What Every Client Should Know Before Buying A New Car

new car insurance

Photo from Robert Batina

It’s always a good idea to make sure your insurance customers have the necessary information to make wise financial decisions. While you’re certainly not required to look out for their best interests beyond insurance products, it never hurts going beyond the call of duty and making sure they have the tools and knowledge to navigate life while keeping their costs as low as possible. They’ll appreciate you for it, and it’s that extra bit of customer service that can keep them from shopping around once they’re signed up. With that said, one related area of life that you can help with, is buying a new car. If you know that a customer is about to take this step, here are some helpful tips that you can share with them.

One: Research The Cost Of Insurance

If they were buying a used car, then you would want to refer them to Kelley Blue Book or Edmunds for help with negotiating a price, but with new cars that’s not as important. Still, it would behoove your customer to check with you before signing a contract. Why? Because you can give them an idea of what their payment will be after insurance rates are applied. Encourage your new car shoppers to let you run a few quotes before buying, so they can make the most informed decision regarding their purchase.

Two: Shop At Multiple Dealers

Many of your customers could be in danger of paying too much. If they have limited experience, then they may make the mistake of thinking there’s no wiggle room on a new car price. Inform them that they should be shopping at multiple dealers throughout the area. Only by playing each against the other will they be able to negotiate the final sale price downward.

Three: Stay Mum On Resources

Far too many new car buyers show their hand prematurely. They divulge to a salesman how much of a payment they can afford along with how much down payment money they have to make the purchase, and before long, they’re maxing out on both down payment and monthly installments. Big mistake. Let your customers know that they’re under no obligation to share their resources with a dealer, and that they shouldn’t until they’ve reached a price that is agreeable.

Four: Be Rigid About What You Want

Inform your customers prior to visiting a dealer that they’ll save a lot of headaches if they have their choices narrowed down ahead of time. Once on the lot, they can then tell the salesmen exactly what they want to see and avoid the wasted time.

Five: Don’t Get Attached

When clients get too attached to one specific car, they’re going to end up paying too much. Encourage your customers to choose two or three types of cars without getting too specific. Fewer options means less in savings.

Six: Don’t Mention Your Trade-In Until After Price Negotiations

This tip comes from our friends at the Allstate Blog. In their own words: “According to the National Motorists Association, some dealers will give you a great deal on your trade-in only to make up the difference on the price of a new car. If you settle the price of the car before you trade-in your old vehicle, you may be more likely to get a great deal on both.”

In Summary

Buying a new car is a stressful time in the life of your insurance customers, but if you can be a source of support that helps them through the process, they’re going to appreciate you over the long haul. Remember: anyone can sell them an auto insurance policy, but when it comes to security, they’re looking for more than just a name and a logo. That’s why the market for agents remains strong in spite of increasing online activity. Best of luck!

Share this Article
Farmers - The Hartford - State Farm - Kemper Direct - Nationwide - Allstate - New York Life