Buying your first car is one of the first big ticket items you may ever make. And if you want to make sure you make the best decision, keep reading our list of do’s and don’ts before you make that purchase.
Do create a budget and stick to it
The easiest way to get in over your head, is to head to the dealership with no idea of how much you want to spend. Sounds like a bad idea from the start! Decide within yourself what a reasonable budget is for you and stick to it. There’s just no need test driving a Ferrari when you know very well you can’t afford one.
Do research and test drive before you decide what to buy
Do some thorough research and investigation beforehand. This will help you a lot along your search from dealership to dealership as you will have a better idea of what a competitive price should be. A good place to start is finding out how much the dealer or seller paid for the car in question. This will allow you to know how much the dealer or seller stands to make as a profit and guide you as you negotiate. Be sure to test drive the car and have it inspected by a trusted mechanic once you are sure you want to purchase.
Don’t try to compete with your friends
Everyone’s financial situation is unique so why bother trying to compete with your friends. Remember this when choosing a car. It may or may not play a role in your choice but always remember to stick to your budget and consider your own unique needs and reasons for needing a car. In essence, do what is best for you.
Don’t show all your cards to the dealer
No not a black jack card dealer, the car dealer of course! Once negotiation starts, remember to put your game face on. Try to hide your hand for as long as you can, if not you will allow the dealer know whether he can low ball you or not. This is a great negotiation tactic and one you will need to use during your car purchase.
This list of do’s and don’ts are by no means exhaustive and are only a guide. We would love to hear from you if you’ve had any experience buying your first car and what tips and tricks you used to get the best bargain. Share with us!