Car Buying Recommendations
But many Americans make big mistakes buying cars. Take new car purchases with a trade-in. A third of buyers roll over an average of $5,000 in debt from their last car into their new loan. They're paying for a car they don't drive anymore. Ouch! That is not a winning personal finance strategy.
car buying recommendations
"The single best advice I can give to people is to get preapproved for a car loan from your bank, a credit union or an online lender," says Philip Reed. He's the autos editor at the personal finance site NerdWallet. He also worked undercover at an auto dealership to learn the secrets of the business when he worked for the car-buying site Edmunds.com. So Reed is going to pull back the curtain on the car-buying game.
So Reed says having that preapproval can be a valuable card to have in your hand in the car-buying game. It can help you negotiate a better rate. "The preapproval will act as a bargaining chip," he says. "If you're preapproved at 4.5%, the dealer says, 'Hey, you know, I can get you 3.5. Would you be interested?' And it's a good idea to take it, but make sure all of the terms, meaning the down payment and the length of the loan, remain the same."
So at the dealership, Reed and Van Alst both say, the first step is to start with the price of the vehicle you are buying. The salesperson at the dealership will often want to know if you're planning to trade in another car and whether you're also looking to get a loan through the dealership. Reed says don't answer those questions! That makes the game too complicated, and you're playing against pros. If you negotiate a really good purchase price on the car, they might jack up the interest rate to make extra money on you that way or lowball you on your trade-in. They can juggle all those factors in their head at once. You don't want to. Keep it simple. One thing at a time.
"Concerning the extended factory warranty, you can always buy it later," says Reed. "So if you're buying a new car, you can buy it in three years from now, just before it goes out of warranty." At that point, if you want the extended warranty, he says, you should call several dealerships and ask for the best price each can offer. That way, he says, you're not rolling the cost into your car loan and paying interest on a service you wouldn't even use for three years because you're still covered by the new car's warranty.
"We're actually living in a golden age of used cars," says Reed. "I mean, the reliability of used cars is remarkable these days." Reed says there is an endless river of cars coming off three-year leases that are in very good shape. And even cars that are older than that, he says, are definitely worth considering. "You know, people are buying good used cars at a hundred-thousand miles and driving them for another hundred-thousand miles," says Reed. "So I'm a big fan of buying a used car as a way to save money."
NPR has a personal finance Facebook group called Your Money and Your Life. And we asked group members about car buying. Many said they were shocked by how much money some other people in the group said they were spending on cars. Patricia and Dean Raeker from Minneapolis wrote, "40 years of owning vehicles and our total transportation purchases don't even add up to the cost of one of the financed ones these folks are talking about."
Welcome to the best free car buying guide! We have been educating car buyers since 1999. We cover everything you need to know about buying new or used cars and avoiding car dealer scams. We will review key resources like TrueCar and RydeShopper.
We give you the truth that dealers don't want you to know. We level the playing field, teaching you how to get the best price on a car, while allowing for a fair dealer profit. We give you useful, easy to understand, examples of each step in the car buying process. You'll laugh, you'll cry, you'll buy a car.
You will always get more car for your money when buying pre-owned vehicles. The downside is that what you are buying has been used by somebody else and you don't know how it was cared for. Whichever you decide, your goal is to get the best deal. It's a good thing you landed here because, if you read carefully and follow our tips, you will learn everything you need to know about the process.
We'll review auto buying sites and teach you how to use them to get competing bids to keep the dealers in line. In our research, the best sites we found are TrueCar, RydeShopper, Edmunds and Cars.com. You'll learn how to calculate what dealers pay for new cars and trucks so that you can make a fair offer. You'll learn all you need to know in our new car buying guide.
Many people ask me "When is the best time to buy a new car?" The price you are able to negotiate varies depending on the time of year. Believe it or not, buying during certain parts of the month can get you a better deal. It can even depend on the launch date of a new model year. Read our tips on the best time to buy a car.
The savings reported by our visitors breaks through the $13 million mark, confirming the quality of the free car buying education you receive here. Recent visitors are reporting savings of between $2,000 and $6,000+ off of MSRP on even moderately priced vehicles.
For many people, there is nothing more daunting than the challenge of buying a car. Whether it is used or new, the process can require a lot of time, patience, budget consideration and most of all, information. When deciding which vehicle is the right fit for you, make a checklist and answer each of the following questions:
Shopping for a used car near Indianapolis, Lawrence, and Speedway, Indiana, is an exciting experience. So, turn to the Andy Mohr Nissan team to assist when you have questions or need advice. This used car buying guide is only the beginning of the many ways we can help.
Lenders may each have different requirements when it comes to loan approval. Some lenders may also have partnerships with certain dealerships and could offer special incentive programs when you purchase from them. Such programs could make the first-time car buying process a little easier.
Please keep in mind that the price you end up paying will not be the same as the sticker price on the car. While that may be what you pay for the vehicle itself, you will also have to cover fees for documentation, prep and delivery, sales tax and any additional accessories or extended warranties that you may choose to purchase. While buying your first car from a dealership may be safer in some respects, it may also end up being the most expensive because of these additional expenses.
Waiting is never fun, especially if you need to buy a vehicle as soon as possible. But it's always a good idea to do some research before buying a vehicle you may regret later on. If you know how much the vehicle you're considering should be worth, you'll be better equipped to make an informed decision. Two great resources for estimating the value of a prospective used car are Kelley Blue Book and Edmunds trade appraisal. These tools can help you determine the value of the vehicle you're considering so that you can be prepared to negotiate the best price.
If possible, have a professional inspect the used vehicle before buying. If not, check for unusual sounds or vibrations, smells or signs of leaking. You don't want to have to spend a fortune fixing issues down the road, and if you sense there's an issue with the engine or transmission, it's time to consider other vehicles.
Did you find our Used Car Buying Guide helpful? If you have any questions about the used car buying process or would like to test-drive any of our used vehicles, stop by Simpson Chevrolet of Garden Grove at 10150 Trask Avenue, Garden Grove, CA 92843 or give us a call to set up your appointment. We welcome customers from Santa Ana, Anaheim, Buena Park and Westminster.
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After tons of research, I finally realized why: The vehicle franchise laws in this country are totally outdated. It's against the law to purchase a new car anywhere other than through a franchised car dealership. That means new cars cannot be sold directly through the manufacturer, or any other entity for that matter. And yes, that includes online car buying services - all of which require you to complete the transaction with a dealer.
The laws go back decades - long before the Internet was around, and they've stayed this way due to heavy lobbying efforts by dealers. The sytem creates exclusive territories for dealers and a strong incentive for high-pressure sales, which results in a terrible car buying experience.
It doesn't look like the laws will change anytime soon. However, the good news is the system has some major holes, and it's possible to take advantage of them. It's not unheard of to save $5,000 or more, plus a lot of time and hassle, simply by following these proven car buying strategies.
If possible, you should pay cash to avoid interest payments - but don't let dealers know since they prefer buyers who finance. Those who need a car loan should follow these guidelines: Monthly payments should be no more than 15% of your take-home pay (that's after taxes)
Limit car loans to 48 months or less
Down payment should be at least 20% of the purchase price
If you can't hit these budget targets, you really need to consider buying a lower-priced car. Try looking at used cars or spend a few months saving up for a larger down payment. It's much better to be safe than sorry when it comes to budgeting for a car.
Locating your car is one thing - getting a great deal is another. In recent years, several companies have made it more convenient and pleasant to buy a new car. You still have to ultimately complete the transaction with a dealer, but most of these car buying services now provide pre-negotiated prices, TrueCar.com and CarsDirect being the two that I highly recommend. 041b061a72