31 Tips for Buying a Car From a Dealership

1. One year doesn’t usually make money difference in a new car. There isn’t much difference between the 2020 Civic and the 2019. If you can get better financing on the older model, then go with that. You’ll save a ton on payments and get basically the same car. The only difference is you’ll get slightly less when you go to sell it.

2. Instead of trading in your used vehicle, sell it privately. You can get between 10-20% more money. It’s not hard to sell it privately, and the savings can go towards a nicer new car.

3. Be honest with the salesman about your driving habits. Despite their tendency to sell you extra you don’t need, car salesmen are usually pretty knowledgeable about features. If you aren’t going to be doing any long-distance trips, tell them that! They might put you in a different vehicle.

4. When negotiating, stick to the total price of the vehicle. All in cost with taxes and extras. Shady salesmen will steer you toward the price per month. That’s how they get you to buy the really stupid stuff like undercoating. It’s only an extra $4 a month! Well over 7 years that’s $336 for something that’s basically worthless.

5. Avoid leasing even if the payments are less. The only reason you should be leasing is if you can take advantage of the deductions come tax time. Buying is cheaper in the long run.

6. Visit more than a few dealerships. Many people buy the first car they test drive at the first dealership because the salespeople pressure them into making a deal. You aren’t going to miss out on anything by taking your time to make the best decision.

7. Research the resale value of your car before you buy it. Some cars don’t hold their value. Some are fantastic.

8. If you know exactly what kind of car you want, then don’t even bother going into the dealership. Just send some emails to every dealer in your area. Ask them for their best price.

9. If you care more about safety, reliability, and a hassle-free driving experience, then a new car is a better idea than a used one. The three-year warranty that comes with a new car provides peace of mind. Any problems you can just bring it back to the dealer.

10. Unsure what type of car to buy? Ask the internet. There are lots of great car forums with knowledgeable drivers. And usually no salesmen!

11. You’ll pay more for a used car loan than you will a new car loan. These days, interest rates on a new car are hovering around 0.99%, but a used car loan could be 7%, or as high as 16% if you have bad credit.

12.  It’s easier to get a new car loan with bad credit than it is to get a used car loan. This is because the risk assessors at the bank are a lot pickier than Toyota’s financing department.

13. The only extras you should get are the ones that increase the value of the car. Fancy mats that cover more floorspace are good. This protects the inside from wear and tear.

14. If you must sell your trade-in to the dealership, make sure to negotiate the sale of the old car AFTER the purchase price of the new one. A dealer will be more likely to give you a good deal on the trade-in if they think giving you a bad deal will lose them the new sale.

15. Get an insurance quote before you walk into the dealership. Some cars and SUVs are weird. You can go less than $5,000 in price, but your insurance costs could double.

16. The dashboard camera the dealer tries to sell you is usually expensive and less quality than one you can buy on Amazon and install yourself.

17. Be careful of extended warranties. They don’t always cover the same thing as the base warranty. You might end up paying the same price for an extra 2 years and hardly any coverage.

18. Always test drive the exact model of car you’re going to buy before you buy it. There are big differences in sport vs regular models. You might not like the stronger engine.

19. Just like you’d get a home inspector before buying a house, you should get a car inspector before buying a used car. If the owner won’t consent to a mechanic giving it a quick look over, that’s a red flag.

20. Approach the dealer at the end of the month. Salesmen and dealerships have quotas. If you catch them in a down month, they’re more likely to give you a great deal.

21. If you see a new car advertised for a stellar price, then be careful. This is probably a stripped-down model with the absolutely minimum features. If it sounds too good to be true then it probably is.

22. VIN etching is a waste of money. Your car’s VIN is already etched into the vehicle. Adding an extra one or two is redundant. This is a total rip off.

23. Negotiate prices over text or email. If you do it in person then the salesman can get a read on you. It’s a lot easier to say, “Take it or leave it,” in an email than in person.

24. Determine the value of your trade-in before you go onto the lot. If the salesmen lowballs you then you can tell they’re scummy. Avoid this place.

25. Know your credit score before you try to buy a car. Everything in a vehicle transaction is negotiable, even the financing. So you’ll want to know what your credit is before the salesman comes back and says, “Sorry we could only get you this terrible rate.”

26. When test-driving a new car, make sure to take it on the highway. Some cars give a smooth ride on regular streets but are bumpy and noisy once you start going fast.

27. How comfy are the back seats? You should sit in them. You’ll be having guests back there. You don’t want them to be uncomfortable and cramped. Think of your poor mother.

28. What’s the trunk space like? Do the seats go back? Could a month’s worth of groceries from Costco fit back there? Some cars have deceptively tiny trunks. You’ll need to investigate.

29. Most dealerships will offer a roadside assistance package, but don’t pay for it. It’s usually provided free from the manufacturer. Get them to throw it in or threaten to walk.

30. The salesmen will never go over all the features on a vehicle. They don’t have time. A better option is to check out YouTube videos. Then you can watch a 20-minute presentation on everything that car has to offer.

31.  Bring a friend or family member. Since they don’t have a financial interest in this transaction, they can stop you from being hasty, or point out when the salesman is being a dick.