How to Buy a Car!

1. Step by Step Guide How to Buy a Car!

2. A new car depreciates (decreases in value) quickly - after 3 years is worth 60-70% of it’s original value ($20,000 = $12,000) – as soon as you drive off the car lot your NEW $20,000 car is only worth $18,000 A new car smells good and has a warranty A new car may have problems like poor design or manufacturing defects You may not be able to afford all the new bells and whistles later New or used

4. Used will save you a lot of money Used is a gamble – no warranty that the car is accident-free, has real mileage, and was properly maintained (oil changed every three months) Used may have hidden problems like a worn out automatic transmission ($2,000+) or engine problems that may not have been obvious when you test-drove the car ($2,000-$10,000) Used

6. Be prepared Research – Read Reviews, Consumer Reports, Ask Friends, Compare Options, Gather Gas Consumption Data on Make and Model Examine Reliability Ratings Determine Maintenance Costs and Upkeep Narrow your choices to TWO Go into a dealership knowing what you want Take the risk out of buying used

8. A friend of mine bought a used BMW for a great price. When he took it for servicing, they discovered that the rear shock absorber was leaking. The price for the part alone was close to a $1,000. (Another $200 for labor) Finally, he sold his BMW and bought a used Camry that proved less expensive to maintain. Scenario

10. Vehicles that have been flooded or restored after serious accidents, those with rolled back odometers (mileage), heavily abused vehicles (ex: rentals), those with outstanding liens (used to take out a loan on something else), can be eliminated after simply checking the history record of the vehicle To check a car history you use the VIN number usually printed on the driver door Check Car’s History Record

11. Check out the car yourself Get a mechanic you trust for an inspection NEVER give a deposit or sign a contract before the car is inspected Seller may not be truthful

12. If buying from a private owner, check with the Vehicle Registration Authorities to make sure there are no liens and that the car has not been stolen If buying from a dealer, check warranty policy and fine print – Do not rely on a salesperson’s verbal promises – Get it in writing – Find out if there is any remaining original warranty Paperwork

13. Don’t look for the cheapest car You want a car in good condition They sell it cheap because there is something wrong with it Car Value and Price

14. First determine your bottom line on how much you can afford from your budget Sometimes they hide the higher price total under “low” monthly payments – takes longer to pay the car off Remember sales people make a commission (extra pay) off the vehicles they sell Decide how much you can afford

16. $10,000 - $18,000 decent car/3-4 years old – find at a new car dealership – sometimes through a private owner $5000-$9000 6-9 year old car-high mileage – good shape – find at independent used car dealers $1,000-$2,000 – a simple transportation machine – gets you from point A to B – Plan on spending a lot more money to repair it – can get through a private owner or car lot Type of Car – Price Range

18. Before you make your purchase you need to find out how much the insurance will cost • You can get online quotes through: • GEICO • INSURANCE.COM • AIGDirect.com • 21st Century Insurance Company Insurance

20. 155,000 miles and higher is a lot of miles • Low miles does not necessarily mean a good car • 60,000 -80,000 mileage – great – BUT make sure the car was maintained • Grandma got sick – car sat in garage for 6 years – car was 10 years old with only 40,000 miles – not good because mechanical items just sitting tend to deteriorate What mileage is okay for a used car?

21. Don’t buy a car older than 10 – 12 years It doesn’t matter how cheap it is – the car is old and will need lots of repairs and new parts 3-5 years perfect choice Remember – 2000 model year does not mean production year – August 1999 production - How old is too old?

22. Inquire information about a car in the newspaper • Answers like: “It is a friend of mine’s car” • “I bought it a couple months ago” • Be suspicious – You need to deal with the actual owner or second scenario – the car may need some major repairs that they didn’t know about and now trying to dump it Make phone calls

23. If they ask $15,000 offer $13,000 Be ready to leave if the dealer is pressuring you or you have hesitations about the vehicle Don’t decide immediately – sleep on it Don’t sign unless all your conditions are met Competition is good – tell the dealer you are also looking at another place and comparing Get promises in WRITING Negotiate a deal