Advice & Tips on Buying a New or Second Hand Car from Schmeg.com

   

Saving Money on Your Next Car: You'll Never Have to Pay Full Value Again

You might not be filthy rich, but you can still drive a nice car. Junkers are things of the past with the right negotiation skills and smart shopping techniques. If you know what you want, you can get it for less than Blue Book or retail value any time you want.

In the past, this meant haggling for hours with a stubborn salesman who would not budge far, if at all, to meet a fairer price. Now it’s a simple matter of intelligent shopping and patience: you can get a good auto without negotiating for three hours on end. You will still interact with salesmen, of course, but the following tips and advice will help put the power where it belongs: on your side.

First, you should know exactly what you want and need from your next vehicle. This list should include makes and models from which you are willing to choose, features and safety options, and any other things that cannot be compromised. For example: if you absolutely must have a pickup truck, you should not settle for a Ford Fiesta with a tow hitch.

Next, add desired features to your list. These are things that you are willing to let go for a great deal, but will be more than happy to take if you can find them at a decent price. The list can include things like custom audio systems, heated seats, and navigation equipment.

Make these lists as long or short as you want. Be warned, however, that you probably will not get everything you want. Unless you suddenly win the lottery or find a long-lost third-removed cousin who recently died and left you trillions of dollars in cash, you will probably have to compromise, at least where your wants are concerned. If nothing else, remember that many components and features are also available in aftermarket versions, many of which are of higher quality than the original equipment. You might not get your five-billion-watt stereo system today, but you can always shop around later with all the money you will save on the auto itself.

One option is to pay the entire cost up front so that you can avoid expensive interest charges. This can save several thousand dollars: another benefit is that, because the auto is completely yours, you can do whatever you want with it. You do not have to worry about not being able to make a payment because of unforeseen emergencies. You can sell it or trade it whenever you want. You can also drop down to minimal insurance, depending on where you live and what your state’s laws dictate. You might think that financing is still good in order to be sure that the auto is covered by the dealer in case something goes wrong, but you can get your own insurance coverage for that. Also: many dealers will sell you extended warranties even if you pay cash and take the title with you. It’s all part of making sure that you will want to come back to them the next time you buy a auto.

This is not an easy way to save money. Most people do not have that much cash sitting around in bank accounts or wall safes. If you have a relative or friend with that kind of money, ask for a loan. If he or she extends it to you, it can be paid back at an agreed-upon rate: odds are that if you fall into hard financial times, good old Uncle autol will not charge you late fees.

HOW TO SAVE MONEY ON DEALERSHIP autoS:

-Wait until tax time. Many dealers receive plenty of trade-ins, which they want to move to make room for more. This is where you come in: their lack of room and need to move autos that they probably gave too much trade-in credit for makes them that much more willing to let them go for better prices. Remember to consult Blue Book value before you agree to anything, and don’t hesitate to ask for a better deal than the first one offered.

-Shop right before next year’s models hit the ground. Again: dealers want to move old inventory to make room for the new. You can get a pre-owned or brand-new vehicle for several thousand dollars less than if you try to buy two months after the new models have made their way to the dealership.

-Stop in toward the end of the month. Like many other professionals, salesmen have quotas to meet. If they haven’t been moving autos very well this month, they will be more than happy to drop the price to make a sale.

-Look at the demo auto. Many dealers have one of each model for test-driving purposes. It will have a few miles on it, but the dealer has made sure that it is in pristine condition. This is, after all, the one he or she is using to try and sell as many of that make as possible. Because it is not technically brand-new, it will go for several thousand dollars less than its virtually-identical counterparts.

-Hope you have very foul weather. Hail, massive windstorms, tornados and other acts of God tend to leave their marks on vehicles new and old alike. You could save a large chunk of cash if you are willing to take on something with a few dents in the body. The good news is that most weather-related damage can be repaired with ice cubes, a dent popper, and a little touch-up paint, all of which are much, much cheaper than what you would pay for a auto without the physical damage.

-Don’t be suckered by the “HUGE, HUGE SALE!” ads you see every two or three days. Just because a dealership advertises a massive sale does not mean you are actually going to save all that much money. Salesmen want you to think that this is the biggest, best sale of the century so that you will come in now instead of waiting for better opportunities.

HOW TO SAVE ON PRIVATE SALES:

-Look in auto-trader magazines and publications. Countless people list vehicles of all conditions in every issue. If you can find something that belongs to a conscientious owner, you will probably pay much less than if you buy the same thing at a dealership. Even if you buy used at the auto lot, you are still making up for salaries, overhead, and other costs that do not apply to private sellers.

-If you live near a college/university campus or a military installation, keep an eye on classifieds, bulletin-board postings and other likely places to find private listings. Because these two groups of people are highly mobile, they will often sell great rides very cheaply. The catch is that you probably must have cash up front because the seller needs to get rid of the vehicle so he or she can move on to the next station in life.

-Police departments and other government agencies frequently hold auctions to dispose of impounded vehicles. Some of them are piles of junk, but take a knowledgeable friend along to help pick out something that you can enjoy for years to come. Remember: many of these vehicles were bought with illicitly-gained money, so don’t feel bad about paying five thousand dollars for a thirty-thousand-dollar auto.

Check City Hall or do a Web search for auction listings in your area. Some auto dealerships host them, so call around if you cannot find anything elsewhere.

BEFORE YOU BUY:

-Unless you love restoring junk autos, tell yourself that you will not try to save thousands and thousands of dollars by purchasing something that has been abused, neglected, and run nearly to the breaking point. If you want to restore it or bring it back up to acceptable standards, go for it: there are few things in life more pleasurable than turning somebody else’s junk into your personal treasure. If not, be willing to cut your potential savings in favor of something that you can rely on.

-Get online or dig out the Blue Book to find fair retail value for the autos on your list. Wait until you have specific vehicles in mind so that you can get the suggested retail price for these autos or trucks as they are. Variables such as your region, the auto’s condition and accessories or options packages can increase or decrease the “average retail value” by a few thousand dollars either way.

Also note that your region might affect the price, so if you plan on shopping in another part of your state, or even the country (which is not unheard of thanks to the Internet), look for the seller’s pricing zone, not your own. This could save you a few hundred bucks, which will be great to put into the gas tank for the trip home.

-Inspect the auto from bumper to bumper, or pay a mechanic/automotive technician to do this for you. Some of these men and women specialize in pre-purchase inspections: for a small fee, they will go over the entire vehicle and give you a list of problems that it already has as well as things that are likely to go wrong in the near future. This list can include small details such as a pending need for new belts and hoses or major things such as signs of a dying engine. This is worth the investment because you will have a very good idea of what to expect, especially if you are purchasing from someone who does not offer guarantees or warranties of any kind.

-Ask about guarantees and warranty coverage. If you buy from a dealer, it is almost a given that this will be an option. It will cost a few hundred extra dollars, but you are saving more than that by shopping intelligently. Also, it’s worth the investment in case something major goes wrong, such as a blown engine or transmission. Either of these can cost several hundred, if not a few thousand, dollars to fix.

-Know the make and model and what you can expect from it. Internet message boards, dealership fliers, and automotive magazines are great places to dig up positive and negative information. Other consumers and experts will be more than happy to tell you if your dream minivan has a nasty habit of stalling out at top speed, the stereo in the family sedan is the best factory system ever, or the gas mileage in the two-door really stinks.

-Never accept the first offer, even if it sounds like the best deal you have ever seen in your entire life. Yes, this means a little negotiation: just not three hours of it at a time. You can always sit back and say, “That sounds all right, but I was thinking of something a little lower than that.” In most cases, the seller will name a lower price. If not, there are thousands of other autos in your city alone that are begging to be bought.

Finally, enjoy driving your newcar. You’ve earned the right to have as much fun as possible in it, whether you are taking it to and from work every day or going out on Spring Break with your friends. If properly maintained, this vehicle should give you years of reliable service – especially if you did your research and found a solid, well-maintained auto.

See also: Raise the Selling Value of Your Used auto