Only fools rush in…ask questions first!
It should be a no-brainer, but buying a new car is not only complicated, it’s intimidating and can take hours of your time and energy. And while the thought of driving off the lot with a brand-spanking new vehicle is exhilarating, take a breath and remember to ask these important questions before signing on the dotted line:
1. Are there any additional fees?
The stereotypes of shady car salesman didn’t emerge out of nowhere. But these days, it’s not as easy to dupe an unsuspecting car buyer into paying too much as it used to be. And to be fair, not all dealerships are out to trick you. That being said, don’t assume that the sticker price or the price you’ve agreed upon is the final amount—always ask about taxes, tag, and documentation fees before agreeing.
2. What are the typical insurance rates on this type of car?
Any dealer worth his weight will be knowledgeable about the cars he is selling and should be able to discuss this intelligently with you. Certain cars, like sports cars, smaller cars, hybrids, and high luxury vehicles in general are usually more expensive to insure. If the dealer cannot answer any of the questions that you have, call us or your insurance provider before you purchase. It’s no fun to buy a car that’s going to garner such high premiums that you’ll be strapped financially.
3. Do you offer any sales incentives or cash rebates?
Many dealerships will offer incentives to first-time car buyers, students, members of the military, and other types of customers. Be sure you ask about this and whether or not you qualify.
4. How costly are repairs for this type of car?
A cheaper car may be great today, but if it’s going to leave you stranded on the side of the road and costs thousands to repair, it’s obviously a poor choice. To protect yourself from potentially draining your bank account, make sure to inquire about the repairs, how much parts generally run, and how well this car holds up. It doesn’t hurt to check this out online before even heading to the dealership.
5. Is there a warranty and what does it include?
Most manufacturers are offering warranties on their new cars these days. But these agreements can vary from being a bumper-to-bumper, to a powertrain or some other variation. So it’s good to ask which one the car you’re interested in comes with and what is included.
6. Are there any tax credits for this car?
Some fuel efficient and electric cars are eligible for tax credits. But not all of these types of vehicles get the same credit and some are much higher than others. Ask the dealer what credits are available for each vehicle you’re considering so you have an idea of what you can expect to receive.
7. How many miles are on the car?
It’s a common mistake to assume that every brand new car has zero miles on it. But in many cases, the car you’re eyeing has been driven on numerous test drives or was a dealer trade (traded for another car from one dealer to the next). If it’s new and has more than 300 miles on it, you definitely should negotiate a lower price.
8. Are than any aftermarket parts included?
Usually a new car will come with certain options that were installed at the factory before they reached the dealership. But it’s not uncommon for a dealer to try and increase profit by charging for accessories such as mud-flaps, alarms, tinted windows, GPS tracking devices, and others. Although you may want some of these items with your car, you need to be aware of how much you’re going to have to pay for them, which is always more than the sticker price.
Buying a new car doesn’t have to be exhausting or daunting if you follow these tips and remain cognizant of all the fees that a dealership may potentially charge you.
When you’re ready, get in touch with us to get a quote on the cost to insure your new vehicle, we are happy to customize an insurance solution for you.