If you’re a first-time car buyer, working with a car dealership is your best option. When you work with a dealership, you can test drive multiple cars and negotiate a price, secure your payment, and even sign some paperwork before you buy the car. Additionally, dealership salespeople are more likely to pay attention to you and your needs since you’re a first-time buyer. Here are some things to keep in mind before you sign on the dotted line.
o Know your budget. Before visiting a car dealership, determine how much you can afford. Remember that a new car loses about 20% of its value in the first year. Before you go ahead and sign the dotted line, it is a good idea to get pre-approved for a loan. The lower your credit score, the more you’ll pay later. If you’re a first-time buyer, you’ll want to be sure that you can afford the car, or you may end up regretting it later.
Remember that car dealerships are professionals. While many of them are dishonest and crooked, there are some good guys who are only in it to make a sale. These people have been trained to sell cars at the highest profit possible and to upsell high-profit aftermarket items such as extended warranties and insurance products. While these professionals are skilled at what they do, they are not trained to educate you about the car business and how to shop smartly.