What should you know before buying a new car?


Quick Answer

Information to have before buying a new car includes the invoice price, eligibility for rebates, dealer history and the best time to purchase the vehicle. Only looking at and test driving the car on the first visit and gathering information without making a purchase may help with bargaining power on the next visit.

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Full Answer

The invoice price refers to the actual price the dealer pays the manufacturer for the car. Having this information communicates to the dealer that you have done your research and offers additional leverage when negotiating prices.

Visit manufacturer websites to see if you are eligible for any rebates. Coupons or membership in certain organizations can make you eligible for rebates and help with additional savings on the purchase. Some dealers do not make buyers aware of rebates for which they may be eligible as a way of making extra profit.

Check reputable local dealer review websites and research the dealer before making contact. This is a good way to learn about the dealer's business practices and be informed about any negative feedback. Asking co-workers, family and friends who may have recently purchased vehicles for recommendations is also a good way to find a reputable dealer.

Lastly, many car dealers are pressed to reach targets at the end of the month and may be willing to accept lower offers during this time. Buying a car at the end of its model year can also result in good deals on remaining inventory. The last week of December is usually a slow time for car dealers and may be a good time to get a deal on a new car.

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