Buying a car

Should I buy a new car or used car, program car, or lease? With so many options out there, we need to break it down to the basics. What does a car mean to you? Almost everyone has a car, but they mean different things to different people. Some see a car merely as transportation, while others see them as an extension of themselves, a way to show their personality off. Still others see them as status symbols or items of prestige. This is what you need to consider when buying a car. Is it merely transportation to you, or is it an extension of you, your hopes, dreams, and ambitions? Once you figure out what a car means to you, then you can pick a model and use these tips to buy a car.

If you merely need transportation, buy a cheap, used preferably Japanese car that gets good gas mileage that will last forever. Even if the car breaks down once or twice a year, the repairs will still be WAY less expensive than a new vehicle. In addition, I like that an old car does not need full coverage insurance (because it’s not worth anything), and you can park it anywhere because you don’t have to worry about someone scratching it. Now, if a car is an extension of your personality, you need to really think what you want people to perceive you as. If you are a macho football player, you probably aren’t going to want to be rolling around in a VW beetle. You probably will want a Camaro, Mustang, or similar stereotypical macho car. When it comes to cars, stereotypes really do hold pretty consistently.

The most important thing here is to pick a car that matches your personality the first time. I known several people that go through a car every three months because the car just doesn’t “fit” them. This is a way to waste a lot of money. I thought about it for several years until I figured out the perfect car that matched my personality, will always be a classic, and always makes me happy. Now, I never have to buy another. The main money saving point here is don’t invest a lot of money in a car until you KNOW it will make you happy. Do your research. Test drive, study, research, go to car shows and read magazines, and you will find the perfect car for you.

If you are looking for prestige, that is simple. Many Lincolns, Cadillacs, and similar luxury cars depreciate like crazy. After just a few years, they are worth a fraction of what they were new, and are most usually cared for and lightly driven because they are primarily bought by old fogeys (there goes that stereotyping again). If you want to save money, buy one of these cars that is five or six years old, and it will be nice, and cheap. If you buy one used however, be sure you know a little (or a lot) about maintenance and repair, as repairs can get expensive on a used luxury car.

Many people don’t know anything about repair, and don’t want to. If you want to buy new, many times Japanese and European luxury cars are a bargain simply because they hold their values much better, especially Lexus and Mercedes. These cars can be alright to lease because of this reason. In general, I would never recommend an individual to lease a car if you can afford not to. There are tax reasons a business may want to lease, but for individuals it rarely makes sense if you can afford not to.

Many times there are extra charges and fees that are added to a lease, and when the car is turned in, dealers often find “hidden damages” to charge you even more, or to try to make you purchase the car. I heard about one person who turned in a car with nothing wrong with it, and was then informed weeks later that a infrared inspection of the cars glass turned up an invisible crack in the windscreen, and of course charged that person for a new windscreen. If you read the service ratings for car dealers, then you know why people don’t want to deal with them.

This brings me to my next point, if you are going to buy new, you need to have a game plan to deal with dealers. Believe me, they have plans to deal with you. Simple tips are to research everything on the internet, models, prices, repair records etc. Also, shop around, even if you know you want a new, red, V6 Camry, go to, or at least call three or more dealerships to compare prices. I know of people who have driven 1200 miles for a new car. If you can save $5000 though, why not?

Also, never buy a car the first time you walk into the dealer. They will try everything from telling you they have to talk to their manager to get a “special” deal for you, to taking your keys for your trade in so you can’t leave right away. Dealers know that if a person doesn’t buy the first time they come in, they probably won’t, so they will try anything to keep you there. Just make it clear that you aren’t prepared to buy today, you are just comparing prices. By the way, don’t trade in your car, it is a big rip off. Dealers don’t want your old heap, so why would they give you a good trade in? They will simply give you a good price for your trade in, but mark the price of the new car up even more, called the “high, high” deal, and you will end up spending more anyway. Be prepared. If a dealer knows you are an informed consumer, they are much more likely to give you a better price.

And ladies, I want to be honest with you, let your husband, son, boyfriend, or some guy off the street you pay negotiate for you. No one else will tell you this, but I am honest, dealers rip off women. I have negotiated deals for women who have gone in and negotiated and were promised they were getting the dealers low dollar deal, yet without even trying I could get the same car for thousands less. You have probably heard stories about how prejudice car dealers are to women, and I will tell you it is completely true. Don’t get ripped off. The same goes with car repairs. Sorry to say, but people take advantage of women when it comes to cars.

Also, when you buy a car, don’t get fooled into taking all the dealer extras, undercoating, custom floor mats, etc., or at least don’t let the dealer charge you for these. If the dealer tries to charge for extras, compare elsewhere. The most important things to remember when buying a new car, be informed, and compare, compare, compare. When buying a used car, get it inspected by an ASE ceritified mechanic. Even if your brother in law had the car before you, you have no idea how he really treated it. Also, many cars have hidden damage or repairs, so get a carfax report if you are spending a considerable amount for the car. These reports aren’t foolproof, but many times turn up damages one would not know of otherwise. Again, be informed.

I find it is rarely worth buying a wrecked car. Cars, especially new ones are very finely tuned machines and can be easily damaged. That is why a five mile an hour crash can do thousand of dollars worth of damage. Imagine a real hard impact at speed. I find it hard to believe that those damages can ever be fixed completely, and my experience tells me this also. Damaged cars may wear out tires faster, have engine problems from the initial jolt, and may be weaker structurally because of all the bondo and fixed pieces holding them together. Even if the car is cheap, unless it is dirt cheap, better to pass, as it really is a gamble.

Also, don’t buy a used car from a dealer in most cases. Dealers rarely offer bargains and certainly know how to make a car look good, when it may not be the case. An individual rarely has the tools to make a car shine and sparkle unless it truly is a nice car. Look under the hood, if the engine is dirty and has oil leaking all over the place, no matter what the rest of the car looks like, it is probably beat. The two places I look at a car FIRST are under the hood and in the trunk. These places will tell you a lot about how someone treated a car. And again, get an inspection before you buy.

Finally, as I mentioned cars mean different things to different people, but since I write a money blog I will give you the lowdown. To save money, I would buy a 10 year old Japanese car. These most often have many miles left on them, are cheap to maintain, last forever, and at that age, are very often inexpensive. They might not be the cool cars, but if you are looking to save money, that’s the way to go. Not having a car payment is the best deal of all! Happy motoring.