, you're the one buying the car, so you're in control. If a dealership is unwilling to negotiate or a pushy salesperson makes you feel uncomfortable, don't be afraid to take your business elsewhere. Find out how to negotiate the best deal at car dealerships.
8. Consider which dealer add-ons you need. Once you decide to purchase, it's standard for dealers to try to upsell you add-on products like extended warranties. Don't feel pressured to buy add-ons on the spot. If you decide later that it's something you want, you can typically still purchase it. You can often purchase certain add-ons like gap insurance and mechanical breakdown coverage through your insurance company instead.

What are the benefits of buying a new car?

Here's why you might decide to buy a new car over a used car:

• The car has never been driven (outside of transport and test drives), so there shouldn't be any underlying usage-based mechanical issues. Find out what to do if you buy a lemon.
• New cars have the most current safety and comfort features.
• A new car is entirely customizable. If you don't like the color options you see on the lot, the dealership can order one in the color you prefer. You can also request the version of the vehicle that has your desired features, like a moonroof or dashboard navigation system.
• Manufacturer car warranties typically last for two to three years or 36,000 miles, whichever the car reaches first. Buying a used car often means the manufacturer's warranty is already expired.

How long does it take to buy a new car?

The amount of time it takes to buy a new car can vary depending on how much you know about cars and what you're looking for. If you prepare before you start shopping, the process will likely go quicker. Remember, buying a car is a marathon, not a sprint. It's best to take your time to make sure you find a vehicle within your budget that makes you happy and suits your needs.

Note that the car buying process will take considerably longer if you want to order a specific car instead of choosing one available on the car lot. If this is the case, add even more time for a domestically made car or a few more months for an import.

What to do after buying a new car

The first thing to do after buying a new car is to register it at your local Department of Motor Vehicles. Update your insurance by either purchasing a new auto policy or adding the car to an existing policy within a few days, if possible. Depending on your auto insurer, you may have a grace period of up to one month to update your policy. You likely need to submit the VIN, license plate number, and make and model of the vehicle to your insurer. After those tasks are completed, your car is legal to operate.

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