Buying a Car

Tim_c · #1 Jun 29, '08, 7:45 pm

Hi. I'm 19 and have a few questions about buying a car. I was given my car as a birthday present when I was 16 so I've never purchased a car on my own. What are the steps in buying a car? How is your monthly payment determined? Is it better to buy from a dealership? etc.. Any other tips would be appreciated.

onetimeposter · #2 Jun 30, '08, 7:06 pm

Research, research, research, research.

Here is a comprehensive list of things you can do:

http://www.cbc.ca/consumers/market/f...car/index.html

I highly recommend you read the entire thing and then afterwards, find another web resource that will give you some solid tips on car buying.

Remember, a car salesman sells cars every single day...you buy a car once every 5 or 6 years....who do you think has the advantage?

So, do what you can to even the playing field....this is YOUR money were talking about here!

good luck

Tim_c · #3 Jul 2, '08, 8:07 pm

Thank you, the website was very helpful, particularly the "dollars and sense" section. Any more tips from anybody would be appreciated.

I'm not so much wondering about how to choose a car (my dad will help with that) but how to buy a car (the steps involved, etc.) Any more websites like onetimeposter's or just tips from your own experiences are appreciated.

allhers · #4 Jul 2, '08, 8:23 pm

It all depends on if you want a new one or a used one and if you plan on paying cash or need financing, you could either go to your bank and get pre approved for a certain loan amount, and they could give you the details of the percentage rate, etc...the montly payment amount, your Dad could probably fill you in on all of that too, if you don't have your own account yet you could open one at your Father's bank, or anyone of your choosing. You could buy a car from a newspaper add, magazines on cars, one you see on the side of the road that is for sale or from a dealership, you could perhaps trade in your car that you have now and lower your payments with a dealer or you could sell the car you have now yourself and use that money as a down payment, like the other poster said, do your research and see which way you'd most likely get more money for your present car.
Take someone with you that knows about cars, if your dad is good at that, then take him. Check the engine, tires, (they have dates on them to tell how old they are.) Check the exhaust pipe that it isn't falling off or terribly black and that it has no holes in it, (if it does it is going to sound really loud.) Make sure nothing like oil is leaking or that it doesn't have any other major problems that you can't easily fix if its used. Make sure that it is in good condition on the outside too, (no rust), and make sure it has good gas milage or else you are going to really be putting a lot of money in the tank all the time. Make sure it isn't considered a sports car or something like that or your insurance would be really high too.
If you pay cash to someone make sure you get a receipt and the title, you'll need the title to register it in your name and to get your own plates for it. (that cost money too.) If the bank finances it for you, they will hold the title until you pay it off.
I've probably told you more than you wanted to know.

Al Masetti · #5 Jul 3, '08, 3:07 am

If your current car drives, then keep it and don't buy another one until it dies.

Instead of buying a car every 5-6 years, buy a car every 20 years. A car is THE most expensive purchase you will ever make, except for a house.

A car should last 200,000 miles.

The more you drive a car, the more experience you will get. Dings and parking lot rash happen; if you have a new car you will have a "heart attack" every time it happens. If you have an "older car", you will take it in stride more easily.

Just change the oil four times a year.

Check the oil level and water level once a week, just to make sure there is nothing leaking.

At each oil change give the car a good look over underneath.

Check for stuff that is loose.

And once a month put the equivalent of the car payments and increased car insurance into the bank and smile.

By deferring car purchase as long as possible, you will save a fortune.

When you do buy a car, buy the cheapest car that you can for the lowest possible price. Stay under $10,000. Find a good mechanic and ask him or her to perform a pre-purchase inspection. There are Web sites that will tell you if the car has been damaged; a lot of wrecked and flooded cars are cosmetized and resold.

Pray over it. Ask The Holy Spirit for direction and guidance. Seriously.

For fun, visit a top of the line car dealer, Lincoln, for example, and ask what they have in used cars. They have all kinds, but only really excellent quality, well maintained cars. They don't take junk cars in trade. Good prices.

takers · #6 Jul 3, '08, 11:52 am

As a 28 year-old I would recommend buying a car in cash, so stick with something in your budget. I say this because, while your first car that's totally your own car, will be an awesome experience it won't be your only car. I myself have already purchased 3 cars since I was 20. The last one was brand new and a pretty penny. Looking back, I didn't need a new car along with high car payment prices. A slightly used car for a lot less money would have been just as fun to own.

deigloriam · #7 Jul 3, '08, 2:59 pm

I'm also 28, and as Dave Ramsey would say, I've paid a lot of stupid tax due to dumb decisions with cars.
First, if the car you were given is running and not costing you a fortune in repairs, consider not buying one now, and banking away some money (both for a car when you need it, and so you can generate wealth). Second, if you do buy, buy used, and pay cash. If you have to finance a car, you can't afford it. Third, the total value of cars, ATVs, boats, etc. should not equal more than 50% of your income.
This might sound like a Buzz kill, but I'd love to go back to being 20 and NOT making all the dumb mistakes I did make.

allhers · #8 Jul 3, '08, 3:51 pm

I thought of something else, look for low mileage.

Once a car gets a lot of mileage on it you pretty much are just getting someone else's headaches usually. Some people take good care of their cars and they still have high mileage, but some don't and then one thing after another begins to go wrong. If you are handy with cars and can pretty much fix things yourself that isn't as big of a problem as it would be for someone who isn't.
I liked Al's, takers and deigloriam's advice too.
(I am going to try to see if I can't find that web site about the way to tell how old your tires are, if I can, I'll post that too.)

allhers · #9 Jul 3, '08, 5:31 pm

Here is the link to the video about the age of tires on cars that
abc news did an investigative report on.
http://abcnews.go.com/Video/playerIndex?id=4826897
If you don't have high speed connection you may not want to watch this until you can watch it from someplace that does, it's rather long but great advice and I suggest we all check the date on our tires, (this video shows you how to do it.) According to them, it can save lives.

AHapka · #10 Jul 5, '08, 10:32 am

Quote:

Originally Posted by allhers

If the bank finances it for you, they will hold the title until you pay it off.

That depends on the state. In Wisconsin (and several other states), you get the title irregardless of whether or not the car is financed (though the bank does have a lien on it).

To the OP: I know many people support paying cash for a car, but I think financing can be an ok move too. You might come out ahead financing a decent used car instead of paying cash for a clunker. I know the ideal is to pay cash, but at your age you probably don't have a lot of cash and need transportation.

That being said, you said you got a car three years ago. Add up what you have spend in the last year on maintenance. Compare that to the cost of your anticipated payments. It might be cheaper to properly maintain your current car instead of buying another one.

In any event take a car guy or woman along with you who knows what to look for (and ideally can show you as well).

AHapka · #11 Jul 5, '08, 10:33 am

Quote:

Originally Posted by Al Masetti

Just change the oil four times a year.

For fun, visit a top of the line car dealer, Lincoln, for example, and ask what they have in used cars. They have all kinds, but only really excellent quality, well maintained cars. They don't take junk cars in trade. Good prices.

I'm going to have to disagree with you in some cases on the oil changes only four times a year. If he puts 40,000 miles a year on the car then that's an oil change every 10,000 miles. Unless he is on synthetic oil, that could be very bad indeed. It really depends on mileage and oil type.

I do completely agree with you on an older luxury car. Many of them have been well maintained, and I find that one is likely to keep a car longer if it has good options. The greater the satisfaction, the less likely you are to sell it because "I don't like this or that." The only downside is that repair expenses can be greater. The only thing you really have to be careful about is buying an older luxury car that wasn't taken care of. Then the cost of upcoming repairs can make it a bad decision. Buy certified pre-owned if you are going to go this route.

**po18guy** · #12 Jul 5, '08, 2:33 pm

Surf the web on car buying. Get a book on car buying. Car selling is a science, so you need to be up on your buying skills before you go mano a mano with someone whose job it is to extract max $ from you.

Never buy a car when you "have" to. You will have regrets.

Know what you can really afford and set a hard limit.

Sell your trade yourself. A trade-in complicates the deal and you lose money.

Get your own financing from your bank or credit union ahead of time.

Do not get hung up on a color or features.

Know which make and model you want

Be ready to walk out of any deal, and tell them. You are not a prisoner. Walk out if your gut tells you.

Never tell the sales person how much you want to spend.

Never agree to a set monthly payment. They'll just extend the time frame until you pay $100/mo for life.

Deal price not payment. Price price price.

Everything a dealer proposes will make them money (model upgrades, after market add-ons, "rust-proofing", "fabric protection", "paint sealant". Some of it may actually devalue your car. Even their financing makes them money.

Extended warranties? Money maker for the dealer/manufacturer. Back when I used to go for these things, I found that not once did I ever need their protection. Option: set up a small side-savings account with automatic deposit. You will be building up you own warranty coverage in your own bank.

As Al Masetti said, if your current car is running well, and not killing you on gas, why not keep it? If you must buy, do so before a crisis arises. A sales person loves nothing more than to hear "my car died and I have to get another" $$$$$!!!

You are in charge of the deal. If you feel that you're losing control, walk! This is only a partial list, and websites and books have been written, many by insiders. They are worth a read and you can borrow many from your local library.

Christ's peace be with you.

Al Masetti · #13 Jul 6, '08, 2:01 am

Quote:

Originally Posted by AHapka

I'm going to have to disagree with you in some cases on the oil changes only four times a year. If he puts 40,000 miles a year on the car then that's an oil change every 10,000 miles. Unless he is on synthetic oil, that could be very bad indeed. It really depends on mileage and oil type.

I do completely agree with you on an older luxury car. Many of them have been well maintained, and I find that one is likely to keep a car longer if it has good options. The greater the satisfaction, the less likely you are to sell it because "I don't like this or that." The only downside is that repair expenses can be greater. The only thing you really have to be careful about is buying an older luxury car that wasn't taken care of. Then the cost of upcoming repairs can make it a bad decision. Buy certified pre-owned if you are going to go this route.

It depends.

Famous expression.

More frequent oil changes are dictated by "harsh use". That could be a lot of short trips so that atmospheric moisture builds up in the crankcase and the oil never gets hot enough to evaporate out the moisture that gets mixed with the oil and causes corrosion or foaming or whatever.

Or, it could be operating in a dusty environment and you want to get that grit out of the crankcase before it causes premature wear to bearing surfaces.

Serious vehicle operators get spectrographic oil analysis testing; they used to be pretty expensive, but the cost may have come down. But they give you an idea of what's going on inside the engine.