In the equation of “the right car for the right price”, there´s a reason that I put “the right car” first. It doesn´t matter how good a deal you get on a car that´s in a color you hate, or the truck that doesn´t fit your bike in the bed. If you´re not happy with it, it´s not a good deal.
Before you start looking, make a list of all the things you want in a new car — and then prioritize your list. This is where you start making use of that most important tool I mentioned earlier — questions. Use the checklist below to jot down your priorities so that you won´t forget any while you´re shopping.
How will I use this car?
Is it for work? For pleasure? Do you need to allow for a large cargo area, or extra family seating? Need:
Who will be driving this car?
If you won´t be the only one driving the car, whose needs must you consider? Options like adjustable steering wheels and foot pedals can make a world of difference in driving comfort. Need:
How will be riding this car?
Besides the number of passengers the car can seat, there are other considerations. If a regular rider is elderly or disabled, for instance, a 4-door car will make it much easier for them to get in and out of the back seat. Need:
What are my must-have features?
Do you need a killer audio system? On board navigation? The OnStar system? Decide which features are absolute must-haves for you. Need:
What brands do I feel will best represent my interests?
It may sound like a vain question, but brand is very important. It is important that you feel comfortable about the company and its brand. Whether you want to like it or not, brands define you to others. Brands:
What do I absolutely NOT want in a car?
At least as important as what you want in a car, what you DON´T want can rule out specific cars as well. Can´t Have:
How much can I afford to pay for a car?
It´s easy to figure out how much you can manage for a monthly car payment, but how does that translate to a price range for a new car? Try one of these tools to help you come up with the total price you can afford to finance for your new car. Target Price:
Doing the Research
Understanding Incentives
One last thing that you should check while you´re shopping around online — both on manufacturers´ web sites and on independent web sites focused on giving consumers information — is information about dealer incentives and rebates. Incentives and rebates fall into three different categories. Two are available directly to consumers. The third is available to dealers — and knowing it exists can give you an added edge in bargaining.
Incentives and rebates are offered by car manufacturers to encourage the sale of makes and models that are “slow movers”. By offering a special financing price or a cash rebate, they hope that the consumer — that´s you — will be more interested in that particular car.
Rebates are direct cash back when you purchase a car under certain conditions. Read the fine print — in most cases, you will still be financing the full price, so you´ll be paying interest on that $1000 rebate.
Incentives generally take the form of a low finance rate if you finance your car through the dealer. The caveat — the low finance rate usually only applies to the shortest term of financing.
Dealer incentives are incentives that are offered to dealers by the manufacturers. They usually take the form of a rebate to the dealer for certain makes and models. While dealers aren´t required to disclose or pass those on, knowing that a dealer is making $1000 more when he sells a particular car definitely gives you an edge in bargaining with the dealer.
You can find out about dealer incentives, consumer incentives and rebates on any one of many web sites where you can research cars and car prices — and it´s in your best advantage to do so.