Briefly describe each step in the car buying process.

Question

What will be an ideal response?

Answer 1

1. Analyze Your Needs - You have to decide if you need a vehicle. If so, what size and type? Will you be purchasing new or used? Are you looking to buy or lease?
2. Determine What You Can Afford - Before looking at cars, you have to determine how much room is available in your budget for a car payment. Don't forget to consider other increased expenses such as higher insurance premiums and property taxes in your state.
3. Once you determine what you can afford, you can calculate how much car you can buy.
4. Research Value - Utilize the various web-based resources to determine a fair price for your car, whether it is new or used. A little bit of research could help you save thousands of dollars.
5. Negotiate Price - The key is to separate the negotiations into price, trade-in, and financing. Always start by negotiating the price of the car you are buying. You want to get the best possible price based on your earlier research.
6. Negotiate Trade-In - Only after securing a good deal on the price of your purchase will you begin to negotiate the price of your trade-in. Using your previous research, you should know what the true value of your trade-in is, so you are in a good place to negotiate.
7. Negotiate Financing - Once you have negotiated the best price for your purchase and the highest amount for your trade-in, you can negotiate the lowest interest rate. You should already have come prepared with some low rates from your earlier research to make sure you are not getting taken advantage of on this last part of the negotiations.