May 15th, 2018 | Updated on August 3rd, 2026
Buying a new car is quite a big step! The best thing is that it doesn’t have to be expensive. Researching and finding your favorite car takes work.
Though most people use mobile technology to make it easier, sometimes it doesn’t help, especially if you don’t know what factors to look at.
The most important steps to follow when buying your car
1. Research the car you want plus its features – There is so much information online about the car the car that you want.
Who needs cars that are not their favorite anyway when you can easily find the best that you want without breaking the bank? There are millions of sites that give proper information for each type of car that you want to find out.
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2. Get approval for a loan – Your car loan is important. More important is understanding how much you can afford and what interest rate you are to pay compared to the dealership financing.
You’ll of course want to find a loan that has affordable monthly payments and a healthy interest rate so that you’re not overpaying for a car in the long run.
It can be beneficial to look into low doc car loan requirements to see what you need to have ready in order to get the best possible loan.
Having an online loan requiring fewer documents arranged means that you can spend time deciding what car fits your budget and pursue it.
3. Plan your trade-in – This will only affect you if you have a trade-in. Before you go to the dealership, get an appraiser to tell you how worth your old car is. Be honest about the condition of your car, no matter where it stands.
4. Locate and test drive the car of your choice – By now, you must have settled on a car or a few cars to choose from. Whatever site you have found the car or cars, visit the physical location to view them and test drive them.
Most of these cars have a variety of options to choose from with different features. Do not be carried away by the wide variety of choices.
Even after the test drive, if you need more time to think through your decision, don’t feel obliged to buy your car on the same day you view it.
5. Check for any sale price or warranties – Once you settle on a target car, now focus on getting a price.
Ensure you get a quote that comprises of the whole price and anything extra that is included. Also ask for a preview of the products that the dealership is offering you like an extended warranty, a prepaid maintenance plan, etc.
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6. Close the deal – If everything – the price, the financing and the fees look right – then go ahead and say yes to the deal. Most people prefer to close the sale at the dealership.
Once you have agreed on a price, then go to the finance and insurance office and sign the contract as well as any forms for the additional services as agree and required.
7. Have your car delivered – Whether you choose to take your car home or have the dealership deliver it, it is now yours. If delivered by the dealership, the car should be clean with the tank full.
Give the car a final walk-around to ensure it does not have any dents or scratches that may have occurred during the transport process.
Allow the salesperson to give you a final run down of important details like pairing it with your smartphone or demonstrating other important and safety features.
What’s Changed in Car Buying Since 2018
The seven steps above still hold up, but the car market has shifted a lot since 2018. Prices, loan terms, and negotiation tactics all look different today. Here’s what to add to your plan before you head to the dealership.
Today’s Price Reality: New vs. Used
New car transaction prices have climbed well past where they sat when this guide was first published, with recent industry data putting the average new-car price close to $49,000.
Used cars remain the more budget-friendly route, with average prices in the mid-$20,000s, though used-car loans typically carry noticeably higher interest rates than new-car loans.
Buying a car that’s one to three years old is still one of the better ways to dodge the steepest depreciation while it’s often still under the original warranty.
Rethink Financing Before You Shop
- Get pre-approved for a loan before you visit the dealership. It confirms your real budget and gives you leverage to compare against the dealer’s financing offer.
- Shop your loan the way you’d shop for the car itself — quotes from a bank, a credit union, and an online lender can vary significantly based on your credit profile.
- Be cautious with longer loan terms. 72-, 84-, and even longer-month loans have become common because they lower the monthly payment, but they also mean more interest paid overall and a higher risk of owing more than the car is worth if you sell or trade in early.
Negotiate the Out-the-Door Price First
Modern negotiating advice centers on one rule: agree on the total out-the-door price before any conversation about financing, trade-in value, or monthly payments enters the picture.
Keeping those discussions separate stops a dealer from using a low monthly payment to obscure a high overall price.
Treat a trade-in as its own transaction too — getting a separate appraisal beforehand, as the original guide recommends, still protects you from a lowball offer folded into the deal.
Time Your Purchase
Seasonal patterns still matter. Late spring and summer tend to bring stronger incentives as dealerships push post-winter sales, holiday weekends like Labor Day often come with extra promotions, and the final months of the year are typically the best window for clearance pricing on outgoing model-year inventory.
Don’t Overlook Electric and Hybrid Options
Automakers have expanded their electric and hybrid lineups considerably since 2018, and many now come with strong manufacturer incentives to move inventory.
If you’re cross-shopping, factor in charging access, expected fuel or electricity savings, and any current tax credits alongside the sticker price — the total cost of ownership can look very different from the upfront price alone.
Quick 2026 Checklist
- Get pre-approved financing before you shop.
- Compare loan offers from at least two or three lenders.
- Negotiate the out-the-door price before discussing trade-in or monthly payments.
- Avoid loan terms longer than 72 months if you can help it.
- Time your purchase around spring/summer promotions or year-end clearance.
- Consider EV or hybrid options and any available incentives.
- Be ready to walk away — it remains the single strongest negotiating position.
