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Car buying tips

Learn how to buy a car for a decent price.
Learn how to buy a car for a decent price.
Photo provided by Hendra Willyanto via Flickr

Have you been wondering what it takes to buy a new car? Or, are you simply looking for ways to strike a good deal on a new automobile? Either way, here are five tips to help you purchase a new car for a good price.

Talk to your bank

Hopefully you have established a relationship with a local bank in your town or city. If so, take advantage of the bond you share with them concerning your money.

Ask them about car loan rates for you as their customer. If you see a rate that you like, apply to get the loan.

Doing this will give you a leg up over the dealership(s) where you search for a new car. If you qualify for a loan, you will already know what you qualify for and the loan's interest rate before arriving to the dealership.

Research online

Before going to dealerships, do you homework. Search the internet for cars in your city or surrounding cities that fit your price range. Also, look for dealerships who are holding special sales.

Trade in

If you plan to trade your car in, know how much it is worth. You will also want to know how much money you still owe on it if the car loan is not paid off.

Car payment calculator

Once you know how much your bank will give you, and the trade in value of your car, start calculating. There are many car loan calculators online that will give you a good estimate based on your loan amount and trade in value.

Aim low

When you finally arrive to the dealership, be careful with numbers. Do not go in talking about how much your prequalified loan is. Instead, aim for the lowest price possible and give yourself some room within your loan amount to get the exact car you want.

If you do not have a prequalified loan form your bank, still aim low. The car dealer may still be able to put you in the car you desire at a price you can manage to pay.