So, you need a new car. Maybe your only experience with car buying is seeing holiday commercials, where the Car Stork drops off nicely bowed, brand-new sedans outside of snow-dusted houses. Or, maybe you’ve done this drive before, but it’s been a while. 

It’s easy to get enamoured with systems like Car Vending Machines— a process that promises ease and convenience unmatched in the market —and forget that the car-buying process as a whole takes some time. So, whether you’re looking for first-time buying tips or refreshing your knowledge before you buy your next car, here are four EdiFi expert car buying tips!

Tip 1: Start with a budget, end up happy

Every successful car-buying journey begins and ends with a solid foundation— your budget. Remember, you're in the driver's seat when it comes to your finances. Set a monthly car payment budget and stick to it, ensuring you're always in control of your spending! 

Don’t have a budget, or is your current budget not cutting it? Check out our budgeting series to elevate your finances!

Tip 2: Get pre-approved for an auto loan and fast-track your experience

Getting pre-approved goes hand-in-hand with setting a budget: start your car buying experience with the money already in your pocket. Plus, pre-approved auto loans help keep dealerships from pressuring you with add-ons you can’t afford. 

New to credit or have low credit? Here are some ways to improve your chances of getting pre-approved for a loan:

• Provide proof of a steady income
• Make a larger down payment on your vehicle
• Ask someone with good credit (generally 690 or above) to co-sign with you

Now, it’s time to shop rates! Keep these in mind:

• Apply to get pre-approved with several lenders to find the lowest interest rate. Remember, make all your applications within two weeks to avoid multiple hits on your credit score.
• Not sure where to start? Check out EdiFi’s Auto Loan options and apply for preapproval today!
• Want more information on good auto financing habits? Check out our Auto Financing Do’s and Don’ts guide!

Tip 3: Know your stuff before you contact or visit a dealership

Finally, the part you’ve been waiting for! It’s time to shop for cars. Have you had your eye on a car for a while, and know it’s the perfect one for you? Feel free to skip down to the next section. 

Have no idea what you want? You’re in the right place! Here are some questions to consider:

• How will you use this vehicle? Do you travel frequently and need better gas mileage, or is your commute short?
• Are you more comfortable with a small car or an SUV?
• Do you need extra space for children, pets, or transporting cargo?
• While you may want an SUV, cars are cheaper to buy and maintain. Do you have the budget for a bigger vehicle?
• Are you interested in a new car with a warranty, or a used car that may require more maintenance?
• Do you want an eco-friendly car? If so, can you afford to pay more upfront?

While this list isn’t exhaustive, it will help set you on the right track. Once you have a better idea of what you need, compare different makes and models until you find the perfect car for you. 

Be sure to:

• Check fuel economy ratings
• Review IIHS ratings
• Compare the insurance costs of each vehicle
• Check online listings of multiple sellers and compare their prices
• Find reliability ratings for each vehicle

Tip 4: Get what you want, how you want it

You have a pre-approved auto loan in your back pocket, you know the exact car you want, and you have a dealership with the perfect specs and price. All that stands between your dream car and the perfect price is a little negotiation. Ready to drive off the lot (or out of the webpage) with your new ride? Here are some negotiation pointers:

Get pre-approved

Surprise! We may sound like a squeaky wheel in desperate need of grease, but a pre-approved auto loan in your back pocket will keep the dealership salespeople from trying to sell you things you don’t need.

Ask for Out-the-Door (OTD) Pricing

Avoid measuring price with monthly payments; ask the dealer for the out-the-door (OTD) price. The OTD price is the total vehicle purchase price, including sales tax, documentation fees, delivery and preparation charges, registration, interest, and any add-ons, all wrapped into one number. 

Negotiating the OTD price keeps the dealership from focusing on monthly payments and helps you think long-term. For example, a lower monthly payment with a longer repayment period might sound nice, until you realize, with interest, you’re paying double the cost. Focus on the whole picture rather than getting swept up in the month-to-month. Plus, with the OTD price, you can easily compare prices between dealerships!

Shopping online? When requesting a dealer price via email, ask for the OTD price with a breakdown of fees.

Review your contract and NEVER sign incomplete paperwork

Go through your contract carefully with the finance manager. Be sure to ask about any fees or add-ons you didn’t agree to. 

NEVER sign an incomplete contract or paperwork, and don’t bring a car home unless the paperwork is complete. 

Bring a friend!

Finally, if you are worried about being taken advantage of at a physical dealership, bring an experienced car buyer with you. Having the support of a car-buying veteran can bolster your confidence and help you leave with your ideal car (and price!)