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How Buy Car - How to Buy a Car - Preparing to buy a car, Visiting dealerships

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Buying a car is a big job, and knowing the ins and outs of how to buy a car is very important before setting yourself to the task. However, there are several important concepts that must be understood before you can really learn how to buy a car.

Preparing to buy a car

Before you go shopping, you have got to check your credit. Financial experts recommend that you check your credit report about six months before making a major purchase like a car. Only car buyers who know what their credit report can bargain for the vehicle they want. When the time is closer to purchasing a car, then it is time to start thinking about what kind of vehicle you want. Do you want new or used? Car or truck? Does the color matter? Simply having an idea of what you want is an important part of learning how to buy a car.

Visiting dealerships

The next step in learning how to buy a car is to start visiting dealerships. One of the first things car salesmen will ask is what kind of payments you are looking for. It is always good to have an amount of monthly payments in mind, but that should not be the way you settle on a price for a car. Always look for the total price of the car, and then try to bring in the payments around it. A salesman who will only allow you to look at cars by amount of monthly payment should be a bad sign.

Beware of the four square technique

Another thing to watch out when learning how to buy a car is the four square rule. Anyone who has ever been seriously considering a car purchase has seen the four square trick. It basically involves the salesman writing four squares on a sheet of paper. One square is the dealer’s asking price on the vehicle the buyer is considering. The others are the price for the trade-in vehicle, the amount of the down payment, and the monthly payment amount. Typically salesmen will ask for higher numbers when you are talking about price ranges. This is a technique they use to increase the amount of money you end up paying for the car. For example, they may ask for a range of monthly payment amounts, and the higher number will always be written in the four square.

Know the value of your trade-in

Another way car salesmen will try to get you to pay more for a car is by playing with the price of the trade-in. You should always know the value of your vehicle trade-in before you set foot in a dealership. This is because they may try to get you to think that they’ve sold other cars that are the same make and model as your car for a lot less than what they are offering you as the trade-in value.

Learning how to buy a car is an important part of not being taken advantage of, but understanding the tricks that salesmen use to get you to pay more will go a long way toward learning how to buy a car.

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