Top 5 Tips for Buying a New Car - NYCM Insurance Blog

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May 24, 2021

Top 5 Tips for Buying a New Car


Check Out These Five Tips for Finding A Car That Suits Your Needs and Your Budget!


Whether you’re an experienced buyer or this is your first time buying a new car, it is always a good idea to prepare before making a significant purchase. Knowing what to expect beforehand can save you money, time and stress in the long run! Check out these tips to help you find a vehicle that works for you and your budget. 


Figure Out What You Can Afford


It’s important to have a solid understanding of your financial situation before starting your search. A good rule of thumb is to spend no more than 25 percent of your monthly income on the cost of vehicles within your household. This should include loan payments, insurance, fuel and maintenance costs.  If you plan to finance your new vehicle, we recommend that you get pre-approved for your loan. Doing this will not only help the process along when it comes time to buy, but it will also help you think critically about what you can afford. You’ll want to do that before falling in love with something you don’t have the means to purchase. 


Do Your Research


Before you start to research vehicles, you will want to decide what buying a “new” car means to you. A used car may be less expensive, but it’s important to be mindful of the condition and mileage.  A new car will cost more upfront but may have fewer maintenance issues in the long run. 

 

Next, you’ll want to narrow your choices.  You might consider writing down the pros and cons for each vehicle on your list. Compare features, pricing, size, and MPG (miles per gallon).  When it comes time to purchase, you will have the advantage of knowing a fair price range for your vehicle of choice.  Many manufacturing websites will show estimated retail prices or MSRPs that may aid in your research. 

 

Finally, you can check your local inventory listings to see what is available in your area. Look for dealerships that may be running sales or promotions as well. Pro-tip: keep in mind that these incentives should be deducted after the price is negotiated. 

 

Consider the Time of Year


When it comes to getting a good deal on a new vehicle, the time of year you shop can make a huge difference in pricing!

Dealerships will often run their big sale events around spring, fall and the end of the year. Pro-tip: Purchasing late in the year and late in the month, for example the end of November, can lead to deeper discounts. Many car dealerships have sales quotas that they need to meet during these times which means they are more likely to offer compelling pricing.

 

Take Your Time 


It’s important to know that you can take all the time you need before committing to any purchase. Don’t hesitate to ask for more time during your test drive. Be sure to experiment with the controls and ask questions about features. In addition to your previous research, you might consider reaching out to your insurance agent before moving forward so that you have a good idea of what this vehicle will cost to insure. 

Remember that this is a business transaction. The process doesn't need to be rushed and you don’t need to feel pressured into purchasing before you are ready. You are in the driver’s seat!

 

Drive A Hard Bargain and Be Prepared to Walk Away 


For many people, buying a vehicle is no insignificant purchase. It makes sense to do everything within your power to get the best deal. Don’t be afraid to negotiate the price, in fact you should!  If after some time and a fair offer, you still don’t feel like you are getting anywhere - be prepared to walk away. Newer cars can sit on the lot for years before selling, so you can usually come back and try to renegotiate if that’s what you decide. Otherwise, you can move on to the next car at the next dealership.  

 

If you do end up making a deal, congratulations! You’re almost there! 

The last thing you will want to do before you sign your contract is to read over all of the details carefully and make sure that there are no unnecessary fees. Everything you negotiated should be laid out clearly in writing! 

 

Once behind the wheel of your new car, it may be time to shop around for new auto insurance. Check out the link below to find one of our local agents and learn more about NYCM policy discounts.