Buying and owning a car shouldn’t feel intimidating. In this monthly Pink series, automotive expert Christy Spooner shares the insider knowledge every woman should have to confidently choose, buy, finance and care for a vehicle.
Don’t Let the Dealership Intimidate You: 7 Things to Know Before You Buy a Car
Buying a car is one of the largest purchases most of us will make. Yet somehow, many women walk into a dealership feeling as though everyone in the building knows something they don’t.
Here’s the good news: You don’t need to be a car expert to be a confident car buyer.
You need to understand the process, know your numbers and be willing to ask questions.
Today, you can do much of your research before you ever set foot in a dealership. You can compare vehicles, inventory and pricing online, research the value of your trade and even arrange financing ahead of time.
The more you know before you arrive, the easier it becomes to stay in control once you’re there.
- Know what you’re shopping for before you arrive
Don’t make the dealership your first stop.
Spend some time online determining what vehicles meet your needs and approximately what they cost. Narrow your choices enough that you’re walking in to evaluate a vehicle—not asking someone else to decide what you should buy.
- Don’t negotiate solely around a monthly payment
This is one of the most important things to understand.
A monthly payment can make an expensive vehicle appear affordable simply by stretching the financing over a longer period. Instead, understand the actual purchase price of the vehicle, your interest rate, loan term and what you’ll ultimately pay.
Christy’s original advice is to keep the transaction transparent rather than allowing price, financing and trade-in to blur together.
- Ask for the out-the-door price
You want to know what the car actually costs after applicable taxes, fees and add-ons.
Ask for an itemized out-the-door price and review it.
If there’s a charge you don’t understand, ask.
A good rule for any major financial transaction: Never be embarrassed to ask what you’re paying for.
- Know what your trade is worth
Before going to the dealership, research your current vehicle’s approximate value. You may also want to obtain outside offers so you have a benchmark.
Then negotiate the vehicle you’re purchasing before folding your trade-in into the conversation.
Why? Separating the numbers makes it much easier to understand where you’re actually gaining—or losing—money. Christy specifically recommends establishing the purchase price first and using an outside trade quote as a baseline.
- Know your financing options before you go
You don’t have to wait until you’re sitting in the finance office to discover what interest rate you qualify for.
Talk with your bank or credit union about preapproval before shopping. Then, if dealer financing can offer you more favorable terms, you have something concrete to compare it against.
You’re no longer asking, What rate will you give me?
You’re asking, Can you beat the rate I already have?
That’s a very different negotiating position.
- Slow down in the finance office
The finance office is often where additional products are introduced: GAP protection, extended warranties, wheel-and-tire coverage, prepaid maintenance and other options.
Some may make sense for you. Others may not.
Don’t make a decision because you’re tired and want to go home.
Ask what each product costs, what it covers, whether it’s optional and how it changes the total amount you’re financing.
- Remember: You can walk away
Perhaps the most empowering thing to remember is that you are the customer.
If you don’t understand the numbers, ask.
If something changed from what you previously discussed, ask why.
If you’re uncomfortable with the deal, don’t sign it.
Buying a car doesn’t have to be intimidating. Preparation changes the experience.
Walk in knowing what you want, what you can afford and what questions you’re going to ask.
You don’t have to know everything about cars.
You just need enough information to stay in the driver’s seat.
Pink POV
A little preparation can create a lot of confidence. Know your budget, understand the numbers and don’t confuse asking questions with not knowing enough. Smart women ask questions, especially when thousands of dollars are on the line.
