How
To Buy A New Car
!
The states require that you first purchase auto
insurance before you receive title to a car. Click here
for more info on how to buy insurance.
!
Some
car dealers require you have a valid in-state driver's license in order
to drive the car off the lot. Click here
for more information about obtaining a driver's license in your state
of residence.
1. Shop
around for makes and models of cars that suit your budget, needs, and
style. Look in the Yellow Pages for auto dealers or research models
at an online site like Autoweb
(http://www.autoweb.com) or Greenlight.com
(http://www.greenlight.com).
2. Once
you find a few makes and models you might like, check their MSRP (manufacturer's
suggested retail price) in the Kelly
Blue Book. This gives you the recommended price for the car,
and gives you a basis for negotiating the price, should you need to:
http://kellybluebook.com/
(You can
also find the Kelly Blue Book in your local library).
3.
Browse the cars at a dealership. Ask questions, but don't feel pressured
to buy anything. At a dealership, the price, features, warranty
and extras like air conditioning or anti-lock brakes should be posted
on the outside window of the vehicle. Some dealerships offer a "single-price"
while others may require that you haggle (negotiate) with the dealer
for a lower price.
The
final price of the vehicle will include:
- the
car price
- any
interest if you are financing or leasing the car
- extras
and add-ons
- taxes
- registration
and title fees
- a lien
recording fee (if the car is being leased)
- any
warranties (read about extended warranties and what to watch out for
at: )
!
The
dealer may try to sell you add-ons and an extended warranty. Also, they
may try to force you to pay more by claiming your credit report was
insufficient to obtain your requested financing. This may or may not
be true. Learn more about customer scams at: http://www.carbuyingtips.com/
4. If
the car is expensive, you may need "financing" (a car
loan). Some places to apply for loans include:
- The
car dealership - you may obtain low interest loans during certain
promotions - check t.v. and newspaper ads in your area
- Your
bank - inquire about customer discounts and special rates if you carry
more than one type of loan
- Your
credit union - these generally offer low interest rate loans
If your
credit report is non-existent in the U.S. or insufficient on which
to base a credit decision, you may need to buy a used
car instead. They are much cheaper, often at least half the price
of a new car, and if you are careful, can be a very good value. Check
the section on buying a used car here.
5.
Before you buy the car you should get the complete price in writing
from the dealer. You can then use that information to negotiate
with that or other dealers.
6. Check
to see that the make and model has no history of being recalled:
Cartalk.com
let's you search online for recalls of different makes and models of
cars. The site, based on the popular national public radio program,
also offers useful tips and reviews on car buying.
7. Read
a useful legal guide to car buying, like Nolo
Press' FAQ on buying new cars, including info on "lemon
laws" designed to prevent you from buying a car with severe mechanical
problems.
Leasing
a Car:
In certain
situations, for example if you are going to be in the U.S. for less
than two years, it may be worth looking into leasing a car. When you
lease a car you rent it for a prescribed period of time. The lending
rates on leases will generally be higher than those for car purchases,
but you will be able to give back the car at the end of the lease period
and not have to pay the full price.
The
National Automobile Dealers Association online guide includes
info on the pros and cons of buying vs. leasing a car.
