Car Buying Tip #1 - 8 Essential Steps For Buying A Car

#1 Congratulations! You've completed step #1 by finding my blog and hopefully you will use the blog if you need advice or tips straight from me. That was easy!

#2 You must know you're credit score. If you don't know your credit score and what's on your credit file, it'll not only make selecting the appropriate lender for you more difficult, but it could lead to a costly surprise (High finance rates) when it's time to buy. A $20,000 loan for 72 months at a 6.9% APR has a monthly payment of $340, which fits into most peoples budgets. On the flip side, if you thought you'd qualify for the 6.9% rate, but it actually turned out you qualified for a 18.99% APR, you'd be looking at a $467 payment. Surprise!
Get your credit score here Fico Scores/Reports and remember Higher FICO Scores = Lower Monthly Payments.

#3 You must get Pre-Approved. Now that you know you're credit/FICO score, you definitely want to get pre-approved for an auto loan. Getting pre-approved gives you the ability to "Buy Like a Cash Buyer," which greatly increases the leverage you have when negotiating the best possible deal. I recently observed the last 40 deals at my dealership, and found that cash buyers saved over $2500 per car deal, compared to those that financed. If that's not a call to action, I don't know what is!

Check out the Loan Center, to see which lender is the best fit for your credit score and credit tier and apply today, they're fast, easy and FREE!

#4 Start your shopping online. You must not walk into a dealership and have no clue what average prices are for the new or used vehicle your considering. Most people that do walk into a dealership with no clue what the true value of the vehicle is will get caught up in the emotion of the moment and pay way more then they could have. Get a whiff of that new car smell and you're taken away to a distant, far away place...I'd personally suggest that you find your next vehicle online. This saves a ton of time not having to go dealership, to dealership, to dealership, increases your leverage in a big way, and will typically save you money right out the gate, because it's so competitive online.

If you're looking for a research site, I'd highly suggest Edmunds.com. They are one of the largest car buying informational sites out there. You can find dealer invoices for most all new vehicles, and inquire about vehicles online.

My favorite site for buying new cars and searching for used cars is CarsDirect. They offer a car buying service, and guarantee the lowest prices for new vehicles. They will show you MSRP, dealer invoice, and the CarsDirect price. With this service, it allows you to bypass car dealers salesmen and buy a vehicle with none of the sales pressures you'd normally find at a dealership. Try it, I'm sure you'll like it.

#5 You must know what your trade in is worth. Check out sites like Kelley Blue Book (KBB.com), or NADA (NADA.com) to get a good feel for what your trade is worth. Keep in mind both of these sources are simply guides, and are not set in stone values. For instance some vehicles may be "soft" (not worth as much as it's book value), like a truck with a V10 engine. With gas prices where they are at a V10 truck that has a book value of $20,000 may only be worth $12,000 to $14,000. What? That's right. If a dealership were buying a V10 truck with the intention of reselling it, they'd have to be in a position to sell it quickly, or else they risk it collecting dust on their lot for the next year. People aren't exactly jumping through burning hoops to rush out and buy 6 MPG trucks with the current gas prices.

If you need additional help with determining your trades value to a dealer, please get with me and I can help. By the way, you'll need to expect to get less trading your vehicle in to the dealer than selling it on your own. If you'd like to get maximum value for your vehicle try to Sell your car on Cars.com: reach 65% of online used car shoppers. They have great reach and you'll more than likely sell your car fast and often make thousands more.

#6 Get insurance quotes. I can't even begin to tell you how many customers I've seen go through the whole buying process (usually hours), get all excited about their new vehicle, maybe agreed to $50 a month more in monthly payment, because they had to have that one, and then they call to get insurance quotes.


Two words, Big Mistake! Using the same scenario above, the customer is already paying $50 more a month than they had figured and now they call for insurance only to find that their insurance is going to go up another $60 a month. This can be disastrous to your financial future!

Remember there is more to car payment than the actual car payment itself. Get insurance quotes before you ever go to the dealership. It's FREE, and doesn't affect your credit, so let the insurance companies compete for your business.

Check out the Insurance Review for fast, FREE quotes, or check out two of my top preferred companies Esurance, or 21st Century Insurance, both could save you hundreds on insurance.

#7 Talk to me. Now that you've got all your ducks in a row, get with me and let's structure a deal that will save you thousands, and make this the best car buying experience you've ever had.


#8 Be Prepared. You've done your homework, you've talked with me and now it's time to head to the dealership. You must bring printouts of invoices if new, book value if used, your trades values, a copy of your pre-approval and any other supporting documentation.


When a dealer see's you walk in with all this information, they're are going to know that you're not to be messed with, and more than likely you'll cut a lot of time of the negotiating, because they'll know you know what to expect and won't fall for a lot the hype.

If you really want to chap their hides, bring a financial calculator, and use it when they present numbers to you...Car salesmen love when customers do this (sarcasm).

Take care and beware,

J the Car Guy