What is the process for buying a new car?

Question

I am currently trying to buy a car for the first time. Its a 2006 Honda Civic and i wantto know what are the steps for buying a new car and what is needed.

Answer 1

check out http://www.edmunds.com/caradvice.html
and
http://www.edmunds.com/zipcode/new/index.htm

these websites not only give you advice for new car buyers but also help you figure out what you can expect to pay for the type of car your looking for. Either way, do your research and talk to an expert before you make your purchase. A car sales man may or may not have your best interest at heart so Id start with getting your information from a friend or relative that knows what they are talking about.

Answer 2

You have to be the age of majority in your states as you will be singing a legally binding contract. If that's not you, then you'll need to bring your parents with you.

First, you select the car - color, features, and all. Test drive it. If you want to buy this car, then start negotiating on price. You can often get the price to come down to near cost figure, sometimes below. There are strategies for this, but that's another story.

Once the price is settled, you either pay it outright, (CASH), or apply for a loan, if you don't have one already. The dealer will give you a form. You fill it out. They'll come back in few minutes with offers. Check the contract and the rates. If you agree, sign it.

If you don't have the insurance already, make a call to your insurance company and have them issue you one before you drive out. They'll take care of most of the paper work. You'll just have to make sure to read all the fine prints and make sure it is exactly as what you agreed.

Then... just make the payments as you enjoy your new car.

Few pointers:

Make sure, they do not add excessive dealer prep fees. They can often be eliminated or reduced.
Do not agree to buy silly items like pin stripes. They cost nearly nothing for them to put on but will charge you few hundred dollars. Make them take them off or give it to you for free. They will do this.

For your loan, make sure there is no early payment penalty. Just ask, and have them point it out to you where it says so in the contract.

DO NOT LET THEM PRESSURE YOU to buy it today. There is no such thing as today only deal. If the deal is real, it'll be there tomorrow or a week later. My standard procedure is, never buy it on the same day. Go home and give myself 24 hours. If the salesman gives too much grief, just walk out.

Answer 3

Go to the dealer. The salesman will tell you all you need to know. You need enough for a down payment and good enough credit to qualify for a loan. You most likely will need a pay stub to prove your income and a rough idea of all your monthly bills.