Determine How Much You Can Spend
Research Online
Know How Much the Dealer Paid for the Vehicle
Set Your Price
Call, E-Mail, or Submit for Pricing Online
Negotiate
Credit Union Financing Is Usually Your Best Bet
Test Drive
Close the Deal
Avoid Too Many Extras
Determine How Much You Can Spend
Create a budget. According to most financial planners, a monthly auto payment should be no more than 20% of your monthly gross income. Also, know your credit score up front. For more about credit scores click here. Use our payment calculator to calculate the vehicle cost and monthly payment that meet your income.
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Research Online
Don’t let your purchase be an emotional decision--research online before visiting the dealership. Click here to begin researching new vehicles online through the Autobysite website.
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Know How Much the Dealer Paid for the Vehicle
Knowing the invoice price on a new vehicle will help you negotiate a better deal. This is the price the dealer paid for the vehicle, excluding any costs for advertising, destination charges or special regional pricing. Click here to research pricing on new vehicles through the Autobysite website. On a used vehicle, it’s important to know the wholesale and retail values. Our trade-in values section can provide you with this information.
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Set Your Price
Figure out the cost for options and subtract any rebates or incentives currently offered for a new vehicle. Also consider whether you will be paying cash or financing. If you have a trade-in, find out how much it is worth. Research trade-in values and make sure to factor in the condition of your vehicle.
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Call, Email, or Submit for Pricing Online
Through Autobysite you can work with dealers to receive pricing and availability on new vehicles before visiting the dealership. You can do this by phone or right here online. Call one of our representatives at 713-996-7255. For online requests, the vehicle and options you have selected are sent directly to the dealer. Click here to begin an online request.
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Negotiate
Negotiate up from invoice, not down from Manufacturer’s Suggested Retail Price (MSRP) or “sticker” price on a new vehicle. On a used vehicle, negotiate up from wholesale value, not down from retail value.
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Credit Union Financing Is Usually Your Best Bet
Don’t be fooled by 0% or low-interest rate financing. We’ve done the math for you! Click here for more information.
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Test Drive
Don’t ever buy a car without taking a test drive, even with a new vehicle!
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Close the Deal
Don’t forget to use the information you researched on your trade to get the most for it. Have the dealer show you the price for your trade separate from the deal; dealers often package the amount offered on your trade with the final figure of your monthly payment. One way you can ensure that you are clear on the exact amount being allowed is to offer the trade at the last minute. It’s important that you get the best overall purchase price, a reasonable monthly payment, and a good deal on your trade.
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Avoid Too Many Extras
Once you reach the Finance & Insurance (F&I) office, the dealer will offer you various extras for your vehicle. Of the multitude of choices offered, we suggest considering the following:
Service Contract: If you’ve financed or leased for a short term (36 months) you probably don’t need a service contract . If you are planning to keep the vehicle for five years, consider this purchase. Make sure the service contract covers wear and tear and mechanical breakdown. Also, know the difference between a service contract. The more dependable of car you choose, the cheaper the warranty. Don’t be fooled by manufacturers’ warranties that give you 100,000 miles of protection, because they usually do not cover everything!
Guaranteed Auto Protection (GAP): Purchasing GAP is crucial if you owed more on your last vehicle than it was worth and agreed to have the dealer add it to your loan. GAP is also a wise choice if you drive a lot of miles each year, even if you make a down payment of 20%. The value of your new vehicle at the time of delivery decreases tremendously the minute you drive off the lot (and even more with a used vehicle). GAP protects you from the difference between what your insurance company says your vehicle is worth and what you actually owe the lender. Read the fine print. Not all GAP coverage is the same.
