Preparing for an Auto Purchase

Nothing beats the rush of taking your new car for a spin. And knowing you also received the best deal on it feels even better. But first things first - you need to get your finances in gear and find the right car for you. Here are some guidelines to think about to help get you going:

• Check your credit report and score. Before you sit down and meet with lenders or a representative from dealer financing, review your credit report and score first and dispute any inaccuracies. Mistakes, missing information, or identity theft could be affecting your credit. And remember, checking your own credit report will not affect your score.

• Determine your budget. If you acquire an auto loan, you will be required to make monthly payments for the length of the loan. How much can you afford to spend on auto payments every month? Take into account additional costs such as gasoline, maintenance, insurance, and miscellaneous car care, as these factors may vary from car to car.

• Do your research.Information is key to helping you make the right decisions. In addition to knowing about your credit, consider these other areas:

• Find out how different autos rate in terms of value, repairs, safety, and other invaluable information by reading car reviews at www.consumerreports.org. Some sections of this site will require consumers to subscribe.
• Visit consumer car-buying and leasing resource guides such as www.carbuyingtips.com that offer suggestions on how to handle different car-shopping scenarios.
• Check pricing information for cars and available options from the manufacturers’ websites and be sure to visit and compare with other pricing sites such as www.autobytel.com so you can get a better idea of what the average price of a particular car would be.
• If you have a trade-in, check out guides to help you find the value of your trade-in vehicle. Online guides include www.nadaguides.com and offline guides include the Consumer Reports Used Car Buying Guide.

• Shop around. Put on some comfortable shoes and visit several different car dealerships. Don't forget your driver's license if you're planning to take a car for a test-drive. Check the factory sticker, which lists the Manufacturer’s Suggested Retail Price (MSRP). The sticker will list information such as the features of the car, including its fuel-efficiency rating for city and highway. Sometimes you may also see a dealer's sticker, which includes options and services provided outside of the factory. When comparison shopping, be prepared to take notes.

• Negotiate. Once you have narrowed down your decision, it's time to negotiate a fair price. Consider starting with the dealer's cost of the vehicle and work up from there. Know your ceiling and make sure you don’t exceed it. If you know what other dealers are offering, use competitive information to your benefit. And, as a consumer, if you don't feel comfortable making a decision right away, don't be afraid to walk away and come back later.

• Make your purchase. Once you have made a decision to purchase a particular car, you will need to make some financing decisions. Shop around for the best rates and terms. The incredibly good rates you hear advertised are sometimes introductory rates that apply to the first year of the loan, so be sure to read all the fine print. Find out about any special promotions, rebates, and warranties that may apply.

• Monitor your credit. Reviewing your credit on a regular basis is a good way to keep track of where your credit stands. When you review your credit, you'll be able to stay on top of your open credit accounts, inquiries, and more. With enrollment in Experian Credit Manager PLUS^SM, you not only get unlimited Experian Credit Reports and scores with paid membership, you'll get the tools and information you need to stay on top of your credit.

Shopping for a new car can be an exciting time. Being organized, thorough, and knowledgeable puts you in the driver’s seat throughout the process. After your car shopping experience, you may discover more items to add to this list of guidelines that you can pass along to another auto buyer like yourself.