Yahoo Autos Five Steps to Be Certain You’re Buying the Right Car
Car salespeople tell us that many buyers choose vehicles that are obviously unsuitable for them. “Be very thoughtful about what you want and need, because a good deal on the wrong car is a bad deal,” according to car-buying expert and sales trainer Don Fuller.
The wrong car he refers to comes in several forms, but the bottom line is this: Many people act like kids in a toy store when they walk into a car dealership. They want the biggest, shiniest, flashiest toy they can imagine. While we understand the excitement and maybe even the anxiety, we’d also make a plea for calm and thought. Take a deep breath and consider these five steps to make sure the car you’re buying will really meet your needs for as long as you’re making payments on it.
1. Don’t Buy a Car That Is Too Small
Within the kids-in-a-toy-store syndrome is the wants-versus-needs battle that rages inside us on a regular basis. In vehicle terms, it often plays out this way: A 30-something buyer with a spouse and two wonderful little kids really wants a sports coupe. But the spouse suggests that what they really need is a small SUV or-heavens!-a minivan. When this 30-something driver talks with the car salesperson, the desire for that sporty-coupe ride is evident. Do you think the salesperson will steer the buyer away from that dream car?
If the shopper succumbs to irrational desire, over the next five years the increasingly bigger kids will be forced to squeeze into the cramped back seat of the wrong car. So, Step 1: Eliminate cars that are too small from your shopping list. Just don’t go there. “Be careful about analyzing what you really need,” Fuller said. “Obviously, if you are facing a growing family and a limited budget, it makes no sense to lust for a high-performance two-door.”
2. Don’t Buy a Car That Is Too Big
Buying a car that is too big isn’t the same problem as buying one that is too small, but it is still buying the wrong car-or, maybe, truck. Here’s how it can happen. Fuel prices are down, and the economy is up. For once in your life you’re feeling a little flush, like you’re not quite living paycheck to paycheck. And, man, that full-size four-by-four crew cab, lifted and loaded, is one sweet ride. Why not live a little? Well, here’s why-fuel prices are volatile, and the economy rides a roller coaster. Over the loan term, you’re likely to find yourself driving more vehicle than you need, while you’re still paying on it big time and it’s worth half what you bought it for. So Step 2 is a lot like Step 1 in reverse: Eliminate vehicles that are too big and too expensive to operate from your list.
3. Don’t Buy a Luxury-Brand Car Just for the Status
Luxury vehicles are great. They offer leading-edge technology and safety. They have beautiful, comfortable, nice-to-live-in interiors. They can be very worthwhile choices. But many people stretch their bank account to the breaking point simply to buy a luxury-brand vehicle that has no advantages, other than prestige, over nonluxury vehicles that can cost far less. This is where a few minutes of real research at Car and Driver can literally save you thousands of dollars. Think about the features you would like your next vehicle to have, and then search through the available models to find vehicles that offer those features. Often you will discover a vehicle that embodies your needs and desires that was not on your radar until you did your due diligence. It might even be another luxury car that is being offered at a special price. To summarize Step 3: Eliminate luxury vehicles unless you can rationally say a luxury car will be the best value for you.
4. Don’t Lease a Car You Should Buy
Our hard-bitten car salesman buddy is dead set against leasing for almost everybody. But even a proponent of leasing will advise you not to lease a car you can afford to buy. For most people, buying a vehicle is simply a better financial deal. For one thing, it reins you into reality, because the down payment and the monthly nut make straining your finances somewhat more difficult than with a lease. But more important is that if you purchase a car, you are actually buying a physical asset, albeit a depreciating one. If you lease, you are essentially renting the car from its owner over a defined period of time. By purchasing the asset, you will become its lord and master. You can keep it as long as you want and do with it what you will. In contrast, if you lease, somebody else owns the car, and there are prescribed limits on what you can do with it and even on how much you drive it. So, Step 4: Find a vehicle that meets your needs and one that you can afford, and then consider buying it.
5. Don’t Buy a Car You Can’t Afford
You might think that it is impossible to buy a car you can’t afford, because you can’t get financing on a car you can’t afford. To which we reply, have you ever heard of the repo man? Many car buyers have a reach that far exceeds their financial grasp. And it is not part of the car salesperson’s job description to talk you out of buying more car than you really need. If you want a larger car, a higher trim level, additional options, and more accessories, they are more than willing to ladle them on. After all, the customer is always right. So that means the onus is on you to keep your expectations within bounds that your checkbook can accommodate. “One common mistake is not making any financial allowances for rainy days,” Fuller said. “Maybe you can make the payments fine right now, but Mother Nature won’t help you if the kid needs dental work.”
So, Step 5: If you are about to embark on a purchase that would mean more than 15 percent of your net income will be going to transportation-related expenses-car payment, car insurance, fuel, repairs and maintenance-just don’t do it. Instead find a vehicle-maybe Certified Pre-Owned (CPO)-that will keep your monthly transport expenditure under 15 percent of your income.
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