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Car Buying Guide and Tips
at Emergencybrake.com
Principle #1: Reseraching
Principle #2: Choosing a Car
Principle #3: Advanced Negotiation Tactics
Principle #4:
Principal #5:
Principle #6:
Principle #1:
Research
A wise friend once told me that success is in the details. When it is time for
you to make an automobile purchase, take the time (as much as you need or is
feasible) to make sure that all the details are attended to. Often, there is
much more going on with a car purchase than most people realize. It is highly
recommended that you allow at least a week or two to complete the purchase, as
this is usually the minimum time frame you will need to manage and research all
of the details. Paying attention to the details is what is going to help SAVE A
LOT OF YOUR HARD EARNED MONEY. The following is a list of things you will need
to attend to before you go and begin looking at vehicles. The idea is to gain
an advantage by engaging the sale armed to max with information.
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Research the vehicle(s) you are thinking about purchasing. If you already
have done this, or know exactly what vehicle you want to buy, then skip to
the next item in this list. If you are in the process of deciding what
class and model of car to buy, a good place to start is to determine what
you will use the car for and what your needs are in relation to the
vehicle. For example, if you commute, or plan on using the vehicle for a
large amount of travel, than the interior comfort of the vehicle may be
higher on your priority list. Do you plan on using the vehicle for towing or
off-road driving? Do you need extra room for your stuff or your family?
How important is the vehicle’s safety rating to you? How important are
acceleration and power? These are the types of questions you will have to
answer for yourself before you go to the dealership and begin looking.
There are links on our site where you can do this research, or try Consumer
Reports at
consumerreports.org. It is advised that you have a solid idea of what
you are looking for before you begin physically looking at vehicles, because
a day at the dealership can quickly become an overwhelming experience if you
don’t already know what you want. Avoid going to a dealership unless you
know they have the model(s) you are looking for.
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Know the approximate values of the cars you are looking to buy as well as
the value of your trade-in. If you have a trade, we advise you to sell it
outright if at all possible. Before making a purchase you should have a
good grasp of the prices and market values of the vehicles you are looking
at. You can do this by checking the classifieds in you area, looking at
dealer prices, or searching on-line at sites like
MyCar.com. Be sure to clip ads and print out pricing information you
come across on the internet and in newspapers, as this can be a big help
during the negotiation stage. There are a few phrases out there in the land
of auto that describe different car values: Retail Value, Trade-In Value,
and
LoanValue.
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Retail
value is essentially a market-wide average of the retail selling price for a
given car, and is the highest value. However, you are not going to pay
retail so this number is meaningless. The Loan value of a car
is the approximate amount that a bank will finance for a given vehicle.
This amount is less than retail since most purchases require a down
payment. Trade-in value is the average amount you will get from a
dealer for your car. You can get these values from several different
sources. Check with your bank; loan officers will have the most recent
edition of one of the major guides. Many public libraries also subscribe to
either the NADA Guide, the Kelley Blue Book, or both. Or you can also check
on-line at
nada.com or
kbb.com.
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Know the laws and regulations in your state that govern automobiles. Know
exactly at what point you become the owner of the automobile. In most
states, you become the owner not when you sign the contract, but when you
take delivery and drive the vehicle off the lot. Find out if there is a
cancellation clause in your state’s laws that allow you to take the vehicle
back. In some cases the contract may be cancelled after you have taken
delivery of the vehicle, but the time frame is usually very short (24-72
hours after delivery)
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Contact your insurance agent and let them know you are shopping for a
vehicle, and will likely be buying one in the near future. If you have a
solid idea of some of the models you are considering, then this would be a
good time to check some insurance quotes. Premiums can vary greatly even
amongst cars that are in the same class. Some factors that affect the
prices of premiums are: year of the vehicle, trim package, number of
cylinders, cost of the vehicle, cost to repair. If you are considering more
than one vehicle, be sure to get some insurance quotes, they may help you to
determine what to buy.
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Secure your financing ahead of time and check your credit so you know
exactly what you qualify for. If you plan on paying cash, then this really
doesn’t matter to you. Go to your own local bank and talk to a loan
officer, they can tell you how much of a loan you qualify for, and often
times they can get your credit report for you. Or go to
LendingTree.com or
E-Loan.com (More on this topic in Principle #5).
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