Chapter 4. New Car Buying Checklists
Now get ready for the exhilarating thrill ride of car shopping! Buckle up, because we're about to embark on a journey that's part treasure hunt, part rollercoaster, and all-aroun adventure. With your budget whipped into shape and knowing at least roughly what you need, it's time to roll up your sleeves and dive headfirst into the wild world of research!
The purpose of this section is to gather all the information you'll need to begin shopping and making the deal for a new car. All of the checklists and worksheets can be downloaded as a Zip file in PDF format, or edited online with Google Sheets.
Main Checklist
1. After completing the Set Your Needs and Monthly Budget worksheets covered in Chapters 1 and 2. Get Deal Tracker worksheets where you'll track all the relevant information during your searches for easy comparison and planning.
2. Research and choose body types, makes, and models using the sites in Chapter 8 - Website Directory, based on your Set Your Needs worksheet. Also explore manufacturer's websites to fully understand the models, features, benefits, options, MSRPs, special promotions, etc. Enter all relevant information in your Deal Tracker worksheets.
3. Read reviews and ratings on Consumer Reports and/or search online for a year, make, and model, e.g. "2024 Toyota Camry reviews". You'll find plenty of up-to-date expert reviews, ratings, and videos as well as consumer opinions and experiences. Also check for recalls and investigations at the NHTSA.
4. Get the typical asking prices and prices that others are paying by checking several of the top websites listed in Chapter 8 - Website Directory. Enter them into the Value Range field in your Deal Tracker worksheets.
5. Get dealer invoice prices and enter them into the Deal Tracker worksheets. The invoice price is the price that the manufacturer charges the dealer, but it may not indicate what the dealer's profit may be as there are often incentives and dealer holdbacks. Several of the sites listed in Chapter 8 - Website Directory provide estimated invoice prices, including CarsDirect, Consumer Reports, Edmunds, Invoice-Pricing, and J.D. Power.
6. Determine a price range that is fair and you're willing to pay. A general rule of thumb, unless the car is in short supply or is very popular, is between the dealer Invoice price and the MSRP—as close the the invoice price as you can get. 7 to 12% off MSRP is another good rule of thumb. Depending on varying factors such as sales cycle timing and oversupply, you can get prices under the dealer invoice.
7. Identify the franchised dealerships in your region for the makes and models in which you're interested, and use separate Deal Tracker worksheets for each one. Search further than you would like to travel as distant dealerships may offer the best deals, and getting bids from them may help get better pricing from local dealers. Targeting all dealers within a 100 mile radius would be good.
8. Check insurance rates using recommendations in the Insurance section in Chapter 2 - Set Your Budget, This step is very important as insurance rates on a new car, especially electric-powered ones, can be much higher than expected.
9. Apply for pre-approved financing before heading to dealerships to gain valuable negotiating power, and make it easy to decide whether to use the dealer's financing options. See the Financing section in Chapter 2 - Set Your Budget for guidance.
10. Check the value of your trade-in. If you plan to or are considering a trade-in, it would be very useful to know its value range in advance. Keep in mind that market conditions, the vehicle type, condition, its demand level, plus any improvements needed to make the car saleable will affect the dealer's offer. The top places to get value ranges are:
- CARFAX will give you estimated value ranges for trade-in and private party sales, plus an option to request cash offers from local dealers.
- Edmunds will give you estimated value ranges for trade-in, private party, and dealer retail sales. They may also provide an offer from CarMax to buy the vehicle outright. FYI, CarMax owns Edmunds.
- Kelley Blue Book will give you estimated value ranges for trade-in and private party sales, plus an option to get an instant cash offer. They also have a Private Seller Exchange, enabling you to sell via Autotrader.com. FYI, Autotrader and Kelley Blue Book are owned by the same parent company.
11. After completing your research and Deal Tracker worksheets with preferred makes and models, it's time to decide:
- If you are sure about the cars you selected and are ready to get price quotes and visit dealerships with the intent to purchase, go to Chapter 6 - Making The Deal.
- If you are not sure which of the cars you selected are right for you, visit or schedule test drives with a few of the nearby target dealers.
- All of the checklists and worksheets can be downloaded as a Zip file, or just click the Google Sheets link to open, edit, and bookmark in your browser.
- Ask the questions in the Initial Questions checklist
- Use a Test Drive checklist
- If an electric vehicle, also get the Test Drive checklist - EV Addendum
- Go to Chapter 6 - Making The Deal
