5 New Year’s resolutions if you want to buy a car

Don’t let yourself get talked into buying a car before you’ve gathered enough information to make a smart decision. REUTERS

By Ellen O’Leary

December 29, 2014

2 minutes to read

1. Do Your Research

This goes beyond researching which model best serves your needs. Statistical data from Kelley Blue Book, Consumer Reports, and TrueCar can help you to optimize your buying experience.

For example, different cars have varying optimal windows, but the end of the month may be ideal for some models, as many dealerships will accept lower offers in order to fill a quota or meet a benchmark for a manufacturer bonus.

Additionally, reviews of dealerships themselves can provide you with insight into how smoothly the process has gone for other consumers. A quick search of Yelp can help you to avoid unnecessary stress by steering clear of nightmarish dealerships.

2. Have an Open Mind

Unless you have your heart set on a certain make, model, and color, remaining somewhat flexible can help you to get the best deal. If you’ve got particular features in mind, be sure to call ahead to check a dealership’s inventory.

3. Create a Realistic Budget

This goes back to doing research. Be sure to get the full picture of what your costs will look like. Sales tax, registry fees, and more can sneak in, and before you know it, you’re paying much more than you bargained for.

A key part of this is to determine your loan situation. Knowing your credit history will give you an idea of how much assistance you can count on from lenders. Through the Fair and Accurate Credit Transaction Act of 2003 (FACTA), you can get a free copy of your credit report once a year, and several online services can provide you your credit score. For this information, your best bet is to go through credit bureaus like Equifax, Experian, or Transunion.

4. Don’t Be Intimidated

Have a firm idea of what features you’re not willing to budge on, and what you could negotiate. Prepare yourself for negotiations by shopping around at various dealerships. Additionally, figuring out a vehicle’s invoice versus MSRP (the markup by the dealership) will not only enable you to bargain effectively, but also demonstrate to the salesperson that you mean business.

5. Be Patient

Don’t buy a car the first time you go to a dealership. Be adamant that you will not be walking off the lot with a new set of keys. Take your time calling different dealerships and finding the best offer, and then pit the offers against each other to drive even lower.

And, once you’ve purchased a car, don’t forego a tour from the salesperson. You may be eager to drive away but it’s a lot easier to learn how to work certain features in-person instead of from a manual.