Ok, so here we are, part two on making sure you get the right price on your next new car.
Sure I still cannot convince you to buy a late-model used one? Fine…be that way…lets see where we are.
In the first part, we made sure our credit report was correct and that you had a good score….at least good enough to get a decent interest rate on your auto loan. If you have not gotten your report or you have a low score, I would seriously try to correct that before you go any further in your car shopping. Your score can change your payment dramatically, so you want to be sure you do all you can to have a high score. We also discussed where to get an car loan, and I mentioned credit unions as probably the best source for that loan. Now that you know your score and have a loan for the car that you want, let’s take this a step further.
Before you even step foot in any dealership, you need to know the base invoice price of the car that you want.
You can find this out from any number of sources, but I prefer Edmunds.com. You can also use KBB.com, but I like Edmunds better. So if you go to their homepage, you will see a section on the left in orange that is for New Cars. Go ahead and click on the Prices, Reviews, Information link and the next page will have a form for you to enter your zip code in. That is because different states and cities have different prices based on emission regulations and assorted other things, so they need to know where you will be buying the car to give you a correct invoice price. Once you have entered your zip code, the next page will let you select a car by body type or by manufacturer. Since I am guessing you already know what car you want, you can find it in the list and click on it.
For the rest of this article, I am going to use the 2007 Honda Civic as an example. Honda’s are good cars, they sell for a decent price, and most people have a Honda dealer near them. So for this article, when I say car from now on, I am probably referring to the Honda I am clicking on here on the Edmunds site. I click on the manufacturer “Honda” and then click on the 2007 Honda Civic on the next page. Now I am at the pages that will have all the info I need to get me in my new ride, including body styles, incentives and rebates, the TMV price (True Market Value, or what other people have been paying for the car in my area) and some research to me to read up on.
Let’s say I want the 2007 Civic 4 door sedan in the EX trim level, automatic transmission and no navigation. So I scroll down and find it, and click right on the listing. Here is where things get meaty and we can figure out what we should be paying for the car when we approach some dealers.
I think I will leave it at that for now, until the next post in a couple of days because we will really start getting into the numbers, how to contact multiple dealers in your area and price them against each other and negotiating the final deal. So for now, play around at Edmunds or KBB, find the car you are looking for and all the options, and be sure to save it so you can refer to it later.
Look for How To Pay Your Price On Your Next New Car Purchase – Part Three in a couple of days!