Tips for buying a new vehicle

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If you’re looking for a new car, you’re in good company. Global car sales are expected to hit 70.4 million units in 2024. Looking for a new vehicle can be overwhelming, but it doesn’t have to be. There are many steps you can take even before you set foot in a dealership.

“Purchasing a new vehicle is a significant investment,“ Mechele Agbayani Mills, President|CEO of BBB Central East Texas said. “Careful planning and research ahead of time can help you feel good about the vehicle, payment option and dealership you choose.”

BBB provides the following tips to help you get started.

Consider payment options. Decide whether you can pay for the car in full or finance over time, or whether leasing the vehicle provides the best value for your money. If you decide to finance it or lease, be sure you completely understand the terms of the agreement before you sign.

Set a budget. Decide how much money you can spend. When calculating the cost, be sure to include the price of the tax, title, registration, fees, insurance, and cost of fuel.

Choose a model. Review various models to determine the vehicles which have the features which are most important to you including safety features, mileage, leg-room, etc. Consult resources like Consumer Reports. Consider additional factors like fuel economy, warranties, and operating costs. You should also look into theft rates as they can make your insurance costshigher. Investigate different cars’ accident history. Narrow your choices to several cars. Do not make the mistake of having your heart set on one car -- it may reduce your bargaining power.

Compare prices online. Look up the prices of different vehicles on websites like Kelley Blue Book and Edmunds. Doing a side by side comparison of a few models can reveal what each car has to offer for what price. This will also help you determine the value of your trade-in, if you have one.

Find a dealership. Ask friends and family members for dealerships nearby that they trust and that provided a pleasant experience. Read Business Profiles at BBB.org and look for the BBB seal. It’s the sign of a better business.

Once you visit the dealership: Take your time. If you don’t want to make a decision on your first visit, tell the dealer upfront. Let them know you want to take a test drive and will be making your decision on a purchase later.

Go on a test drive. Drive each model you are considering and try to do so in a variety of conditions (driving through traffic, on a highway, and on back roads). Take a test drive checklist with you to examine important characteristics of the car and check out all of the features. Check the brakes, steering, outward visibility, and gear shifting. Turn off the radio and listen to the engine for any noises. Try parallel parking to make sure the visibility is good and you can adjust all mirrors as needed. Ensure all of the dashboard lights are on and the instrument panel is easy to read. Test all seats for comfort. Ask questions. Check the exterior of the vehicle as well.

Keep all negotiations separate. Consider questions about financing, service contracts, warranties, trade-ins, or other extras after you have settled on a price for the car. You can let the dealer know you have a trade-in, in order to initiate the appraisal process, but keep the focus on the new car first.

Determine the price for car. The MSRP (manufacturer’s suggested retail price) sticker price taped to the car window is the amount the dealer is seeking and may be about 10-15% more than what the dealer paid for the car. Tell the salesperson exactly what car and options you would like, and ask for the best price. You may be less likely to get a good price on a more popular car that is in short supply. Make sure you discuss all the options you are interested in and that you are clear on any additional costs associated with the options. If the dealership allows it, consider bargaining for a better deal, and always get the final figure in writing. Shop around and see if other dealers will offer you better prices. Be patient when purchasing a new car. If the first or second offers are not desirable, you must be able to walk away.

Discuss your trade-in. Once you have finalized the price for your new car, move on to discussing the trading in of your old car. Keeping that negotiation separate from the price of the new car will help you stay focused on the actual price of the new car.

Ask about warranties and service contracts. Make sure the information on your warranty is detailed and includes whether the warranty is full or limited and what is covered, who covers it, and for how long. Read all the details about any additional service contracts and make sure you understand them completely before signing anything. If you are considering an extra- cost service contract, compare it to your warranty closely to check for duplication.

Signing the contract:

Keep in mind, once you sign the contract, you are legally bound to buy the car unless the contract specifically states any options to cancel, so it is imperative that you read and understand everything before signing. Be sure to keep all of your paperwork for the vehicle, including the warranty and loan papers, in a safe place.

For more information, go to the BBB Auto Resources page. It’s your one stop for all things regarding your vehicle. Go to bbb.org to find new car dealers near you.

ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for over 110 years. In 2023, people turned to BBB more than 218 million times for BBB Business Profiles on 5.3 million businesses, and 80,000 times for BBB charity reports on about 12,000 charities, for free at BBB.org. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States and Canada. BBB Serving Central East Texas was founded in 1985 and serves 19 counties in East Texas.