This post may contain affiliate links, which means we may receive commission, at no additional cost to you, if you make a purchase through these links. See our full disclosure here.
The vehicle purchasing process from a dealership typically involves several key steps, each just as important of the last. Buying a vehicle from a dealership should be fairly streamlined with little variation between dealers. We’ve outlined the process so you can walk in with an idea of what you can expect when buying a vehicle from the dealership!
Research and Preparation
- Research: Determine the type of vehicle that fits your needs, considering factors such as make, model, features, and budget. For example, if you have a family of four, a 2025 Ford Mustang probably isn’t a great fit.
- Budgeting: Establish your budget, including considerations for financing options, insurance costs, and ongoing expenses. Typically, a car payment shouldn’t be more than 10% to 15% of your monthly take-home pay.
- Pre-Approval: If financing, get pre-approved for a loan to understand your purchasing power and interest rates. It also sets a boundary for dealerships and keeps you from overspending.
Visit the Dealership
- Test Drive: Schedule and take a test drive of the vehicle(s) you are interested in to assess performance, comfort, and features. Make sure to keep an eye and ear open for signs of any potential issues, like rattling or thumping.
- Consultation: Meet with a sales representative who can provide detailed information about the vehicle and discuss pricing, incentives, and available options. Many manufacturers offer incentives specific to year and model. Explore all of your options before signing a purchase agreement!
Negotiation and Purchase Agreement
- Price Negotiation: Negotiate the vehicle price based on your research and market conditions. Be prepared to discuss trade-ins, incentives, and any dealer add-ons. Depending on locality, trading in your vehicle as part of the deal on a new vehicle can reduce the price of the vehicle, thus reducing the taxes you pay as well.
- Purchase Agreement: Review and sign a purchase agreement outlining the final price, financing terms (if applicable), and any additional agreements or warranties.
Finalizing Financing
- Financing Options: Choose between dealer financing and your pre-approved loan. Review and sign the financing paperwork, including disclosures and loan terms. Many manufacturers offer in-house financing that allows buyers to take advantage of any incentives that may be available.
- Reminder to Stick to Your Budget: Some sales staff will try to breakdown the vehicle’s price by monthly cost as opposed to the total price of the vehicle. In many cases, they may insist on drawing the loan out in order to lower your payment. In reality, you’ll end up paying more money due to the interest from the amount financed over the course of the loan. Unless there’s a manufacturer incentive for an extremely low rate, long-term loans, like 60- and 72-month terms, aren’t worth it.
Vehicle Delivery
- Paperwork Completion: Complete any remaining paperwork, including vehicle registration, title transfer, and insurance documentation.
- Vehicle Inspection: Conduct a final inspection of the vehicle to ensure it meets your expectations and any agreed-upon conditions outlined in the purchase agreement.
- Delivery: Take possession of the vehicle, familiarize yourself with its features, and ask any remaining questions before leaving the dealership.
Post-Purchase Follow-Up
- Feedback: Provide feedback to the dealership about your purchasing experience, no matter if you had a good or bad experience. Sharing your experience can help other potential customers feel confident or wary about shopping at that dealership.
- Maintenance Schedule: Review the vehicle’s maintenance schedule and warranty information provided by the dealership. In many cases, you can find this information online via the manufacturer as well.
Buying a Vehicle From a Dealership
Throughout the process, clear communication with the dealership staff is essential to address any questions or concerns you may have. Being well-prepared and informed helps ensure a successful and satisfying vehicle purchase experience. At the end of the day, buying a new vehicle is a major financial decision. Do your due diligence and walk in with an idea of what you want and make your intentions clear to the salesperson!
