Steps to Take Before Visiting a Car Dealership: A Step-by-Step Guide for Car Buyers

Shopping for a car can be an exciting experience, but if you walk into a car dealership unprepared, it can quickly become overwhelming. Whether you’re buying a new car or a used vehicle, having a clear car-buying strategy in place can save you time, money, and potential buyer’s remorse. To make the process easier, you can start by visiting our new car buying page, where you’ll get expert support to guide you through your car purchase from start to finish.

This step-by-step guide will walk you through the essential steps to take before you visit the dealership. From setting a budget and securing car loan pre-approval to scheduling a test drive and inspecting the vehicle, we’ll cover everything you need to know to make the car buying process less stressful.

Set a Budget for Your Car Purchase

One of the most important steps in the car buying process is to set a budget before you start car shopping. It’s easy to be swayed by the bells and whistles of the latest model, but having a clear idea of the type of car you want — and how much you can afford — will keep you on track.

How to Set a Budget

Look beyond the purchase price. Be sure to read the fine print and factor in costs like CTP (Compulsory Third Party) insurance, stamp duty, registration, insurance premiums, and ongoing maintenance. Consider secured loans and compare multiple financing options to get the best interest rate.

Use the 20/4/10 rule as a guide. Ideally, you’ll make a 20% deposit, finance the car for no more than four years, and ensure that monthly payments don’t exceed 10% of your take-home pay. This will help you avoid overextending your finances.

For more guidance on how to set a budget for a car, read our post about Setting a Budget for Buying a Car: A Step-by-Step Guide to Smart Spending.

Research the New or Used Car You Want to Buy

When you’re in the market for a new car, it’s essential to know what type of car you want before you visit the dealership. Car buyers who research ahead of time are more likely to get the best possible deal.

How to Research a New Car or a Used Vehicle

Start by identifying your specific needs. Do you want a family-friendly SUV, a compact commuter car, or the latest model with all the bells and whistles? Use online automotive review sites to compare multiple models and look for features you want, such as advanced safety features or fuel efficiency.

Consider whether you want to buy a new car or a used vehicle. New wheels come with warranties and fewer concerns about wear and tear, but they also come with a higher purchase price. A used vehicle, especially one sold privately, might be cheaper but could require an inspection from a mechanic to avoid red flags.

If you’re unsure which car is best for your needs, visit the CarSauce new car buying page. The team of experts will listen to your requirements and help you find the right car at the best price.

Check for Deals, Incentives, and Promotions at Car Dealerships

Buying from a dealership has its perks, especially when dealerships offer deals and promotions. End-of-financial-year sales, holiday promotions, and manufacturer rebates can help you drive away with a great deal.

Where to Find the Best Deal on Your New Car

Check the websites of car dealerships in your area for special offers. Visit manufacturer websites as well, as they often list nationwide incentives on new car models. When you visit the dealership, ask the salesperson about promotions or trade-in bonuses if you have an existing car to offer.

For an even easier way to find the best deals, head to the CarSauce car buying page. Their team will negotiate with dealerships on your behalf to secure the best possible offer.

Get Pre-Approved for a Car Loan

Securing a car loan pre-approval before walking into a dealership is one of the smartest moves a borrower can make. This gives you control over the loan amounts and terms, ensuring you’re getting the best price for the car you want.

How to Get Pre-Approved for a Car Loan

Check your credit score, as it impacts the interest rate you’ll be offered. Apply for pre-approval through banks, credit unions, or car loan providers. When you get pre-approved, you’ll know exactly how much you can borrow, which prevents you from falling into a trap of agreeing to higher amounts and terms.

If you’re unsure where to start, you can visit the CarSauce car buying page, where their team can help you understand your financing options and get pre-approval for a car loan.

Check the Value of Your Trade-In Vehicle

If you plan to trade in your old car, it’s essential to know its market value before you head to the dealership. Dealers often aim to buy your vehicle at the lowest price, so understanding its true value can give you an edge during negotiations.

How to Find Out What Your Car is Worth

Use valuation tools from websites like Redbook or CarsGuide. You can also shop around by visiting multiple car dealerships to get a sense of what each dealer is willing to offer for your old car. Remember, just because one dealer offers less doesn’t mean you have to accept it.

If you’d prefer to avoid dealing with multiple dealerships, the CarSauce car buying page can assist you in getting a fair price for your trade-in. Their experts ensure you get the best possible value for your old car.

Schedule a Test Drive and Inspect the Vehicle

A test drive is your chance to experience how a car handles, how comfortable it feels, and whether there are any red flags. When you schedule a test drive, make sure the car is available before you visit the dealership.

What to Do During a Test Drive

Test the car on a range of road types, from city streets to highways. Look for any unusual sounds from the engine, brakes, or suspension. Check the car's comfort and visibility, and make sure you’re comfortable with how the controls function.

Pro Tip: Bring a friend or family member for a second opinion. They might notice something you missed.

Know Your Negotiation Strategy

Negotiating the purchase price of a car can be one of the most stressful parts of the buying process, but preparation is the key to success. If you’ve done your homework, you’ll know the true value of the car you’re buying and the maximum amount you’re willing to pay.

How to Approach Negotiations with a Salesperson

Start with the purchase price, not the monthly payment. This ensures you’re not misled by low monthly payments that stretch the loan term. Be ready to walk away if the dealer doesn’t meet your expectations. If you have pre-approval, let the salesperson know you have other financing options. This often encourages them to offer better terms.

If negotiating directly with dealerships sounds too stressful, use our new car buying page. Our  experts will handle the negotiations for you, saving you time, money, and unnecessary pressure.

Research Car Dealership Reviews Before You Go

Not all car dealerships offer the same experience. Some provide excellent customer service, while others might pressure you into decisions you’re not ready to make.

Where to Check Reviews

Google Reviews, Facebook groups, and car-buying forums are excellent places to find honest reviews from other car buyers. Look at the dealership’s history of resolving complaints, as this can be a good indicator of how they’ll treat you.

Bring the Necessary Paperwork

When it comes time to finalise the purchase, you’ll need to have specific documents ready. Having them on hand can speed up the process and prevent unnecessary delays.

What You’ll Need to Buy a Car

• Driver’s licence (for ID)
• Proof of insurance (you’ll need it before you can drive away)
• Proof of income (for financing applications)
• Trade-in documents (if you’re trading in an old car)
• Car loan pre-approval letter (to prove your purchasing power)

Ask Questions About the Car Before You Finalise the Deal

Whether you’re buying new or used, make sure to ask the salesperson specific questions about the car. This ensures you know exactly what you’re getting before you commit.

Questions to Ask Before You Purchase a Car

• Is this the final “drive away” price, or are there any additional fees?
• Can I see the warranty details?
• Can I test-drive it on different road types?
• Has the vehicle been inspected by a mechanic?

Final Thoughts

Buying from a dealership is a major financial decision, but if you follow these important steps, you’ll have the confidence to secure the best deal possible.

If you want to make sure you’re ready for your next car purchase, visit the new car buying page. Our expert team will guide you through the entire new car buying process — from finding the right car to negotiating the best deal — all while saving you time and money.