Lillian Turner
Purchasing a new vehicle can be a daunting task. With higher prices, higher demand, and higher interest rates, it’s important to go into the experience feeling prepared. After recently purchasing a new car (a 2024 Mazda CX-5!) I thought I’d share a few words of wisdom.
Before You Visit the Dealership
A great place to begin your car buying journey is by deciding how much you are willing to spend on a new car purchase. If you have an existing car, does it have any trade-in value? Do you have a certain amount of cash available for a downpayment? A good rule of thumb when buying a car is the 20-3-8 rule (aim to put 20% down, finance over three years, and don’t spend more than 8% of your income on monthly car payments). This isn’t always feasible, but it’s a nice guideline to stick to.
Once your budget is set, research a few different brands and models that fit within your price range and decide upon a vehicle or two that you are interested in test driving. While it can be tempting to simply show up at the dealership and test drive everything, it allows the car salesman you’re matched with to show you the more expensive models (and ONLY the expensive models).
With your budget determined and a vehicle in mind, it’s time to consider how you’ll pay for the car. If you plan to finance a portion of the cost, make sure that you check your credit score ahead of time. To qualify for the best interest rate offers, you will likely need a credit score of 720 or above. While obtaining financing through your bank or credit union used to be the better deal, it pays off to explore the competitive interest rates that dealerships are now offering. I was able to snag a 0% interest rate by financing through Mazda!
Purchasing Your New Car
Now it’s time to plan your visit! Pick a quieter day to stop at the dealership, if possible. Saturdays are usually the busiest day of the week and often lead to longer wait times and less attentive staff. Regardless of the day you visit, there will likely be time spent waiting around. Don’t forget to bring a good book and a snack (no one likes shopping while hungry)!
When you arrive at the dealership, you will be matched with a salesperson. Especially if it’s your first time buying a car, consider asking for a female sales rep. My experience was enhanced considerably on my second visit when I was matched with a woman (who was much more focused on helping me find the right car than on increasing her commission – and it also made the negotiation process significantly more comfortable for me).
Once you’ve determined which car you want to purchase, be sure to negotiate your little heart out. Be willing to walk away (or ask to see a lower tier model) if the dealership won’t match your price range. There are certain aspects of the vehicle purchase which are typically negotiable (add ons, base price) and others which are not (taxes, doc fees, registration). The dealership will also attempt to sell you a variety of insurance products and an extended warranty. Go with your gut and ask multiple questions before agreeing to sign up for anything additional.
I hope this information proves useful in your journey. Happy car buying!