| Car
Buying Tips
By Heather Hales, associate editor
Finances
You
have decided that you are ready to buy a car, but you are not sure
which car is for you (knowing that your dream car is probably out
of financial reach for you, you must pick an alternative).
Your first step in the car buying process will be to determine your
finances. Review your budget, how much money can you use for
a down payment, how much can you afford each month in payments...don't
forget to evaluate the changes in your monthly insurance premium
too. Don't give yourself lee-way, be firm about what you can
afford, this will help you when the dealer tries to tempt you.
Car
Research
Now that you know what you can afford it is time to head to your
library to check out the most recent issue of Consumer Reports for
vehicles, usually comes out each April (this will be in the Periodicals
section). Consumer reports is an excellent source of car evaluations,
everything from looks to gas mileage. Find a car that fits
your budget and that meets the needs (not the wants)
of your family. Make a list of a few different cars that you
are interested in, you do not have to narrow it down to one, the
more cars you test drive the better you will be able to select the
car you really want.
Cost
Calculating the dealers price
before you begin serious car shopping is a big help. First,
you want to find out the MSRP (manufacturers suggested retail price)
for the vehicle you intend to purchase (can usually be found in
April's Consumer Reports). Second, look for the "Factor"
for each car, this should also be listed in Consumer Reports (or
Edmunds specialty "auto" books). The factor will
be a fraction, say .85, it is typical to be between .80 and .90,
the factor will vary depending on options, the car might be .85
but the options might be .86. What do all these numbers mean
for you? A factor of .85 means that the dealer bought the
car for 15% less than the MSRP. When you car shop at a dealership
know what the factors are for the cars you want and know the MSRP.
If a dealer bought the Honda Accord you want at .90 (10% below MSRP)
making him an offer of 15% below MSRP means you won't be taken seriously.
Test Drive and Car Inspection
Before you test drive make sure that the dealer has the car you
want (that means color and all options). Here are some tips
for behavior and what to look for:
-
Be aloof and neutral during the
test drive.
-
Are the controls useable and easy
to read?
-
Is there adequate room in the
backseat for the number of car seats you family requires?
-
Does the car start easily, turn
the engine on and off a few times.
-
Does the car maneuver well at
low speeds (getting out of the parking lot)?
-
What is the turning radius, can
you make an easy U-turn?
-
Is there enough acceleration to
fit into traffic, going up a hill or merging onto the freeway?
-
Is the car so big it feels like
a land yacht or so small you feel vulnerable?
-
Does the car under or over steer
at higher speeds.
-
If the car is an automatic does
the engine shift smoothly or does it "Rev" high (watch
the RPM gauge 2.5 is good for the freeway)?
-
If the car is a manual transmission,
can you easily get the clutch in, can you shift smoothly and
comfortably?
-
Is the car engine quiet when stopped?
-
How is the visibility in all directions?
-
Can you easily reach all the features,
radio, lights, windshield wipers, temperature controls, dash
etc.
-
Will the vehicle fit in your garage?
-
Do both front seats recline?
-
If you or your husband change
your own oil, is the motor set up for easy servicing?
-
Are the oil, water, coolant, power
steering fluid all marked and easily accessible?
Dealer Tactics
So you've driven the cars, managed your
finances and done your homework; you are ready to play hard ball
with the dealer. First step is to remain calm and collected,
let the dealer talk his talk to you first, this will give you an
idea of the kind of person you are dealing with. Don't be
fooled when the dealer tells you that he can get you lower payments
to get you into a car, that usually means a higher down payment
and a longer payment period (60 months as opposed to 36).
Negotiation takes knowledge, the more you know the better you are
at the game. Remembering you homework on factors and MSRP
will help you to make a fair offer on the car you want. Do
not let yourself be bullied into something you are not comfortable
with. If you sense that this dealer will not sell you the
car you want at a price you want, maybe its time to go somewhere
else don't waste your time arguing if you really sense that you
are getting nowhere.
Five common reasons for purchasing a new car:
-
I don't want to buy someone else's
problem. **A used car is not always someone else's "trouble".
Do you always buy a "new" car because your old car
is a "problem", sometimes you need a change, or maybe
you are selling the kids car because they went off to college,
there are lots of reasons for selling used cars, "problems"
is not always the reason.
-
When I buy a new car the dealer
takes care of everything, I don't have to do any leg work.
**True, but you are going to pay a pretty penny to have someone
else do the work for you.
-
I want a warranty on my car, and
I can only get that with a new car. ** Not true, most
used car dealers will offer warranty's with pre-owned vehicles.
-
New cars are better than used
and I deserve the best. **New cars are better mechanically,
but what about buying a brand new Toyota Corolla for $18,000,
or a pre-owned Honda Accord with 15,000 miles for $18,500.
The Accord is the better car.
-
I want the bragging rights that
come with a new car. **Are you really willing to pay 65%
more than you would for a used car just so you can brag?
Two common reasons for purchasing a used car:
-
Used cars are cheaper and money
is the biggest factor for me, I want the most for my money.
-
A car can lose up to 50%
of its value after the first year, and in another 4 years it
can lose as much as 25% of its value.
Here are some internet sites that can help
you when researching and buying a car.
Tips for women
buyer and seller:
-
When buying from a private party
or selling by yourself ask one of your home teachers (or other
male friend) to accompany you on the test drive, its not good
to be alone with a male seller or buyer as it puts you in a
vulnerable position.
-
Women have a tendency to want
to be nice to everyone, which will make negotiations difficult.
Keep in mind that you may never see this seller again, who cares
if he/she likes you or not!
-
People will try and take advantage
of women because they assume women know nothing about cars.
Do your homework before you go shopping, know what engine features
the car you want has.
Websites for
women buyers:
Good Luck with your car shopping and
don't forget your homework. If you have any tips that you
would like to share with our readers, just
email me! |
