5 Car Buying Tips for Women

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Are you, or someone you know, in the market to buy a new car? The Fall Season is the best time to shop for a car because the New Year models come in, and dealers give great deals for older models to make room. Buying a new car can be exciting. However, the car buying process can also be intimidating and stressful for some women. If you are in the market for a new car now or in the near future, here are some Car Buying Tips to help save money and minimize stress when shopping for your next car.

KNOW YOUR BUDGET

The first and most important tip is to know “How much you can afford!” Do NOT let a car dealer’s finance department or bank tell you how much you can afford. Both essentially want to ensure that you borrow as much as possible so they can make more money off of you. The more they can make you believe that you can afford, the more the car dealership will make on the car and the more loan interest income the bank will earn on your loan.

GET PRE-QUALIFIED

The best way to avoid unpleasant surprises; like, not qualifying for the amount wanted, needing a cosigner or getting a ridiculously high interest rate, is to get Pre-Qualified or Pre-Approved for an auto loan. Go to your bank or credit union to apply for an auto loan. Tell them the payment amount you can afford to pay so they can determine the total loan amount based on the interest rate and term you qualify for based on your credit. Remember, the Higher your Credit Score, the Lower your interest rate, which may increase your qualified loan amount. Adversely, the Lower your Credit Score, the Higher your interest rate may be, which may reduce the qualified loan amount and require a down payment.

RESEARCH BEFORE YOU CAR SHOP

Now it’s time to have some fun going online to search for a vehicle in your price range. Dealers with No Haggle Deals are good because they, usually, sell their vehicles below NADAguides or Kelly Blue Book (KBB) value. Next go to NADAguides or KBB website to find out and print the Trade In and Retail Values to take when you go shopping.

TAKE A MAN WITH YOU

Some people may disagree, however,  when in doubt … take a man with you to the dealership. Take your husband, a boyfriend, father, brother, uncle, male coworker or that dude from down the street. Even if he knows nothing about cars or negotiating, take a man with you when you go car shopping. If the sales person begins speaking directly to the man, play along and coach your escort in what to say or not say. You are in control of the transaction; he is just a figurehead. Although not at all dealerships … unfortunately, women are sometimes taken advantage of during the car sales process.

NEGOTIATE BEFORE THE TEST DRIVE

Sometimes we lose our mind after we get intoxicated by that “New Car” smell during the test drive. My advice is to negotiate before you test drive to have a clear mind during the negotiation process. Here are a few things to do when you get to the car dealer:

• Tell the sales person that you are doing a cash purchase. (Because you have already been pre-approved!)
• Do NOT give your personal information or allow them to run your credit. (Again, you are already pre-approved.)
• Tell the sales person what type of car and the price you want.
• Ask if the car has any rebates or if the dealership has any incentives.
• Ask to see the buyers order with options to see the breakdown of all expenses and fees to help you with negotiating.

Use your NADA or KBB value to negotiate the price as close to the Trade-In value as possible. Negotiating the price as close to the Trade-In value will give you equity in your car, as well as help you when you decide to trade in the car later.

Even if you are not able to get your dream car now, by getting a reasonably priced vehicle within your budget, you will help save money and get that dream car in your near future. Happy Shopping!