|
BUY OR HOLD?
Before you start looking for your new or used vehicle, you need to know what you want to buy or whether you should sell
what you already have.
Keeping your existing car is sometimes the best choice for a number of reasons:
No car payment or lower payment
Keep the current car while continuing to save for the replacement
Keep until rebates or financing are available on the replacement model (change of model year, end of month, end of calendar
year, etc.)
Not sure what you can afford? Check the auto loan calculator.
While this sounds trivial, you'd be surprised how many people see a car they like and buy it before exploring the possibilities
and doing a little research.
NEW, USED, OR LEASE
There are two basic sides to the new and used arguement as follows:
| |
NEW
|
USED
|
|
PROS
|
No miles
Known history
Possible incentives
Lower financing
Longer life
Most reliable transportation
|
Lower initial cost
More room for negotiation
|
|
CONS
|
Higher initial cost
Less room for negotiation
Dealing with vehicle salesmen
|
Higher miles
Unknown history
No incentives
Higher financing
Shorter life
|
LEASE
A few things to consider - how long do you plan on keeping the vehicle? If you typically sell your vehicle every three years
or less, you maintain your vehicle, and you drive less than 12,000 miles, then leasing may be an option to consider. For
more info on leasing, please click here.
NEW
If the model you want is only available new, you don't want second-hand (and you can afford the new payments), or you just
can't live without that new car smell, then click here.
USED
Is the vehicle you want available used? If so, you may be able to buy it used and still have some of the original manufacturer's
warranty left in case of a failure. Also, you may be able to save thousands off of the sticker price of a new model. If
you decide to buy used, you may want to consider a private seller over a dealer for the following reasons:
Known history of the vehicle
More room for negotiation of price
Still get manufacturer warranty
Before you go to open up the classified ads, please click here.
INSURANCE
Another factor when figuring out what you can afford is what is your insurance going to cost? If the vehicle is new and you'll
have a loan, you'll most likely be required to have full coverage. Call your current insurance company or bank to find out
what coverage you're required to have and then get a quote to get an estimate of what your monthly payment will be. Be careful
not to overextend yourself in case unexpected expenses should arise.
TEST DRIVE
Once you've narrowed down your choices on paper, it's time to take a test drive. To save yourself and the salesman time,
let them know you're just looking and you'll discuss the cost another day.
A VERY important point to remember
is that NO SALE IS FOR TODAY ONLY!!!
If you're told that, walk away... no RUN to another dealership! You'll be told
"the sale ends today," or, "I've got end of month quotas," or, "I've got to win a sales promotion we've got going on," "this
sale is for <enter your holiday here - Labor Day, President's Day, Gound Hog Day...> only!"
Remember
YOU are in control. YOU have the money and YOU can go elsewhere. They will do everything in their power to get you to
buy something today. Don't let ANY salesman pressure you into something you don't feel comfortable with.
BOTTOM LINE
If you don't feel comfortable with the deal you're getting, give it 24 hours before making a decision.
|
