Top 10 Tips for Buying a New Car in 2025

Buying a new car is exciting, but it can also be a bit daunting. Prices, models, financing options – there’s a lot to consider. Whether you’re in Denver, Colorado or anywhere in the country, these 10 essential tips will help you navigate the new car buying process with confidence. From planning your budget to closing the deal, we’ve got you covered:

Set a Realistic Budget:

Before you fall in love with a shiny new vehicle, figure out what you can afford. A good rule of thumb is that your monthly car payment (if financing) should be no more than 10-15% of your take-home pay. Don’t forget to factor in insurance, fuel, and maintenance costs. Also decide how much you can put down upfront. Setting a clear budget early will narrow your search to cars in your price range. (Tip: If you’re planning to finance, get a pre-approval from your bank or credit union to understand your loan terms and limit.)

Do Thorough Research:

Knowledge is power in car buying. Research different makes and models that meet your needs (SUV vs. sedan, gas vs. hybrid, etc.). Read reviews and reliability ratings from sources like Edmunds, Consumer Reports, or automotive forums. Compare features, safety ratings, and long-term costs. The majority of buyers now do extensive online research – over 90% of car shoppers go online before ever visiting a dealer. Use that to your advantage: know the pros and cons of the models you’re interested in.

Compare Prices and Deals:

Once you’ve narrowed down a few models, compare prices from multiple dealerships. Look up the MSRP (sticker price) and the invoice price (what dealers roughly pay the manufacturer) for the car. Websites like Kelley Blue Book or TrueCar can provide market pricing. Also search for any factory incentives or rebates on the model (common around holiday sales or model year-end). If you’re open to it, consider getting quotes from dealerships outside your city – sometimes a short drive to a neighboring town or state can save you money if they have the car priced lower.

Time Your Purchase (If Possible):

Timing isn’t everything, but it can make a difference in price. Dealerships often give better deals at the end of the month or quarter when sales staff are trying to meet quotas. The end of the calendar year (October–December) is traditionally a strong time for bargains on current-year models, as dealers want to clear out inventory. Even the day of the week matters – Mondays tend to be quieter at dealerships, meaning salespeople can spend more time with you and might be more willing to negotiate. If you have the luxury of time, plan your shopping during these windows. (However, if your current car dies or you have an urgent need, don’t feel you must wait for a certain month – the best time to buy is ultimately when you need a car and have done your homework.)

Consider Buying vs. Leasing:

Decide early on whether you want to buy (finance) or lease your new car (see our detailed guide on this below). Buying with a loan means eventually owning the car outright, while leasing generally gives you lower monthly payments but you won’t own the car at the end of the lease term. Your decision might depend on how many miles you drive, how often you want a new car, and whether the car is for personal or business use. High-end car buyers, for example, sometimes prefer leasing to enjoy the latest models every few years, whereas others prefer the long-term value of ownership. Make sure you run the numbers for both options and choose what fits your lifestyle.

Get Pre-Approved Financing:

If you’re not paying cash, shop around for a car loan before you go to the dealership. Check with your bank or credit union for pre-approval at a good interest rate. This does two things: (a) it sets a hard upper limit on what you can spend, and (b) it protects you from overpriced dealership financing. Keep in mind that dealerships often mark up the interest rate on loans they arrange – in fact, about 78% of dealer-arranged loans have higher interest than the buy rate, with an average markup of over 1 percentage point. In other words, if you qualify for a 5% rate, the dealer might quietly offer 6% and take the extra as profit. By having your own financing or knowing your rate, you can avoid or negotiate down these markups. You can still let the dealership try to beat your pre-approved rate, but you’ll have a baseline to compare. (Pro tip: Also check your credit report and score before applying for loans – better credit scores get better rates. If your score needs work and you have time, improving it could save you a lot in interest.)

Plan Your Visit – and Take Your Time:

When you’re ready to visit a dealership for a test drive, plan to go at a low-stress time. Avoid the busiest times (weekend afternoons) if you can; instead, a weekday morning might get you more personal attention. When you’re there, take your time with the car. Inspect it thoroughly and take a test drive on various road types (city streets, highway, maybe a hill if possible). New car excitement can be intoxicating, but stay focused: ensure the car meets your expectations in comfort, visibility, tech features, and driving feel. If anything concerns you, don’t be afraid to ask questions or request another vehicle to test if available. You’re making a big purchase, so you have every right to be thorough.

Negotiate Effectively:

Negotiation is the part that many buyers dread, but going in prepared will boost your confidence. Remember that everything is negotiable: the vehicle price, your trade-in value, interest rate, and any dealer-added fees or add-ons. Here are some negotiation tips:

• Negotiate the purchase price first, before discussing financing, trade-in, or monthly payments. Dealers sometimes try to mix these figures to confuse the deal. Keep them separate to see the real cost.

• Use your research: If you know the invoice price or that a nearby dealer offered a lower price, politely mention it and ask if they can beat it.

• Focus on “out-the-door” price (total with taxes and fees). A common trick is to agree on a price, then add $500 in doc fees or other extras last-minute. Be clear that your offer is for the total drive-out price.

• Be prepared to walk away if you’re not comfortable. There are plenty of cars out there. Sometimes walking away (or the mere threat of it) is the strongest negotiating move, and it’s completely within your rights. Don’t let the fear of “losing” a car push you into a bad deal – chances are the deal will improve if you stand up, or you’ll find a better one elsewhere soon.

Also, consider bringing an ally: using an auto broker to negotiate for you can relieve you of this stress entirely. Brokers are professional negotiators who deal with dealers daily and know all the tactics. They can often secure a better price than the average buyer because the dealership knows they can’t be fooled by typical tricks. If negotiation isn’t your forte, a broker can be your secret weapon.

Beware of Add-Ons and Upsells:

After you’ve agreed on a price, the dealership will likely usher you into the finance office to sign paperwork. Here, you’ll often be pitched various add-ons: extended warranties, service plans, GAP insurance, paint protection, VIN etching, and so on. Many of these products are high-profit items for the dealer – by 2024, nearly 73% of a dealership’s profit came from finance & insurance add-ons, not the car itself. Some add-ons may be useful, but many you won’t need or can get cheaper elsewhere. Our advice: scrutinize each offer carefully. Don’t be afraid to say no – repeatedly if necessary. For example, if you’re buying a brand-new car known for reliability, an expensive extended warranty might be unnecessary. If you decide you do want an add-on (say, GAP insurance for a low down payment loan), you can often purchase it later or through your own insurance for less. A good tactic is to handle one decision at a time: get the car deal done first, then evaluate add-ons without pressure. Remember, you are in control at this stage – it’s okay to take a pause or even a day to think over any extras. And yes, an auto broker can also help here: brokers often advise clients on which add-ons are worthwhile and which to skip, ensuring you don’t pay for overpriced products you don’t need.

Finalize the Deal and Enjoy:

Before signing the final contract, review all figures to ensure they match what you agreed on. Double-check that any promises (like fixing an issue or including floor mats) are written in the contract. Verify the financing details, the amount financed, interest rate, loan term, and monthly payment. Once all looks good – sign and celebrate! Make sure you get copies of all paperwork (purchase agreement, MSRP sticker, loan documents, title/registration papers, etc.). If buying in Colorado, you’ll get a temporary tag; your official plates will come later after registration. Now the fun part: enjoy your new car! Take a photo with it, share it (we know you want to), and acquaint yourself with all its features. Pro Tip: New cars often come with free trials (for satellite radio, connected services, etc.). Note their activation and expiration dates so you can decide whether to continue or cancel those services.

In summary, buying a new car in 2025 (or any time) is all about preparation and savvy decision-making. By following these tips – budgeting, researching, timing, negotiating, and knowing when to seek expert help – you’ll be well on your way to a great deal and a car you’ll love for years. And remember, if you ever feel overwhelmed, WM Auto Brokers is here to assist at any step, whether it’s just giving advice or handling the entire purchase process for you.