Looking at the economy, why would anyone want to buy a new (or a “new to you” car) at this point?
Here are the negatives facing consumers:
- Decreasing consumer confidence
- Unknown job market and employment situation
- Unavailable credit for even what would normally be considered “healthy” consumers
- The fate of automotive makers – why buy from someone who may no longer be in business
On the positive side:
- Potential tax credits for individuals who purchase
- Automotive makers are providing unprecedented discounts
- Dealers are heavy on inventory and want to move product
Let us say one does want to buy a car, does that mean new or used? We should first take a step back and determine how long you intend on keeping the car. Keeping in mind that the days of easy credit may long be past, and the car buying experience may be once in ever 10 years rather than once in every three, a buyer should put a lot of thought into this decision. If that is the case remains to be seen, but it would not hurt to plan in such a manner.
Scenario #1: New
You want a new car. Great! Now it is time to start asking some questions about what the car will do for you… More specifically:
- What do you want in the car?
- How do you expect your lifestyle to change in the next 5 to 10 years?
- How many miles do you drive every year?
- Do you plan on moving, and would there be dealers in that area?
- How much do you want to spend on yearly maintenance?
Now that you’ve determined what is important in your new vehicle, and because you expect this purchase to last for some time, you should focus on the companies that expect to be around to support your auto. Immediately cut any car company that you don’t believe will be around in 10 years. That means GM and Chrysler. That already our a lot of fat for you – including Hummer, Pontiac, Saab, Saturn, Dodge and Jeep – along with a whole other range of cars. This allows you to focus on the automakers that are expected to survive – Toyota, Honda, VW, Ford* – when starting your research.
Head over to JDPower, Edmunds, Motortrend, Lemonfree.com and caranddriver.com to see what vehicles fit your needs. Chances are you will find a number of automotive critic reviews, individual reviews and enough safety information to make your head spin. Once you’ve determined your vehicle, get the invoice information from one of the sites you did your research from and start pounding the pavement. Go to a number of dealships, get a number of quotes and play the system. You need to remember that they need you more than you need them. Leverage that fact and press for a deal.
Scenario #2: Used
So you’ve decided a used car is what you need. Perfect!
Notice that I had originally asked why how long you plan on keeping this car? If you’ve made the decision that a used will fit your needs or budget, just simply be aware of potential lifespan issues you may face down the road. A 5 year old car may look good now but it may mean you will have to purchase a new car in 5 to 7 years as well.
I would suggest the initial steps to finding the car of your choice would be the same as researching for a new vehicle. Depending on the age of the car you are looking at, you may have a significant advantage in the amount of research available to you. By now the recall information, known mechanical issues, and detailed user satisfaction information is available all over the net. You can find dedicated user forums that specialize in your choice, pop by enthusiast websites or find a social networking site that can provide you with information.
Now start looking for inventory. Check Cars.com to see the number of matches you can find, check the Kelley Blue Book price listing, and start pounding the pavement and negotiating with the dealships.
But how are you going to pay for this?
Chances are you do not have a huge stack of cash just burning a hole in your pocket. If that is the case, you will need to arrange financing for your purchase. While it is true dealerships have the ability to provide financing, you may get a better deal by looking around.
Here are a few resources to check out:
Just remember..
Make sure you take advantage of the information on the internet and remember that you are in control. There is no rush, nor is there a need to rush. Find what works for you and take advantage of the current environment if you can.
*I say Ford because they appear to be rather strong – comparatively speaking – to GM and Chrysler.
Related posts: