So, I just spent a week with a friend as she was preparing to buy a car. And, I have to say, it was actually a (gasp) pleasant experience.
I know that buying a car tends to rank up there along with "death in a family" in terms of stressors, but it really doesn't have to be that way. Here are some of the top tips I shared with my friend as I helped guide her through the purchase of her navy blue 2010 Nissan Altima:
1. Do your research. The first trip you should make is to your computer. You probably have an idea in your head about how much you want to spend on a car, whether it's $15,000 or $100,000. Go to a website like Consumer Guide where you can search for cars by price range, and narrow down your options to around 5 cars. Then, you should go to websites like JD Power, where you can check consumer satisfaction and reliability ratings, and the Insurance Institute for Highway Safety, where you can get crash test ratings, for your options.
2. Know how much you can afford each month, and work backwards. You may think you know what you can afford, but when you plug in the numbers to a payment calculator, you may be in store for a rude awakening. For example, if you are going to finance $26,000 for 60 months at 1.9% interest (which is pretty popular right now), your monthly payment is going to be $454.59. Perhaps not quite what you'd expect. So, plug in the numbers, play with down payments and loan term options, and get a good idea of where you need to be.
3. If there's an auto show in town, head there first. As I recently discovered with my friend, just because you like the safety ratings and features offered on a car, it still might not be the right car for you. On paper, she looooooved the Subaru Legacy. It had everything she wanted including AWD and the right price. But, the instant she sat in it, she hated it. It just wasn't comfortable for her height and petite frame. And no matter how much she wanted to like it, she just didn't. If you can see all the cars you might like in one place, you could narrow down the field even more and save yourself some drive time going from dealership to dealership.
4. Take it for a test drive. OK, you know what you can afford, and you've narrowed down the field. Now, go to a website like Drive Chicago,
find a dealer that's close to you and head out for a test drive. This
is the make or break time that will help you narrow the field further.
How does it handle? Can you see properly out all the windows? What
about blind spots? What about interior quietness? What about engine
noise? Are there any features in the car that will be annoying to you
in the long run (like the loud blinker in the Mercury Milan or the
ill-placed cup holders in the Lexus IS)?
5. Now take it for a really long test drive. So,
you've got those one or two cars that you think you might want to buy.
And, for 10 minutes, you really loved it. But, can you live with it?
It's only after you've had the car in your home and in your life that
you really know. Where do you put your purse? How do the car
seats fit? Does the trunk or rear cargo area have enough usable storage
space? Some dealers might offer extended test drives, and I absolutely
recommend this if possible. If not, rent it. Sure it might cost you an
extra $80, but it's so worth it to avoid several years of annoyances.
6. Talk terms, and take 24 hours.
You've found THE car. Now it's time to talk turkey. What is it really
going to cost you? The sticker says $20,599. But is that really what
you're going to pay? No. First, there are usually rebates and
incentives on any given car. The Sunday auto section in your local
paper often lists these, so check them out and know what's being
offered. Then, go back to a site like Consumer Guide
and know what the invoice price of the car and the options are. Add it
all up, and I typically advise people to negotiate a price that sits
between invoice and sticker price. But that's still not what you're
going to pay. There are a bevy of license, dealer, title, document,
etc., fees that you have to account for and will add thousands of
dollars to the final price. Make sure you have your sales person list
out what all these fees are, get your final tally and go home and sleep
on it.
7. Understand what you're spending money on.
First there are taxes (9.25% in Cook County, Ill.), then there are
document fees, CVR fees, license plate fees, title fees, etc. Have your
sales person tell you the amount for each of these fees and have them
explain exactly what it covers.
8. Look at all the financing options.
It is better for you to take $2,500 cash back or to finance at 1.9% for
60 months? Insist that your sales person work it out both ways and show
you the results. Also, look at what your monthly payments will be with
no down payment or trade in and then with varying degrees of down
payments and trade ins. Know all your options before you commit to one
that you're happiest with.
9. Be prepared to walk away. Seriously. People
can get very emotionally attached to a car during the purchase process.
It's exactly the right shade of blue and has all the right options.
It's exactly what you dreamed of. It's perfect. BUT if you can't get a
good price and pay exactly what you can afford to pay, walk away. You
don't want to be talked into extra options or a higher payment than you
can afford. It may be tough, but if you don't get exactly what you want
(and nothing more!) for exactly the price you can pay, walk away.
10. Go with your gut.
If the purchase process doesn't feel right for any reason, then it's
not right. Perhaps the salesman is trying to upsell you on something
you don't want. Or maybe they seem like they're doing something shifty.
If you're not completely comfortable with the dealership or the person
selling you the car, don't do it. You're probably going back to that
dealership for service if you buy that car, and if you're not
comfortable now, you really won't be when they tell you that you need
$2,300 worth of work done on your year-old car.
Throughout the car buying process, knowledge is power. So, be sure to
know what you want and stick to your guns. That will make your car
buying experience if not pleasant then at least tolerable. And you'll
walk away happy with the car you want.
Filed under: News you can use
Tags: car buying, chicago auto show, dealership
What an excellent article. I especially like the suggestion to walk away from the deal.
http://financingacar.org
too many people view buying a car as a "competition" of sorts, and they have to "win" at all costs. if you are willing to walk away if the deal or the feeling about the deal isn't right, you still win.
I did just that, I walked away and thought about it for a week and then went back and they made me an even better deal to buy. It really does pay, hopefully the car you want will still be there! Mine was.
Some good info! the best thing that helped me was to buy a car with all the information on how a car deal was contsructed and how car dealers operate. There is al ot of good info on the internet http://www.hoopdi.com was the best source.