The sheer variety of vehicles available from so many manufacturers can easily overwhelm an unprepared shopper. Below, we tackle as many of the issues, in as much detail as we think you can stand!
• How much car do you really need?
• Budget early
• Research insurance costs
• Color and trim
• Lease or buy?
• Choosing a dealer
• Negotiating
• Saving money
• Negotiating psychology
• Financing and contracts
How much car do you really need?
Before making the first look at a web site or trip to a dealer, you should determine what kind of car you need, now and in the future. Obviously, if you have a family of four and are shopping for the family’s only car, you must consider only cars which seat at least four people and have adequate luggage space. And if you are carefree single with no immediate plans for a family, a two-seater sports car may be just the thing. But you must also consider the next few years and make sure that your future needs won’t make your new car impractical. You must plan to drive this new car for several years, and if you have to trade it in early because your new family will not fit in it, you’ll probably take a financial beating.
Budget early
The field of available cars will also be narrowed considerably by price. You should determine just how much you can realistically afford to pay, and do not exceed that amount no matter how much you like a specific car. Remember to include the cost of insurance, gasoline, and maintenance when budgeting. Also, remember that your budget can change drastically because of various factors, for example the loss of a spouse’s job. Always plan for the worst case, now and in the future.
Research insurance costs
Once you have a reasonable idea of what kind of car you are looking for, research consumer and auto web sites, and talk to friends to get specific recommendations. The road tests and evaluations by automotive professionals can be invaluable in separating the better cars and values from the rest of the pack. Especially valuable are the tests performed over thousands of miles, giving a good idea of the car’s durability and maintenance needs. Some magazines also rate used cars and provide information on the likelihood of problems in specific systems on each car.
Somewhere during the shopping process, you will narrow the field to a few specific cars. At that time, check with an online insurance agent to compare the cost of insuring each particular car. Two cars may be comparable in price, features, size, and desirability, but vary considerably in insurance cost. This may be because one costs much more to repair or is more likely to be stolen or vandalized. After getting the rates from your agent, use them to compare the true cost of driving the different cars under consideration–and plug those rates into your budget.
At this point, the buying process gets more specialized depending upon whether you are buying a new car or a used car. Let’s talk about getting the best deal on a new car, but most of this information will be helpful when dealing for a used car, too.
Color and trim
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Assuming that you have already narrowed your choices down to a select few, it’s time to get into specifics about such things as color and options. Here, you must remember that you will probably not drive this car for the rest of your life, so you must consider resale value when making choices. For example, at the time you are shopping, purple cars may be all the rage. But, a few years from now, when it’s time to trade in or sell the car, a purple car may be impossible to unload because the faddish color is not longer fashionable. For that reason, you would be wise to stick to colors and trim packages that are perennially popular. Optional equipment also will affect the resale value of your car. You should make sure that you buy the commonly desired options, even if you don’t really need them. For example, in certain parts of the country, many people don’t buy air conditioning in their cars because the local climate doesn’t require it. That’s fine for civilians who will probably be trading or reselling the car in the same area. However, if you intend to move around, you have no idea where you’ll be when the time comes to trade or sell, and you’ll never unload a car with no air conditioning in the South! On the other hand, some options may add no resale value or may actually detract from it. Luckily, the manufacturers have made more and more equipment standard over the years, so it’s easier to buy a complete package with less hassle.
Lease or buy?
Also, you’ll have to choose between leasing and purchasing. Leasing has grown by leaps and bounds since cars became so expensive. Many people have found that they can lease a nicer car than they can purchase, and the manufacturers obviously love it because they can move more higher-priced cars. But a lease should only be considered by those people who insist on having a new car every few years and who don’t put lots of miles on their cars.
Choosing a dealer
You not only must choose a specific group of cars to look at, you must also choose which dealers to shop at. Of course, your choices are somewhat limited (you won’t have much luck trying to buy a Ford from a Chevrolet dealer), but there are usually multiple dealers for most makes within driving distance. You may wish to research specific dealers through the Better Business Bureau or by obtaining Customer Service Index ratings from the manufacturers. If you have a particular car in mind, get several quotes from free online services, which will have a nearby dealer contact you in a day or two. Remember that driving off the lot with your new car is not the end of your relationship with the dealer. You’ll probably rely on the dealer for service, parts, and possibly another car, so choose a dealer for more reasons than just a good price. Ask your friends and others who have been in the area for their recommendations. Remember that some people just can’t be pleased, so don’t let their criticism sour you on a dealer with an otherwise good reputation. Don’t be afraid to ask questions at the dealership as well. How long has the service manager been there? Have the technicians been there awhile, or do they tend to come and go frequently? Do the people who work there seem happy with their jobs? Of course, price and selection will still be major factors, but service and satisfaction will become more important the longer you own the car.
Tagged with: car records • dealership
Filed under: Buy A Car