Once you make the decision to purchase a new car, you might be eager — and even impatient — to buy the vehicle and officially call it your own.
Slow down before getting ahead of yourself; there are a few key steps to take and considerations to make before bringing home the car of your dreams.
From researching and test driving to finding a great interest rate and trading in your current vehicle to completing all the necessary paperwork, there’s a lot involved with purchasing a new vehicle.
Here’s what you need to know about buying a new car:
4 PHASES OF BUYING A CAR
Buying a vehicle isn’t as simple as walking into a dealership and walking out an hour later with your new car. There are four phases of buying a vehicle:
- Research your future vehicle
- Shop for your future vehicle
- Complete the paperwork
- Set up insurance
1. Research Your Future Vehicle
Perhaps one of the most important steps in the vehicle purchasing phase is also the one that will take the longest for most car buyers.
Researching the perfect vehicle could take a day to a week or potentially even longer.
Here are a few considerations to make when researching a vehicle:
- Do you want to purchase a new or used car
- What is your budget?
- What are your priorities or must-haves for the vehicle? (Make, model, year, safety ratings, features or options, etc.)
- Do you want to purchase from a dealership or a private seller?
- Do you want to lease, finance, or pay in full?
- Do you plan to trade in a vehicle?
- Do you want to keep your current car insurance or go with a new company?
2. Shop for Your Future Vehicle
Once you’ve done your research and narrowed down your car options, it’s time to start shopping.
Plan on having up to a few days (around 1-3 days for most) to shop around for potential cars.
To get the best deal, be sure to consider several dealerships or owners. Not only will you give yourself more options and more vehicles to test drive, but you’ll also have a better chance of negotiating a great deal.
If you’re planning to buy at a dealership, consider shopping later in the month, quarter, or year. Holidays and early in the week are also great times to buy. These times are best known for getting both the best deals and benefiting during times when salespeople are expected to meet their sales goals or quotas.
Meanwhile, use this shopping phase time to identify potential financing options for your purchase.
3. Complete the Paperwork
After you choose the right vehicle and negotiate an agreeable price with the seller or dealership (which can happen quickly or last a few hours or even days), it’s time to make your purchase official.
In most cases, you’ll need about an hour to complete all necessary paperwork to buy a car.
During this phase, paperwork will be drawn up for financing (or getting bank approval), if necessary. Any add-ons such as gap insurance or an extended warranty will also be negotiated and signed off on.
4. Set up Insurance
You’re not done with the purchase agreement. You’ll need an additional 30 minutes - 1 hour to acquire car insurance before driving your car home.
While you might have an insurance grace period in some states, it’s important to have quality auto insurance secured for your vehicle purchase as soon as possible.
HOW LONG DOES IT TAKE TO BUY A CAR?
Between the time to research and choose the car you want, take steps to get your paperwork and financing in order, and finally sign on the dotted line, you’ll need at least a few days for serious buyers to well over a few weeks (or more) for those who need more time to research to complete the entire process.
It stands to reason that car shopping should take some time: ultimately, you want to choose the right vehicle for yourself and your family.
HOW TO SAVE TIME WHEN BUYING A CAR
As you can see, there are plenty of steps involved in purchasing a new vehicle; but there are a few factors that could slow the process down.
Narrow down your options
It’s usually unhelpful to walk onto a car lot without doing any research beforehand. At best, you’ll waste a lot of time; at worst, you could end up with a vehicle you don’t really want.
Spend the time doing your research beforehand and identify your priorities for your new car. The better prepared you are, the quicker the process will be.
Start early
If you plan to finance your vehicle, be prepared by knowing your credit score and even have some financing options ready prior to choosing a vehicle.
Additionally, if you know what vehicle you want, start the negotiation process over phone or email with the dealership. That way, when you show up to sign the paperwork, the deal is as good as done.
Don’t forget important paperwork and information
If you’re headed for the dealership, don’t forget to bring these important documents and information (or you may just find yourself heading back home for them).
- Checkbook or payment for a down (or full) payment
- Driver’s license
- Car insurance (if available beforehand)
- Trade-in information (loan information, title, etc.)
Stay clear about non-negotiables
Car purchase negotiations can be stressful for many buyers, so it’s best to be clear before you walk in the door.
- What’s the price you absolutely will not go over?
- What are you willing to compromise on (as far as features, age of vehicle, etc.)?
- What are you willing to consider for add-ons (such as warranties)?
Stay firm in your non-negotiables and you’ll walk away feeling good about your purchase.
Depending on your situation and your needs, buying a car could only take a matter of days or last far longer if you’re holding out for the perfect vehicle. Do your best to be patient and clear about what you want throughout the process.
If you need help finding the best auto insurance coverage for the best price for your new car purchase, start by speaking to a SimplyIOA agent at 833.872.4467 or get an auto insurance quote online now.
