The time has come to sell the ball and chain, and get into a car that you can afford. How to define “a car that you can afford”? This is going to get some of you really upset, but it means a car that you can pay cash for. Financing and leasing is not the same as owning.
No doubt, you’ve heard the argument that having a used car will just eat up money with repairs and upkeep. This is true for a few…but if you are driving an automobile that is half or more of your mortgage payment, it is time to rethink this logic.
If you came to the conclusion that it is time to free yourself and get rid of payments, here are some helpful tips when it is time to start looking for a good used automobile that gets you where you need to go. (You’re not a teen any more – flashy looks are for kids… rich kids.)
1: Decide Your Price Range, Save Money, and Pay Cash
Would you allow a stranger to hold a gun to your family? Then don’t let some dealership or private seller hold an emotional gun to your family’s finances, and sell you into an automobile beyond your budget. Decide on the amount of money that you can spend and put a savings plan into effect. Luxuries may have to go for a while, you may have to sell some things, or get a part time job – but you can put the money together. Paying cash has five distinct advantages:
● Cash puts you in a stronger negotiation position
● Keeps negotiations simple when discussing with the seller
● No need to worry about interest rates
● Removes dependency on dealership and bank financing
● Encourages you to stick to your budgeted amount
2. Determine what kind of car you want
For most people this is the easiest part – until they start looking at the price tags of Corvettes, BMW’s, and Escalades.
Sometimes you can get a great buy on one of these models if you do a lot of research, but for now you may consider what is best for your life-style and pocket book. I encourage purchasing a vehicle with great gas mileage, no matter how much you drive, that keeps insurance costs low. Locate three cars that fit your criteria. Knowing that you have options will put you in a stronger bargaining position, and will give you a fall-back position if your top choice falls through.
3. Search for used cars
Use a number of different sources to conduct your search:
● Online classified ads on AutoTrader.com or Craigslist
● Daily newspaper classified ads
● Fleet dealers on Autofleet.com
● Listings on college and business bulletin boards
● Word of mouth: Ask all your friends if they know of used cars for sale.
During your search, you’ll come across cars from dealerships, private parties, and taxi companies and possibly even used rental cars. Research is key when determining where you buy a vehicle. (Remember, dealerships almost never lose when selling a car; dealing with them is like punching yourself in the face with someone else’s fists.)
4. Check it inside and out
This is an important step to finding problems with a used car. Check out the exterior of the car and look for dents, scratches and inconsistencies with the paint. Be sure that the bumpers fit nicely on the body of the car. Once you get in the car, be sure the doors and windows open and close easily and completely. Check the headlights, brake lights, windshield wipers, air conditioning and heating system, as well as the upholstery. Though you may not be a mechanic, finding problems and inconsistencies can help you narrow your car search or negotiate a lower price on a used car.
5. Rev-er-up for a test drive
You won’t be able to take a test drive in all kinds of driving conditions, including rain, sleet and snow, as well stop-and-go traffic and interstate conditions, since you probably only have a small window of time to make an offer. Instead, ask to drive the car in town, as well as on the highway. You may also want to see how the car starts after it has been parked for the night. The ultimate goal of the test drive is to help you determine whether you are comfortable with a car’s size and operating systems.
6. Mechanic is a must
If you are happy with your own inspection of a car; the next step is to get it checked out by a trustworthy mechanic. A professional should be able to tell you about maintenance, and check for upcoming repairs. If you do not have a trusted mechanic that can offer this service at a reasonable price, please check my referral on my website.
7. Negotiate the price
If your mechanic finds that everything is in good working order in a used car, you may feel comfortable offering the asking price. Or you may feel like you can negotiate a better price based on your research and some problems with the car. Regardless of what you decide, it is important to stay within your price range so that you don’t wreck your determined budget. You want this process to be a win-win for yourself and the seller so be fair, and have the guts to walk away. Don’t get your heart tangled up with a machine!
8. Update Insurance and title
Make sure you update the new car’s essential documents when the sale is completed. You will need to contact your car insurance company, as well make changes regarding taxes, titles and tags. If you do not have good insurance coverage, contact Brandon Ream with Stewardship Insurance. Brandon is a broker and can shop the least expensive (and highest rated) insurance as well as get you the coverage you need. Your local Motor Vehicle Department should be able to give you all of the information you need to make the appropriate changes with registration, tags, and title.
(Note: If you are not experienced with purchasing a used vehicle, you can get help from a trusted auto broker. If you do not have a friend or family member who has won by using a professional broker, I recommend Joseph Morales with Joseph Morales – Auto Buyer Consultants. Joseph has helped me and many others find the vehicle they are looking for and can afford. (Tell him that Victor sent you.)
