Techniques for Shopping for a New—or Used—Car

Many people dread shopping for a new car. That’s too bad, since those fears can get in the way of making the best car-buying decision. Here are some steps to follow that can help calm your nerves when car shopping.

1. Do your research first by reading road test reviews and checking safety ratings (use gov and IIHS.org) and fuel economy (FuelEconomy.gov). Set a budget and come up with at least four or five models that meet your needs. Forget brand preferences and remember, knowledge is power.
2. Planning to finance? Pre-arrange a loan.
3. Reach out to dealers in your area and beyond, using e-mail or internet chat options. Ask about the availability of the models you have settled on and request actual itemized pricing covering options, all fees and taxes. Do not discuss monthly payments. Concentrate on the total price and your budget. You should be able to complete all negotiations over the internet.
4. Research insurance costs.
5. Websites can give you an idea of the value of your current car, but don’t commit to trading it in. Ask the dealer to give you a firm no-trade price, in case a relative or friend wants to buy your car. An actual appraisal of its value as a possible trade-in can be handled when you do the test drives.
   
   
6. Set appointments with dealers to test drive the models that still seem to meet your needs. It is surprising how cars can feel so different from each other. Check comfort, visibility, accessibility and control operation. Drive on streets you normally use.
7. As you narrow your list, check maintenance requirements and costs in the dealer’s service department.
8. Expect leasing to be broached. Generally, most people are better off buying, but leasing can make sense in some circumstances. Check with your financial advisor.
9. If you are buying a used car, have the vehicle checked by a mechanic who has no interest in the outcome of the sale before you sign anything. It will cost you some money, but it may prevent major headaches down the road.
10. If at any time you are made to feel uncomfortable doing any of this, simply leave the dealer and shop elsewhere.

Finally, the market influences pricing. Cars in high demand and short supply can sell for more than the manufacturer’s suggested retail price. Models with sluggish sales, however, often come with substantial discounts. The only way to find out is to shop around.