Buying a new car can be stressful but exciting. There are many great vehicles. Different makes and models can fit any need you have, whether it is multiple children, towing, extra space for work tools or off-road capabilities for your hobby. If you are looking to purchase a new ride soon, limit your stress by being fully prepared. Here’s what to know before you step onto the lot.

1. Know Your Budget

Car salespeople can be very persuasive once you step onto the car lot. You get to talking, and somehow, they convince you that an extra $100 per month is not unreasonable. However, that additional money could make finances even tighter each month. It is essential to know what a realistic budget is and aim to settle below that number. Remember that car insurance rates could be affected based on the make and model you choose. Search insurance quotes to get the best rate and give yourself an idea of how much you may be paying.

2. Know Your Needs

If you have a kid or expect one soon, don’t buy the two-seater as your everyday car. If you drive miles upon miles for work each month, don’t choose the gas-guzzler. Make a list of exactly what you need in a vehicle before deciding on the one you want to purchase. The number of seats, gas mileage and cargo space are vital needs that will impact your final decision.

3. Know Your Wants

It’s also important to realize what is a want versus what is a need. The extras that you want, but can live without, should also be noted. These can be a bonus if you keep your car within your dedicated budget but don’t go over your budget for unnecessary bonus features.

4. Know Your Possible Discounts

Certain dealerships offer discounts for students, new graduates, armed forces and other special groups. Research different dealers to see what sort of discounts they offer. As you negotiate prices, make sure you ask about discounts. Driving a little further to a dealership that gives you specific discounts may be well worth it.

5. Know Comparable Prices

Shop around for the best deal possible, especially when it comes to large-scale purchases. Use online car dealers for quotes. It would be best if you stopped by multiple dealerships to get quotes. Do not leave the lot that day with a new car unless you are sure that you are getting the best deal possible. You have more leverage for negotiations if you can show a lower price from another dealership. Shopping at the end of the month, when salespeople may be short for their quota, can also benefit you.

6. Know Your Interest Rate

Before going to a car lot, get preapproval for a car loan. This provides valuable insight into what acceptable interest rates are. You will not be blindsided if the dealer offers you an interest rate higher than you expected. You will also be confident that you are getting a better rate if the dealer proposes a lower rate than your preapproval rate. Watch for special deals at dealerships within a certain radius. Sometimes cars will be featured for 0% interest or low rates. This can be a great time to purchase, as you will save money on the interest.

7. Know Your Worth

If you have a trade-in, be sure to know the worth of the car. Salespeople may lowball your trade-in value. Kelley Blue Book provides estimates depending on make, model, mileage and condition. Other websites will make you an offer on your current car. You can take this offer with you to ensure the dealer is giving you what your vehicle is worth. You can also opt not to trade your car into your dealer if they do not match your other offer.

Being prepared before you step foot on a car dealership lot can help you drive away with the car you want for a price you feel good about. It is easy to get caught up in a fast-paced environment or fall for sales talk but remember that you have negotiation powers! Take it slow, and don’t be afraid to leave and say you’re going to think about it and visit a few more places before making the purchase. The more you know, the better prepared you are to make a great deal!