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by
Courtney
Caldwell
 Car
buying, whether new or used, can be a daunting task at best. It's
so overwhelming that many of us put it off until the very last
minute. By then we're so anxious to get it over with that we may
not do the proper research or make the smartest choices in our
haste. So what is it about the car-buying experience that puts
the fear of God into so many of us?
There's
no one thing for every person. Ask anyone and you'll get a different answer every
time. For some it's the fear of not being knowledgeable about cars and getting
ripped off. Some don't like dealing with salesmen and fear condescending treatment.
For others it's the nightmare of negotiating. Then there are those who just can't
or don't want to wrap their brain around spending $20,000 for a new car. I understand
this…that's twice the amount of my first new house 30 years ago and half
the cost of what it sold for 10 years later. Go figure. Fear
not. There are solutions that can rid you of these fears but you must be willing
to look, listen and follow a few simple rules. Since there are a series of actions
you must take to purchase a new car successfully I'm going to offer these solutions
in a two-part series to give you time to do the homework. Today we'll talk about
budget and research, the two most critical issues for buying a car. Do these two
things well and the rest will easily fall into place. Let's
start with the first and most important step: putting your budget together. What
can you afford? Don't waste your time on the next step, which is homework, until
you have a good handle on your budget. Start by making a list of questions to
which you should have defined answers before moving on. - What
is your budget for new or used car?
- How
much can you afford to put down?
- How
much in monthly payments can you afford?
- How
many months can you afford a loan?
- Have
you included finance charges in your monthly payments?
- How
much would taxes, license and other fees be with the purchase?
- How
much would your annual property taxes be?
- How
much would it cost in monthly gas and maintenance to operate?
- How
much would auto insurance cost each month?
- Do
I want options and which ones can I afford?
Only
you know your annual income and from that what you're monthly bills are such as
rent, food, utilities, credit cards, medical expenses, etc. What can you afford
to add to those expenses each month and still have money left over for dinner
and movie? Owning
a car, new or used, is a big financial responsibility so it shouldn't be taken
lightly. Understand that it takes an average of four months to adequately purchase
a new car. This includes working out your budget, researching the cars that interest
you, going to dealerships to test drive, and exploring your financing and insurance
options. Buying
a new car is a large investment. You don't want to rush and have regrets later.
Cars depreciate as soon as you drive them off the lot so once you buy it you own
it for the next three to five years whether you like it or not. So shop wisely
and take your time. Knowing the financial expectations up front will not only
save you money but time in the search process which brings us to step #2. Once
you've determined your budget, you then want to go online to research which cars
are available in that price range. You may already have something in mind like
a sedan or sports car or sport utility vehicle. If you know what type of vehicle
you want that will make the process easier. The best way to determine the type
of vehicle you need is to look at your own lifestyle. If
you're young, single and have an active lifestyle you may want a pick-up truck
or sport utility vehicle. If you're a parent hauling kids around you may want
to consider a minivan, station wagon or crossover vehicle. If you're more mature,
have a successful career, and the kids are grown up, a more luxurious car may
be more suitable. The
cars we choose should reflect the lifestyle we're currently living to maximize
their service and convenience to us. Someone who enjoys camping and off-roading
on weekends may find a sports car fun but not suitable to fit his or her needs.
Or a parent who has 2.5 kids and a dog may not find a sedan suitable. You get
the point. Make another list and ask, "What do I need my vehicle for the
most?" Once
you determine which type of vehicle you can afford and the one that fits your
lifestyle you can begin your research in many ways concurrently. Watch commercials
on TV by automakers and pay attention to cars you see on the road or in parking
lots. However, it is the Internet that has become a consumer's dream for research
of this nature. If
you know which automaker makes the car of your dreams then go to their site to
start your research. If you don't know their domain address simply go to Google
and type in the company name. Or you can go to online magazines such as www.roadandtravel.com
or www.thecarconnection.com that offer buyer's guides on various products for
consumer review. These reviews are written by professional automotive journalists
who personally test drive the cars and know their stuff. These reviews will be
very helpful in your search. Once
you've read the reviews and compared notes on the models you're interested in,
go back to the automaker sites of choice where you can actually build your own
car online with all the options you want. Their sites are designed to help you
determine financing and monthly costs to ensure you stay within the budget you've
created. This is the beauty of the Internet. Most of your legwork can be done
right from your home computer without spending a cent or investing the time to
drive all over town to meet with dealers. At least for now. Don't
assume this will take a weekend or two to finish unless you have money to burn.
Buying a new car is a process, one that takes time and energy. If you want to
do it right and be happy with your purchase, just follow these initial steps and
you'll find the rest wil flow quite naturally. Speaking
of which, in our August 1 issue, we'll discuss going to the dealership, dealing
with salespeople, and negotiating the deal. It's much easier than you think. Part
Two: Eliminating the Fear Factor
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LINK: RTM Road Test Reviews
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