BBB’s Checklist for Buying a New Car

Do the Legwork Before Visiting the Showroom to Save Money and Avoid Stress
July 06, 2014

Car KeysA new vehicle is one of the most important big ticket items on a consumer’s shopping list, and Connecticut Better Business Bureau says preparation can reduce the stress associated with financing and searching for the perfect car, truck or motorcycle.

There are many available choices and factors to take into account, and much of the legwork can be done before heading out to the showroom.

Here are some things you’ll want to take into consideration if you’re in the market for a new vehicle:

Determine your budget - This sounds straightforward, but there’s more to budgeting a new car purchase than just the monthly payment itself.  How good is the vehicle’s fuel efficiency?  Remember that your results may vary from EPA mileage estimates.  The website is a good resource for ‘real-world’ mileage data reported by car owners.

How much will insurance cost on the vehicle?  Contact your insurance agent for quotes on various models you may be considering.  How much will maintenance and repairs cost?   Online reliability reports can give you a sense of which models are more expensive to repair.

When considering monthly payments, use online calculators to see how different rates, down payments and loan terms can impact your payment.

Look at the big picture - Don’t become so focused on the monthly payment that you lose sight of the purchase price or total cost over the term of the loan.  Extending a loan from 60 months to 72 months for lower payments can translate into additional thousands of dollars over the life of the loan.

Explore financing options - Visit your local credit union or bank to see what interest rate they can offer, and consider getting pre-approved for a loan.  Having this information (or an offer) in hand will allow you to decide whether dealer financing is the best option for you, and gives the dealer a ‘target’ to match or beat.

Comparison shop online - You can get a price quote on a vehicle from most dealerships in a matter of hours, and then compare competing offers.

Websites such as provide free information on what you can expect to pay for a particular model in your region, and can help you determine the value of your trade-in.

Look for rebates - Many rebates are available, but some carry eligibility requirements that should be disclosed in advertising, such as loyalty bonuses, active duty military, trade-in bonuses, etc.  Make sure you understand these qualifications to avoid disappointment.

Understand leasing options - If you decide to lease a vehicle, make sure you’re clear on the terms of the lease, and the pros and cons as opposed to purchasing.  Leasing can mean driving a nicer car at a lower monthly payment than might be possible with a purchase, but if you drive more than about 12,000 miles a year or are concerned about “excess wear and tear” charges, leasing may not be the best option.

What’s the bottom line?  When looking at the price of a vehicle, remember that you will also pay fees for documentation, title and registration, along with applicable sales tax.

Visit to obtain reports on individual dealerships to look for any pattern of complaints and how they responded to them.

Founded in 1928, BBB Serving Connecticut is an unbiased, non-profit organization that sets and upholds high standards for fair and honest business behavior, and is one of 112 local, independent BBBs across North America.

For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust.  In 2013, people turned to BBB more than 132 million times for BBB Business Reviews on more than 4.5 million businesses and Charity Reports on 11,000 charities, all available for free at