When it comes to purchasing a new car, being sure you buy the right one takes time and planning. Not only do you want to make sure you have the best NJ Car Insurance available, taking the right steps can help save time and prevent stress when car shopping.
It is a very good idea to set up your loan in advance. Determining which lender to borrow from can save you by allowing you to find the lowest interest rate. Getting pre-approved for the loan may also help you determine what car you can purchase. You may be able to get a larger loan than you thought and therefore be able to look at a larger variety of vehicles. Pay attention to the APR (annual percentage rate) and go for the shortest loan length possible while still keeping affordable monthly payments.
If you plan on doing a trade, determine the trade-in cost of the vehicle you plan on exchanging for your new car. A common dealer tactic is to offer you a discount for the new vehicle, but then giving you less than your trade-in vehicle’s value. Avoid this by knowing the ‘book value’ of your car. Another way to determine your trade-in’s value is to have it appraised by multiple dealerships or used-car lots to ask what you would be able to get if you were to sell the vehicle.
Perhaps the most effective way to be sure that you get the best deal on a new vehicle is by having the dealers compete with each other. Do this by calling local dealers and letting them know the exact specifications you want for your new vehicle including model, trim level, and all options and asking them what they would offer for their lowest out-the-door price. Do not talk about trade-in or financing options at this point. Focus solely on the cost of the new vehicle.
What Not to do
- Do not negotiate monthly payments. Be sure to lock in a set final car price before bringing in financing or trade-in options. This prevents the dealer from being able to manipulate numbers to their advantage.
- Do not add on extras that you do not need. This includes paint sealant, and corrosion protection. These things can usually be done at a later time for much cheaper.
- Do not leave until all paperwork including financing paperwork is finalized. This prevents being called back under terms of financing ‘falling through’ and being made to sign less favorable terms.
- DO be prepared to walk. Sometimes a salesperson will try to raise a previously agreed upon price or make you uncomfortable. The willingness to leave may be your biggest negotiating tool.
At Connell Insurance Agency, we know how stressful it can be to buy a new car. Call us today at 888.590.0715 to learn more about our NJ Car Insurance policies.