| New Car Purchase: | | | | be. Nonetheless, I would recommend taking any used |
| Purchasing a new car is typically easier to buy versus | | | | car you are considering to not only a mechanic shop |
| a used car because there are not as many issues to | | | | for an inspection, but also to a body shop to guarantee |
| research prior to the purchase. When buying a new | | | | that the car has not been involved in a previous |
| car, you as the consumer are in the drivers seat | | | | accident. The dealership will offer a carfax or an |
| because there is typically more than one new car | | | | autocheck to reassure you of this problem, but I have |
| manufacturer in your area. The first thing to do is | | | | seen cars that have been wrecked that will not show |
| obviously selecting which car best fits the needs of | | | | up on these particular reports. So, do you yourself a |
| you and your family. | | | | favor and invest a little extra money prior to the |
| The best way to accomplish this goal is the Internet. | | | | purchase and you could potentially save yourself a lot |
| Do not select a car based on looks alone! Narrow | | | | of money and heartache down the road. |
| down 4-5 cars that interest you and research the | | | | Financing: |
| safety ratings, resale value, and initial quality ratings of | | | | Financing your new or used car can be a huge part of |
| all the cars selected and compare. Once you have | | | | the buying process if you do not know how to |
| narrowed these cars down to a shorter list then you | | | | properly address this crucial step. I always recommend |
| are ready to check prices. There are several Internet | | | | that prior to the purchase that you sit down and figure |
| sites that provide invoices to most makes and models | | | | out what your monthly budget allows you for your |
| such as Edmunds, Kelley Blue Book, and Consumer | | | | new vehicle. Also decide if you are in a position to put |
| You can also go to the homepage of the | | | | any cash down toward the purchase, which will only |
| manufacturer to which you are considering. The next | | | | benefit you. I also recommend going to your local bank |
| step is to make contact with the dealership you are | | | | or credit union and sit down with the loan officer, which |
| considering doing business with and there is usually an | | | | will assist you in deciding what you can afford based |
| Internet manager that you can email to make an | | | | on your income and situation. Once the monthly |
| appointment. Having a contact at the dealership prior to | | | | payment has been determined, the loan officer can |
| the sell will significantly reduce the level of stress | | | | come up with the best term that fits your needs. |
| involved in the purchase of your new car. When you | | | | Term, which is the length of time you will be financing, |
| get to the point of working numbers with the salesman | | | | is very important in this process. The longer the term, |
| it is a good idea not to be rude or unwilling to negotiate. | | | | the more money you will pay for the car and the more |
| You must remember the salesman is doing his job and | | | | likely you will be in a negative equity situation. Negative |
| this is how he makes his living. A good rule of thumb to | | | | equity is when a person owes more money on |
| getting a fair price on a new car would be to pay | | | | something than it is actually worth. Typically, doing |
| invoice price minus any rebates that apply. Anything | | | | business with your local financial institution is better than |
| less than that is even better, but I would not | | | | doing business with the dealerships financial |
| recommend going over the invoice price. | | | | department. I only recommend doing business with |
| Used Car Purchase: | | | | them if the manufacturer is offering a special rate such |
| When considering purchasing a used car, there are | | | | as 0%. The finance manager at a dealership makes |
| additional steps to take in comparison to a new car | | | | his or her commission on the interest rate he provides |
| purchase. With purchasing a used car there are risks | | | | to you and also on the inflated prices of services he |
| involved such as buying a car that has been previously | | | | may try to add to the contract such as extended |
| wrecked, a car with mechanical problems, or a car | | | | service plans. I hope these tips will help you during the |
| that may need reconditioning even after the purchase. | | | | purchase of your new or used car, good luck! |
| Obviously these risks increase the older the car may | | | | |