There’s no shortage of advice about buying a car. Most of it is vague. Here is the actual process, step by step, that produces the best outcome for the buyer.
Start with what you can actually afford, not what you want to drive. This means:
Having a real number prevents you from being talked into a vehicle — or a payment structure — you can’t sustain.
Once you know your budget, find the right vehicle. Compare reliability data (Consumer Reports is excellent), total cost of ownership, insurance costs, and resale value. Don’t choose a car based on the monthly payment alone.
Once you’ve narrowed down to 2–3 candidates, test drive them before you commit to buying. This is one step where going to a dealership makes sense — test drive with zero purchase pressure.
If you’re financing, get pre-approved through your bank or credit union before you walk into any dealership (or contact any broker). Knowing your rate locks out one of the dealer’s most profitable levers — the finance office.
Credit unions typically offer significantly lower rates than dealer financing. Apply before your car shopping begins.
Look up the invoice price on Edmunds for the exact vehicle you want. That’s what the dealer paid. Your negotiation starts there.
For leases, look up the current money factor and residual value for your target vehicle on forums like MF Leases. These numbers are published monthly by the manufacturers and tell you whether the dealer’s lease quote is fair.
When you make contact with a dealer (or broker), negotiate the selling price of the vehicle first. Lock it in writing before any discussion of financing, trade-ins, or monthly payments. Each of these is a separate transaction.
Bundling them together is how dealers extract extra profit. Keeping them separate is how you prevent it.
If you’re trading in a vehicle, get its value independently first — Carvana, CarMax, and KBB Instant Cash Offer all provide real cash offers you can use as leverage. Treat the trade-in as a separate transaction from the vehicle purchase.
Dealers are masters at adjusting the trade-in value to make the overall deal look better than it is. Keep the numbers separate and it doesn’t work.
Read the purchase agreement or lease contract in full. Look for:
Dealers occasionally add items to contracts that weren’t discussed. It’s not always intentional — but it happens, and it’s your money.
Extended warranties, paint protection, gap insurance, tire and wheel coverage — say no to all of it in the F&I office. You can research and purchase these independently later if you decide you want them, almost always at a better price.
All of the above is what an experienced auto broker does for you — on every deal they work. Steps 3 through 7 are negotiated by someone who does this professionally, not once every three years.
Riches Rides handles the full process from vehicle search to home delivery. Call (424) 242-9442 or contact us online.
We pride ourselves on our customer service and the quality of our work. Our staff, from the person who greets you on the phone, to the professional that delivers your next new “Ride”, are perfectionists that treat every car as if it were their own. The professionalism of our organization and staff will give you unprecedented service, treatment, and peace of mind when you need to purchase or lease a vehicle.
