Car Shopping Timeline: What To Do Before Buying Your Next Car

By Keith Griffin

For most Americans, a car is the second most expensive thing they will own after a house. Yet, a vehicle is often bought on impulse with little or no research. There’s a timeline you should follow to get the best results.

Start your search six months out before you think you will need your next vehicle. Karl Brauer, senior director of insights and senior editor for Kelley Blue Book, says searching that far out instills a sense of discipline in the car-buying process. Brauer says it makes a buyer more realistic. “You’ll end up making a smarter decision,” he says, adding it’s a case of identifying your wants versus your needs. The latter is preferable, unless you’re buying a second or third vehicle, he adds, then you can act on wants.

Use that time to truly assess what your needs are in a vehicle. “A lot of it is looking at your life and figuring out what you want,” says Stephanie Brinley, senior analyst -- Americas for IHS Automotive. Are you a commuter? Do you drive mostly on the highway or around town? Are you by yourself or do you travel with lots of kids? The answers to those questions are going to determine what you need and how expensive the car is going to be.

Go online to gather information about the vehicles you’re considering. As you’re searching for the right car for you, read reviews to get a sense of what auto critics think of the vehicle. According to the J.D. Power 2014 New Autoshopper Study, new-car shoppers spend an average of 14 hours researching cars online before they buy.

If that’s too much of a time commitment, the U.S. News car rankings collect and analyze every published and credible review of a vehicle, saving you the time of visiting multiple sites and reading dozens of reviews.

George Doyle | Thinkstock

Start looking at financing about three months out. A big lead time helps you decide how much car you can afford. Brinley says starting that far out also gives you time to determine how much you want to spend in total for your vehicle. Not how much you want to spend a month, but in total, factoring in things like loan costs, maintenance and insurance.

A good benchmark would be spending no more than 20 percent of your net monthly income on a car, Brauer says. He clarifies that figure by saying that includes not only car payments but the extra costs associated with owning a car. He adds, “You need to be realistic about what your monthly budget is.”

Get its price through online research a month before test driving the car. Online research can determine the wholesale cost, manufacturer suggested retail price (MSRP) and the average transaction price for your area. Brauer advises a buyer should never enter a dealership without that information and suggests printing it out as a handy reference tool.

This pricing information will help you when it comes time to negotiate the vehicle’s price, and with the average price paid for the same vehicle in your area, you’ll know whether or not you’re getting a good deal. If you hate the thought of negotiating, U.S. News has a free Best Price Program that you can use to get guaranteed savings on the vehicle without negotiating.

Brinley also observes that new-car shopping has evolved significantly in the last five to seven years. You’re going to be surprised by how far technology has come in terms of infotainment and navigation systems, she explains. They can be more complex than you remember as well as more expensive.

She says any new car test drive should include seeing how your smartphone pairs with a vehicle. Don’t get discouraged if it doesn’t work seamlessly the first time you try a system. “I wouldn’t buy a car for an infotainment system but I wouldn’t reject it either,” Brinley says.

Wait until the Tuesday after Labor Day, according to Brauer on getting the best price, which means you have less than three months to shop for your next car if you’re currently in the market for a new one. He says you should hit a dealership about one hour before it closes when sales are typically wrapping up. “If you are more flexible and worried about getting the right price before the right features, this system will work well for you. You should end up in a pretty good negotiating position,” Brauer says, adding that deals can especially be had before the new models roll out in the fall.

Car pricing site TrueCar.com offers advice on the best time to buy a midsize sedan. It says that time is June. Over the last three years, June has proven to be the best time to buy a midsize car, with discounts averaging 8.2 percent off MSRP, based on a TrueCar analysis. Deals are especially good for midsize hybrids like the 2015 Hyundai Sonata Hybrid, Kia Optima Hybrid and Toyota Prius.

Brauer adds preparing ahead of time allows you to jump on opportunities that may come up in terms of special offers. That preparation, he says, gives you the “freedom to say, ‘I could buy next week … if I get a screaming deal.’”

As you get nearer to the time it actually comes to buy, arrange your own financing and see if the dealer can beat the rate you’ve been pre-approved for.

One thing to remember, Brinley suggests, is ultimately car shopping should be fun. “It doesn’t matter what you’re buying. Have fun with it,” she says. Doing your homework and being prepared is going to make the car buying process a lot more enjoyable.

More at U.S. News
How to Buy a Car
Buying vs. Leasing
How to Negotiate the Price of a Car