FAQ's
Where should I search for new car(s)?
How do I find the actual market value of a car?
Where can I find financing or get loans for buying a new car?
Is it ok to negotiate on the price of a new car?
General process of buying a new car
Below we outline the normal (general) process for buying a new car:
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Consult with your friends / family who have previous experience in buying a car
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Set your budget
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Decide on your preferences for the car (brand, model, mileage, color, type (sports cars, sedan, etc.,), condition, etc)
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Search for the car (online web sites, dealers, magazines, etc) that fits in your budget
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If you like a car, ask the seller / dealer for its VIN. Using the VIN, check out the vehicle history
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Check out the vehicle' market value (e.g. using Kelley Blue Book)
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If you are satisfied with the car's history, do a test drive to get a feel of the car
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If you are satisfied with the results, buy the car. If not, repeat the above steps to look for another car.
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Factors that determine the price of a new
A new car will cost you anywhere above $ 10,000. We have listed some of the important factors that determine the price of a new car:
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The maker and the model of the car (Japanese brands such as Toyota, Honda will command more price compared to American brands such as Ford, GM, etc)
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The year the car was manufactured (the car made in the latest year will likely be costlier than the one made a year before)
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Seller or Dealer of the car (some dealers will set higher margins as compared to other dealers. Hence, it is a good idea to check price of the same car with different dealers.)
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Your buying location (Because of higher taxes levied by the state, cars bought in some states will be costlier than the cars bought insome other states)
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Benefits and drawbacks of buying a new car
Benefits: The main benefit of buying a new car is that it is 'New'. In most cases, you will not have to worry about any maintenance issues of the car at least for a couple of years. Moreover, most new cars now come with a few years of limited warranty.
Drawbacks: The main drawback of a new car is that since it is a new car, you will also have to pay a higher amount on car insurance.
Also as a student, unless you have lot of money, buying a new car will be very expensive for you.
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Researching new cars
You can definitely make some research on your car. You can find out the history of the car such as its previous owners, were there any accidents on the car, etc. Every vehicle in the US has a Vehicle Identification Number (VIN). You can use the VIN to find out the past history of the car. This is extremely important before buying a car. You don't want buying a used car as a new car under the pretext that it is brand new.
Therefore, make sure that you check out the history of the car.
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FAQ's
Where should I search for new car(s)?
You can search for new cars at:
Dealers
The best way to buy a new car is through an authorized new car dealer. Most dealers will allow you to take a test ride. You don't have to immediately purchase a car. You can test different cars and see how you feel while driving them and then take your decision.
You can also consult with your friends / senior students about dealers in your area, you can also go on-line and find out.
Web sites
Some web sites such as cars.com, autocars.com, etc., provide listings of new cars. You can find information such as the make, model, price, mileage, etc. Sometimes they even provide a picture of the car. You can do a search based on the location (use zip code) to find out the sellers in your area.
Check out our 'Useful Links' section to find out car dealers near your location. You can also consult with your friends / senior students about dealers in your area.
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How do I find the actual market value of a car?
A website called Kelley Blue Book specializes in determining the actual market value of a car. You only need to submit basic information about your car such as the make, model, age, mileage, condition, etc. Then, the web site will provide you the actual market value of the car.
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Where can I find financing or get loans for buying a new car?
If you are not a citizen or a Green Card holder, or if you don't have a fixed regular income, it is hard to get financing in the US. Nevertheless, you can talk with your bank or even with the dealer to check out if there are any financing options. Some dealers might allow you to pay in regular installments (pay the car monthly).
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Is it OK to negotiate on the price of a new car?
Of course, it is ok to negotiate the on the price of the car. In fact, you should not buy any car without negotiating. In most cases, the seller will put a margin in the selling price of the car. You should negotiate with him on the price of the car. If you negotiate well, the seller will definitely reduce the price by a couple of hundred dollars. The lowering of the selling price is not guaranteed, but its worth a try.
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