Tips for Buying a New Car | PCH.com

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Tips for Buying a New Car

January 4th, 2013 Personal Finance

A new car is one of the most expensive purchases that people make in their lifetimes, which means it's important to get a good deal when you can by using the right buying strategies. If you arm yourself with information before you walk into a dealership, you should have no trouble negotiating with the dealer on a price that works for you. Here are some tips to consider next time you purchase a new vehicle, according to PowerToChange.com and LemonLawAmerica.com.

1. Research the kind of car you want to buy. This includes the model, options and price. Knowing exactly what you want will make you less likely to opt for more expensive selections that the dealer shows you.

2. Learn the invoice cost of the car you want. This is the price that the dealer paid for the car. PowerToChange.com suggests calling the Consumer Reports New Car Price Service to access all the information you need.

3. Shop around for the best possible price. Use online resources, advertisements and dealer showrooms to get an idea of different costs.

4. Plan to negotiate. Dealers are often willing to bargain on their profit margin, which is usually between 10 and 20 percent. This is the difference between the invoice price and the manufacturer's suggested retail price.

5. Begin bargaining by asking for the invoice price. Know that if the car you want is in low supply, you might have to pay the full sticker price.

6. Bring up a trade-in only after you've already negotiated a price. Make sure you know what your car is worth.

As long as you're prepared to negotiate a price and have done all of your research, buying a new car should be relatively painless!