A New Car at the Best Price - Four Things to Know Before Buying a New Car

You know the make, model and color of the car you have been dreaming of. Finally, you decide that it has been long enough, a trip to the car dealership is in your future. Buying a new car is exciting and a major commitment. Car payments can last up to six or seven years depending on the price of your new car. Before going to the lot to pick out your new ride, here are a few steps you should take to ensure the best deal.

First, get a copy of your credit report. If you know you have good credit, a score of 675 or higher, then you will pay lower interest rates and end up saving a ton of cash. Also, is there anything more embarrassing than having the car picked out, the deal is done and then the salesman tells you that your credit was not approved? Save yourself the time, hassle, and embarrassment by reviewing your credit before buying a new car.

Second, don't wait until your old car is on its last leg to go shopping for a new one. There are a few reasons why this is not a good idea. If you are trading in the old car on the new one, the dealership will not give you top dollar on a car that barely runs. Additionally, if you don't have a reliable car that you could use, it is easier to take any deal that comes your way. You have no backup so the dealership is more likely to get more money out of you.

Next, use your history as an advantage. Were you in the military? Did you graduate college? Some dealers give a discount for serving in the military or graduating college. It is usually a couple hundred dollars, but every little bit helps lower those monthly payments.

Finally, don't be afraid to shop around. Yes, buying a new car is time consuming and can be extremely unpleasant, but this is a major purchase. Find a car you like. You can be choosy of the make and model, but be a little more flexible when it comes to color. Take a paper and pencil with you and compare prices. As you go from car dealership to car dealership, show the salesperson the numbers from previous dealerships. If they want the sale they will beat that price. Also, don't buy the same day you first look at a car. Take the numbers home with you and think about it. You can even call dealerships you have gotten quotes from and tell them dealership B is willing to sell me the same car for X amount of dollars, can you beat that price?

By following a few simple steps, a new car will be parked in your driveway in no time.