For some people, buying a new or pre-owned vehicle is an exciting adventure highlighted by vigorous negotiations, long test drives and precision maneuvering to get the best financing.
Step 1: Determine how much you can afford.
Everybody loves the look and quality of an expensive luxury car, but most buyers can’t afford them. That’s OK, because plenty of vehicles drive awesomely yet won’t drain your bank account.
Before you begin your search, decide how much you can afford. Auto guide Web sites like cars.com and some manufacturers’ sites have a payment calculator that lets you input your expected down payment or trade-in, financing rate, length of loan and vehicle price. The computer takes all the data and spits out your monthly payment.
Then there’s the question of whether to lease or buy.
“The advantages to leasing are payments and length of terms,” said Bill Estes, owner of Bill Estes Chevrolet and Bill Estes Ford. “GMAC is back in the leasing business. Leases are usually 36 to 39 months, where you are committed for 60 to 72 months with buying. Loaded vehicles often have lower payments because they have higher residual values.”
Step 2: Decide which vehicles to consider.
You might have a shiny new sports car or comfy SUV in mind, but really consider what you want. A sports sedan can provide the driving pleasure of a coupe and provide legroom for family and friends. A minivan or crossover offers as much space as an SUV but with better fuel economy — perfect for drivers who don’t tow or go off-road.
Stop and think before you purchase to keep your emotions in check. Nothing is worse than buying a new luxury van only to whack off the luggage rack driving into the garage (been there).
Gather the facts using online or printed buying guides. They’re a great one-stop way to see everything available, including prices and key features. Used-car lists are stacked at most gas stations and online to guide your purchase.
Skip driving hundreds of cars yourself by checking out professional auto reviews at sites such as www.car-data.com. The writers drive all the new vehicles before offering well-informed opinions.
Step 3: Prepare to deal with sellers.
Do your research. Many manufacturers — including GM, Ford, Chrysler, Mercedes and Lexus — are offering end-of-year specials, preferred financing rates or cash-back incentives.
“Now is a great time to buy,” said Fernando Falcon, president and CEO of Champion Chrysler Jeep Dodge. “We’re offering zero percent financing for 60 months on select models. In many cases, you can take advantage of tax write-offs if you purchase before the end of the year. Our certified used vehicles come with the benefits of a new car, like a five-year 80,000-mile warranty and towing assistance, but are priced like pre-owned models.”
Sites like www.kbb.com and cars.com list dealers’ invoice prices, current incentives and lease deals. You can do side-by-side vehicle comparisons from your desktop. Almost all automakers have certified used vehicles that pass rigorous inspections and come with warranties.
Step 4: Find the right car for you.
If you’re an auto reviewer, good for you — you’re set. Everyone else should head to the dealer for a test drive.
Start with a traditional Sunday visit to check out the lot when dealerships are closed. Before entering the realm, you can evaluate available colors and options and read window stickers to learn gas mileage, safety information and pollution data. Keep in mind that dealers can search other lots’ inventory to help you find your preferred vehicle in a particular color or with certain features.
While on your test drive, pay attention to the vehicle’s seats, performance, controls and legroom. Does the ride feel comfortable to you? Is the car the right size? Does it handle with the sportiness you want? When you find a vehicle that could satisfy you for the next 100,000-plus miles, mission accomplished.
If you decide to go pre-owned, have the vehicle checked by a qualified garage. Put it on a lift and check everything. Get a CARFAX report, which sheds light on the vehicle’s history and helps you know what you’re buying.
“Go online and get educated,” Estes said. “It is not easy buying a vehicle, and incentives can be complicated. There is an incredible amount of information online.”
source: indystar
