I decided to start a new series of posts titled, "How to Buy a Used Car." This is the first installment of that series, or simply Step 1.
Starting at the beginning seems like such a no-brainer, but surprisingly many folks make the mistake of starting at about step 5 or 6, or even worse at the very end. So, we are going to start at the beginning and work our way through the used car buying process. So by now, you must be wondering just what is the first step in buying a Used Car, is it reliability reports, interest rates, pre-purchase inspections??? Not yet on those...
Step 1. Know Thine Own Self
Yes, YOU are the first step in the car buying process. What are YOUR needs? What are YOUR wants? What is YOUR credit score? What is YOUR budget? Step 1 is all about YOU.
You need to ask yourself what it is that you need from the car that you purchase. Do you need 4-Wheel Drive? Is gas mileage a priority? Do you need room for a certain number of passengers? Do you haul anything that might need special consideration? Do you need room for a baby seat? There are lots of questions that you can ask yourself about your needs, and you need to determine your needs BEFORE you start shopping for a car.
You need to ask yourself what it is that you want from the car that you purchase. Do you want a Sunroof? Do you want an entertainment package? Do you want any aftermarket accessories? Do you want a specific color? There are again, lots of questions that you need to answer about the things that you want from the car that you purchase.
The key to those 2 questions is that you need to determine which items are needs and which ones are wants. Needs are the things that you have determined are things that you can't live without, and the wants are things that you can take or leave if you can't necessarily find them. The reason that you should ask yourself these questions is simple. IF YOU DON'T MAKE THESE DECISIONS, THEN WHO WILL????? Is a pushy salesman going to make these decisions for you? Is your teenager going to push you into buying a car that they think is "Cool"? If not you, then who? Many dealerships prep their sales people by telling them to, "Sell the Sizzle, not the Steak." Their goal is to make the buying process as emotional as possible. Many times buying on emotion can have horrible results in the long run. I can't tell you how many times we have seem folks that are looking to trade a vehicle that they bought just a few short weeks ago because it just doesn't meet their needs. They didn't buy, they got sold.
You need to know your credit score. This has been advertised so much on TV and radio and internet that there really is no need to explain why. There are several sites that you can find out your credit score for free. Use them, and find out where you stand. Your credit score will better prepare you for your purchase. Your score will also help determine if you need to secure help from a cosigner.
You need to ask yourself what's your budget. You need to determine what YOU can afford prior to buying. Don't let someone try to tell you what you can afford. You need to sit down and do your own math. Work out your budget, and remember to consider that your insurance may go up as well. Work out what you are comfortable with, and then shop with that number in mind. How much can you afford to pay down? You need to let your lender or the dealer that is helping you secure financing how much you can afford to pay down. Your down payment is just as critical in calculating your monthly payment, and your credit approval as your credit score. Remember when some stores used to offer lay-away service? You couldn't put items in lay-away without at least putting some money down for them to hold it for you. Unless you have a very high credit score, you should plan on putting some money down toward your purchase.
Always remember, it's your money. Shop wisely.
Step 1 in the car buying process...
Know Thine Own Self.
Wednesday, March 24, 2010
Tuesday, April 14, 2009
Carfax vs AutoCheck
We here at Leonard Motors have been using AutoCheck for several years now. We have always felt that AutoCheck was more complete and accurate. Well, now we have proof. Check out this link to an investigative report in Atlanta.
http://www.cbsatlanta.com/investigates/19086976/detail.html
Carfax advertises more, AutoCheck gives more.
We will continue to use AutoCheck to protect us from buying a bad car, and to protect you from buying a bad car.
http://www.cbsatlanta.com/investigates/19086976/detail.html
Carfax advertises more, AutoCheck gives more.
We will continue to use AutoCheck to protect us from buying a bad car, and to protect you from buying a bad car.
IRONIC???
Is it just me, or does anyone else find it ironic that the cheapest cigarettes in town are sold at Walgreens?
Tuesday, March 10, 2009
Let's Get Real About Car Buying
Recently I saw an article posted on Yahoo about how to "Deal" with car salespeople and how to "turn the tables" on them when they try to do their "tricks".
LET'S GET REAL!!!!
Here's a better idea....
Don't DEAL with someone you can't trust.
Why would you spend your hard earned money to buy anything from someone that you don't trust to treat you right?
Why would you give them the opportunity to be telling jokes about you right after you leave?
Why would you want to "help" them to continue to expand their business and do more of the same to others?
Is any car really worth all that?
You should do business with someone that you trust. Someone that isn't trying to rip you off, and then laugh about it later and tell all their co-workers and friends about you. Ask friends and family about their experiences, and who they trust. Ask your co-workers. Ask as many people as you can about where they would reccommend. Call the Better Business Bureau and see if there are any complaints about their business. Check websites that log customers experiences. Research, ask, and research some more.
But whatever you do.......
Don't enable these type of people to continue these practices.
Save yourself, and others from being treated like that.
LET'S GET REAL!!!!
Here's a better idea....
Don't DEAL with someone you can't trust.
Why would you spend your hard earned money to buy anything from someone that you don't trust to treat you right?
Why would you give them the opportunity to be telling jokes about you right after you leave?
Why would you want to "help" them to continue to expand their business and do more of the same to others?
Is any car really worth all that?
You should do business with someone that you trust. Someone that isn't trying to rip you off, and then laugh about it later and tell all their co-workers and friends about you. Ask friends and family about their experiences, and who they trust. Ask your co-workers. Ask as many people as you can about where they would reccommend. Call the Better Business Bureau and see if there are any complaints about their business. Check websites that log customers experiences. Research, ask, and research some more.
But whatever you do.......
Don't enable these type of people to continue these practices.
Save yourself, and others from being treated like that.
Wednesday, March 4, 2009
Financing Questions ??????
There has been alot of talk in the news recently about banks and financing. Alot of folks have been hearing that it is more difficult to get financing and that the banks are tightening up. We have had quite a few customers asking us about the current condition of bank financing.
The simple answer is.....well, there isn't really a simple answer.
If you have good credit, you won't have any problem getting financing. Actually, if you have good credit you may find that right now you will see the lowest interest rates ever available. Banks still want business, and they REALLY want the business of folks with good credit ratings.
If you have credit with some blemishes, then you already know that even a year ago you were facing a more difficult time securing financing and the rates would be higher. For the folks that have some blemishes, MOST financing companies are wanting you to be vested in your purchase with a good down payment which they determine by your credit score.
For folks that have had some really bad luck...if you couldn't get financing a year ago, you probably aren't going to be able to get it now either.
The bigest impact we have seen is that first time buyers with limited credit history are needing to have a co-signer to help them get established. There were some sources before all this banking problems that would finance first time buyers with limited credit history without a co-signer under certain circumstances, but that has shrunk. Notice that you don't see the offers being made at dealerships anymore for special programs for "First-time Buyers."
Our advise, if you need a car and you need financing, don't be afraid to TRY NOW. Rates can't possibly get any lower than they are now (CAN THEY?). If you are turned down, they don't hit you with a baseball bat; they just say no. There's no humiliation or shame, because bad things sometimes happen to good people. It's O.K.
The simple answer is.....well, there isn't really a simple answer.
If you have good credit, you won't have any problem getting financing. Actually, if you have good credit you may find that right now you will see the lowest interest rates ever available. Banks still want business, and they REALLY want the business of folks with good credit ratings.
If you have credit with some blemishes, then you already know that even a year ago you were facing a more difficult time securing financing and the rates would be higher. For the folks that have some blemishes, MOST financing companies are wanting you to be vested in your purchase with a good down payment which they determine by your credit score.
For folks that have had some really bad luck...if you couldn't get financing a year ago, you probably aren't going to be able to get it now either.
The bigest impact we have seen is that first time buyers with limited credit history are needing to have a co-signer to help them get established. There were some sources before all this banking problems that would finance first time buyers with limited credit history without a co-signer under certain circumstances, but that has shrunk. Notice that you don't see the offers being made at dealerships anymore for special programs for "First-time Buyers."
Our advise, if you need a car and you need financing, don't be afraid to TRY NOW. Rates can't possibly get any lower than they are now (CAN THEY?). If you are turned down, they don't hit you with a baseball bat; they just say no. There's no humiliation or shame, because bad things sometimes happen to good people. It's O.K.
Monday, March 2, 2009
DOC Fees ???????? PLEASE !!!
What's the deal with these places that charge "doc" fees?
Can you buy a car without the documents?
The answer is no.
The documents ( Bill of Sale, odometer statement, Buyers Guide, Registration form, etc.) must be filled out in order for you to buy any car. State and Federal laws require certain documents must be filled out. So how can you be charged a doc fee? Why would you be charged a doc fee?
We have never charged a doc fee, and never will. It's an insult.
Even when a car is advertised, and it has small print at the bottom that says the above price includes $x doc fee; that is still an insult.
Should you have to pay for financing paperwork to be filled out? We don't think so. If the dealer offers financing options in house, and wants to charge you for doing the paperwork, tell them to not do the paperwork.
Don't ever pay a doc fee.
Tell them you'll buy the car without the paperwork. Of course, you have to have the paperwork, but so does the dealer. They have to have the paperwork just as badly as you do. You shouldn't have to pay for something that they can't leave out.
The only thing you should ever HAVE TO pay above the price of the vehicle is....
State Tax
Local Tax
State Tag Fee
Registration Fee
All of these are charged by the State. None of the fees or taxes go to the dealer. The dealer has to collect them, and then file them with the State.
If you decide to purchase a warranty with your vehicle, then obviously there would be a charge for that. But, you are getting something for that money. You buy an extended service contract, it costs extra; and that makes sense.
Next thing you know we'll start seeing dealers dress-up in funny costumes trying to get people to buy a car.
Was that Elvis?
Can you buy a car without the documents?
The answer is no.
The documents ( Bill of Sale, odometer statement, Buyers Guide, Registration form, etc.) must be filled out in order for you to buy any car. State and Federal laws require certain documents must be filled out. So how can you be charged a doc fee? Why would you be charged a doc fee?
We have never charged a doc fee, and never will. It's an insult.
Even when a car is advertised, and it has small print at the bottom that says the above price includes $x doc fee; that is still an insult.
Should you have to pay for financing paperwork to be filled out? We don't think so. If the dealer offers financing options in house, and wants to charge you for doing the paperwork, tell them to not do the paperwork.
Don't ever pay a doc fee.
Tell them you'll buy the car without the paperwork. Of course, you have to have the paperwork, but so does the dealer. They have to have the paperwork just as badly as you do. You shouldn't have to pay for something that they can't leave out.
The only thing you should ever HAVE TO pay above the price of the vehicle is....
State Tax
Local Tax
State Tag Fee
Registration Fee
All of these are charged by the State. None of the fees or taxes go to the dealer. The dealer has to collect them, and then file them with the State.
If you decide to purchase a warranty with your vehicle, then obviously there would be a charge for that. But, you are getting something for that money. You buy an extended service contract, it costs extra; and that makes sense.
Next thing you know we'll start seeing dealers dress-up in funny costumes trying to get people to buy a car.
Was that Elvis?
Saturday, February 28, 2009
Pre-Loved Car vs. New Car
While there's nothing like being the first to sit in a new car's leather seats and inhale that fresh-from-the-assembly-line perfume, it's an expensive romance.
If the idea of saving thousands of dollars is more thrilling to you than that new-car smell, you'll find your heart's desire in the used car market.
And there's no beating the price. "People don't think of depreciation as an out-of-pocket cost, but it is," says Philip Reed, senior consumer advice editor at Edmunds.com. "There's a steep drop off in [value] in the first year, and 30 percent depreciation by the end of the third year."
For example, Edmunds looked at the Lexus GS 430 and GS 450. "The first-year depreciation on the new car is $14,000; if you bought a two-year-old model, the depreciation is $3,000 in the first year of ownership," says Reed.To offset the first year depreciation on a luxury car, your monthly payment needs to pay down at least $1,167.00 worth of principal each month for the first year. If not, you will be officially upside down in your car loan. To pay down that much in principal, your monthly payment total principal plus intrest would have to be $1,483. Thats $17,803 in payments for the year at 6% intrest. WOW, thats alot of money.Flip that kind of budgetting around in a car that has already taken that first year hit, and you can be several thousands of dollars to the good.
If the idea of saving thousands of dollars is more thrilling to you than that new-car smell, you'll find your heart's desire in the used car market.
And there's no beating the price. "People don't think of depreciation as an out-of-pocket cost, but it is," says Philip Reed, senior consumer advice editor at Edmunds.com. "There's a steep drop off in [value] in the first year, and 30 percent depreciation by the end of the third year."
For example, Edmunds looked at the Lexus GS 430 and GS 450. "The first-year depreciation on the new car is $14,000; if you bought a two-year-old model, the depreciation is $3,000 in the first year of ownership," says Reed.To offset the first year depreciation on a luxury car, your monthly payment needs to pay down at least $1,167.00 worth of principal each month for the first year. If not, you will be officially upside down in your car loan. To pay down that much in principal, your monthly payment total principal plus intrest would have to be $1,483. Thats $17,803 in payments for the year at 6% intrest. WOW, thats alot of money.Flip that kind of budgetting around in a car that has already taken that first year hit, and you can be several thousands of dollars to the good.
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