Buying a Car?

One time or another, you probably have to buy a car. You might want it used or new…whatever your preference is, here are some tips when looking for a car.

Used:

Buying a used car is a smart idea. All cars, depreciate the most in the first 2-3 years. You could potentially be able to get a used German car for the price of a brand new American car. Try and avoid dealerships. They have benefits sure, but the fact is, they are a middleman. They purchased the car from someone else, and add their own overhead costs and profit to that price. So essentially you are paying for a car, that is not worth that value.

If you decide to buy privately, do some research too on what the average selling price is (privately and through dealerships) for that year and model of car, and based on what mileage it was clocked at. You want to make sure you are getting the best price for your car.

Lastly, do some research on cars. Do you want a hybrid, SUV, sedan, front wheel, all wheel…Buying a car should take time and research into it. You shouldn’t buy a car overnight just because you want to – unless you got money to spread. In that case, invest in me

New:

Ah, the smell of a new car, the shine, the perfection…During recession, buying something like a car is a very good time. Prices are dropping and if you need to finance it, those options are very good. Some companies offer 0% finance or something very close to it.

Once again research is very important; not just on what type of car you want, but you need to make a decision that if you want a Honda Accord, go to their website, build it, get the price and PRINT IT OUT. When you go to a dealer, they may not offer you the same price as the website, hoping they can trick you into paying more and make a better commission. So have it ready in your pocket and use that print out as leverage until you negotiate. But ALWAYS ask for a lower price. If they don’t, let them know that you want to look around, perhaps to another dealership (imply it). You never know and honestly, what have you got to lose?

Lets talk about deals. Looking on websites and newspapers, I see ads of $1500 off on a brand new 2009 car. Don’t get fooled! You do get $1500 off…only IF you pay the full payment for the car. Other companies have stipulations like you get $1500 off for front wheel drive, but can’t get that offer if you want an all wheel drive. Finally, if you have the funds, pay the full price of the vehicle instantly. If you pay cash, you get a much better deal on your car, more than the deals offered commercially.

Regardless if you are purchasing a used or new car, never go into it smelling like desperation. People can tell and will take advantage of you. If you look and act like someone who doesn’t care if you get the car or not, people are more willing to offer you a better deal – which is why take time to do research, because it means you know what you want and won’t take B.S. Time is in your hands, take advantage of it.