Buying a car is a big decision
Buying a car is one of the biggest expenses for most people. If you are like me and do not have tons of disposable income to buy a car purely based on enjoyment, making the right decision is critical. After going through the car buying process recently, I learned a lot and figured out that the most important thing for me was to make sure that the car fits my lifestyle. The last thing that I would want right now after making such a big purchase is to regret my choice every time, I get behind the wheel and I can thankfully say that it is not the case.
I’ve seen people make this mistake over and over by buying a car because it looks cool or because they got talked into something at the dealership. A buddy of mine bought a convertible because it would be great to put the top down in the summer. But it is cold 9 months out of year where he lives and having a convertible top is just not great with the elements for most of the year. That fun car just is not fun anymore!
My #1 piece of advice is to think about how you live and not just how you wish you lived. Let’s get into it.
What do you need?
Like with any other major purchase, making sure that you figure out what you really need in a car before you walk into the dealership will end up saving you a lot of money.
So where did I start? I figured out that space, comfort, good MPG, and reliability were at the top of my list. I, of course, wanted something cool and exciting to help enjoy my suburban dad days, but I had a budget in mind, so I prioritized the necessities.
So, let’s dive into the budget question. Since my last car had already paid off, making any car purchase (new or used) would be an added expense. Since I had to get a loan, I did my research to understand average interest rates in my area and my trade in value (which was pretty much nothing!) to figure out what price range I should stay in. On top of that, insurance rates may be higher, and registration will almost certainly be higher so make sure that you include as many costs as you can think of.
Create a list with both must and nice-to-haves
These days, there are so many incredible technological advances in the automotive industry. It’s easy to get overwhelmed when you look at the possibilities and features available. Instead, create a simple list of things you absolutely need vs. nice to haves. This will help you navigate all the different options while staying focused.
My “Must-Have” List
These are your non-negotiables. Include any features and specifications I absolutely require.
- Great gas mileage for my long commute
- Comfortable seats for that same long commute
- Space for my wife, kids, pets, and all their gear
- Safety features were at the top of the list for my family. I included some extras like rear cross traffic alert, emergency braking, and more.
My “Nice-to-Have” List
If you could have these features, great. However, if they push the price up too much, skip them.
- Ventilated seats to keep cool in the summer and warm in the winter
- Automatic cruise control for longer drives
- Ample USB charging ports
- Rear storage for family road trips and transporting kids to soccer
Do a real-world test drive
Most dealerships will take you on their prescribed test drive route. To get a better feel for what it would be like driving on your regular route, map out your regular routes. You want to simulate how you would drive in your daily life.
If you take frequent highway trips, be sure to include some highway driving too. While many salespeople are directed to keep you on “their” route, trust know that you will likely not get much push back because they are motivated to make the sale.
Some other test-drive tips include:
- Adjust the mirrors, seats, and any other features so they are customized to you
- Leave the radio off for part of the ride to better hear the car.
- Turn the air conditioning or heater on for part of the ride to make sure they are not too noisy and that they provide ample temperature control
- Consider taking the test drive at night because some cars have terrible headlights. It would be a shame to learn the night visibility is poor after you already paid for the car.
In the end, just make sure that your test drive is as close to your real-world driving experience as possible, and you should be good to go.
Negotiate and be ready to walk away
Walking away is sometimes the best way to get a great deal on a car. But you need to do your research to know the actual value of the car, specifically in your location. There are useful websites and forums where people post about their car buying experience, the different offers they received, and ultimately what they paid. Dealerships know when a customer has done their homework and will likely respect your pushback even more.
Helpful Websites for negotiating and learning about market value pricing include:
- Edmunds – Get true market value pricing, reviews, and buying advice
- Kelley Blue Book (KBB) – Great for checking trade-in values and fair market pricing
- Cars.com – Browse local listings, dealer reviews, and car comparison tools.
- CarGurus – See price analysis and history for used cars and dealer ratings.
- TrueCar – See what others paid for the same car in your area
- Reddit – r/askcarsales – Learn from real car salespeople and buyers about tips, tricks, and negotiation strategies
The only price that you should be concerned with is the “out the door” price. This includes the price of a car, fees, sales tax, and anything else they try to tack on. Most dealerships will try to play games and ask what you want your monthly payment to be. Do not fall for that and end up having a lower monthly payment with a loan that lasts for many more years than you want. In fact, having pre-approval from a different bank will give you piece of mind that you have that option, or you can use it as a negotiating tactic to lower their rates.
And finally, be ready to walk away. The best thing to do is trust your researched knowledge, stay calm if things do not go your way, and walk away. Expect that they will do everything in their power to make a sale while you are still there. If they still are unable to meet your expectations, just walk away and I guarantee that you will hear from them tomorrow.
So, what did I end up getting?
With my commute and family (human and furry), I ended up getting a Toyota Highlander Hybrid. This SUV meets my family’s space and safety needs and is not too large when it is just me on my daily commute. And with the hybrid engine, the combined MPG is spectacular compared to other SUVs of that size.
While I do sometimes wish that I had a fast and fun convertible to enjoy the summer days, 90%+ of my driving time is not for leisure, so my car buying process proved successful and I have no regrets. Well, except maybe when I see someone else fly by with their fast and loud sports car…
Some final thoughts to tie it all together
At the end of the day, the best car is the one that makes your life easier. Make sure that you figure out what you need vs. what would be nice-to-have, do your research on prices in your area, secure financing before you walk into the dealership, and be ready to walk away if you don’t get what you want.
If you follow this recipe, you will be on the road in your new car knowing that you got the best deal for you.
