Posts Tagged ‘ new cars ’

How to Save Money Buying a Car – New or Used

Do you want to save money when you buy a car? Don’t go out to a dealer, at least not right away. First do some homework, get the information you need–then head out looking for cars.

You’ve heard it said, “knowledge is power”, and no where is that more true than when it comes to buying a car. Here’s the main point: you’ll be going into a car dealership that not only has the cars you’re interested in, but it’s also a place that’s filled with people who generally have more knowledge about their vehicles than you do. From a financial standpoint, that’s a disaster waiting to happen. The greater the knowledge gap, the more likely it is that you will pay too much for what ever you buy.

How do you get the information on the car you want to buy? In the old days, you probably had to hook up with a “car guy”—one of those people who seems to possess an almost supernatural understanding of all things automotive. But today we have the internet, and that’s really leveled the playing field. There are websites dedicated to providing not only free information about all kinds of cars, but even the best car dealers to buy from!

That last point shouldn’t be taken lightly either. There are different kinds of dealers—independent or franchised—and there are also car supermarkets. Which one you work with will have an impact on the deal you get on the car you buy.

Finding the best deals on new cars

8 Reasons Why You Should Pay Cash for a Car

By Kevin M

One of the biggest line items in a typical household budget is car expense, and one of the reasons it’s so large is because of car loans. After decades of easy credit, we’ve been conditioned to think of car loans as a normal part of the car buying process. I have a car, therefore I have a loan.

But is that the way we should be thinking? Are there deeper risks to having a car loan that we tend to gloss over? I think so. The loan you sign on for when you’re safely employed can quickly become unsustainable after just a few months of unemployment. And with job losses and extended periods of unemployment becoming the “new normal” we should be changing our assumptions about car loans.

What are some of the reasons you should avoid a loan and pay cash for your next car?

A loan puts your car at risk

Unlike credit cards—where the lender has no specific claim on your assets—it you fall behind on your car loan, your car can be repossessed. This reason alone should remove any casual notions we have about car loans. They’re higher risk than almost any other loan type! Even if your house is foreclosed on, there is an extended period of due process that can take a year or more in many states, giving you valuable time to maneuver. No such protections exist for a car loan; stop paying and the repossession process is pretty swift.
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Getting a Good Car Loan with Less Than Good Credit

Guest Post by Edward Pacheco

Getting a loan on a new car can be easier said than done. In short, lining up financing for that new ride of yours all depends on your credit score. If you have a perfect credit score then you will have no problem getting approved for financing, and getting a great rate.

But if your credit score is less than perfect you might have a tough time getting a loan at all. At best, you might get approved for a loan with a wildly high interest rate. Regardless of how your credit is there are some things that you can do to help ensure that it is steady and constantly rising.

By taking the time to follow a few simple steps you should be able to secure financing for that new car that you have had your eye on in no time at all!
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How to Become a Expert BEFORE You Buy a Car

By Kevin M

If knowledge is power then the lack of it is weakness! Don’t think this message is lost on your friendly neighborhood car dealer! Car salesmen can sniff the knowledge weaklings before they even get into the showroom, and will make them pay more before they walk out.

Not nearly all of us are car experts—in fact most of us are not. But that should never mean that you walk into a car dealership and throw yourself at the mercy of the car salesman in the hopes that he’ll be a straight up guy and give you the best deal possible.

Fortunately, in this day of the internet, any of us can become car experts—or at least better informed consumers—before making the buy. Just knowing the right places to go on the web can raise your car buying knowledge a few notches.

You’ll be spending tens of thousands of dollars on a car—new or used—and just a few hours of research can save you thousands of dollars.

If you’re not a car expert, check out one or more of these before buying your next car.

Cheap New Cars – Are They Worth the Money?

By Kevin M

Yahoo! Autos had a great piece from CNN Money last week. 10 great cheap cars gives a list of ten cars for well under $20,000.

A few on the list for 2011, with their given price ranges, include:

Ford Fiesta, $13,320 – $17,120
Chevrolet Cruze, $16,275 – $21,975
Honda Fit, $14,900 – $16,410
Kia Soul, $13,300 – $18,495
Honda Civic, $15,605 – $25,490
Nissan Versa, $9,990 – $16,900

Looking at the low end prices on these cars, it’s clear that they begin to compete well with better quality used cars, and for that reason alone they merit further investigation.

We should never buy anything on price alone, but as expensive as new cars—and even used cars—are these days, these prices are…interesting.

But what are we getting at these prices? Are they actually decent cars that will last a few years, or are they throw-aways—the ultimate manifestations of “planned obsolescence”—destined for the scrap yard after five years? Do they come with important options—like engines—or are they your basic “Flintstones Car”???

Your Kid Doesn’t Need a New Car

By Kevin M

Comedian Jeff Dunham says people who buy new cars for their kids have it all wrong. 16 or 17 year old kids, he emphasizes, don’t need a new car–they need a bumper car. And he was talking about his own daughter!

I agree!

The closest thing to a legitimate sounding opinion I’ve heard for buying a brand new car for a kid is for safety, that new cars incorporate the latest and best safety features and it’s worth paying the extra money for better survivability in the event of a crash.

Maybe. But maybe not. I’m not convinced that the newness of a car has as much to do with safety as the make of a car. Think Volvo here—historically one of the safest cars available irrespective of age. I’m also equally certain that when human beings are feeling the itch to spend money, nearly any decent sounding justification can and will be used to support the decision, reason and logic be damned.

What are some compelling reasons for not buying a brand new car for your kid?

Your Worst Enemy When Buying a New Car

By Kevin M

When buying a car we can wrap ourselves in numbers, comparisons, interest rates and all kinds of other research projects that have a mathematical sound to them. But often, when it comes down to the moment of truth, the car we buy, how we buy it and how much we pay are determined more by our emotions than by the numbers.

This is also very likely our biggest problem!

You see, buying a car is first and foremost a business deal. When emotions take over, it becomes something entirely different. At that point, the possibility of making a major financial mistake is magnified many times over.

When car shopping, it’s important to remember that you’re not buying a puppy; no matter how much you may love a car, it will not love you back. Ever.

And even though it isn’t a dog, it might still bite back! A few months later, when the emotional high of the new purchase has worn off, and the financial reality of what you’ve allowed your heart to lead you into begins to hit home, you might start seeing some teeth marks in your check book.

By then, it’ll be too late.
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How Car Leases Torpedo Your Finances

By Kevin M

When people are in need of a car, the focus is on the car itself to such a degree that it can seem as if the purchase is happening in a vacuum. After all, there’s always a dealer somewhere who will show us how we can afford something we’re not really sure we can.

Often, that magical way to affordability is through a car lease. It can be used either to enable us to qualify (as opposed to truly afford) a car we otherwise can’t, or to trade up to a more expensive one than we could if we were to buy it outright.

A car purchase is never a completely stand alone transaction. Because of the cost of cars today, buying a new one represents an important component of your overall financial well being. Buying the wrong vehicle, or buying it the wrong way—such as with a lease—can compromise our finances for many years to come.

What’s so bad about car leases?
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Never Go Into a Car Dealership Alone!

By Kevin M

Most of us dislike confrontation. In fact, unless you’re certifiably neurotic you’d probably rather deliver a speech to a large crowd rather than engage in face-to-face confrontation. OK, that was a bit over the top, but I’m going somewhere with this…

Confrontation comes in many forms—disagreements, disputes, debates, arguments, and of course even fisticuffs. But nestled snuggly right up there with the rest of human conflict are contract negotiations. Only the stakes are usually quite a bit higher with contract negotiations, since you can be bound by the terms of the final agreement for years or even decades.

Most of us are keenly aware of this fact, though we might not ever admit it to ourselves in any direct way. We just prefer doing just about anything to negotiating a contract. Call it contract paralysis or what ever you like, but unless you do it for a living, there’s a part of most of us that prefers to shy away from wheeling and dealing. After all, we could lose…

Contract negotiations can run the gamut from simple and tame—like working with a tire dealer who wants to sell you a set of tires for your car more than you want to buy them—to the higher stakes variety where we feel overmatched. Perhaps nowhere are us mere mortal types more heavily outgunned than in a car dealership.

The car dealership ambush

Lower New Car Prices by Refusing Useless Options

By Kevin M

Ever notice how the advertised price of a new car is never the price that you actually get? Have you also noticed that once you settle on a price for a new car with a dealer, that it tends to creep higher and higher before he actually hands the keys over to you?

In previous posts I’ve discussed the dealer dog-and-pony show that’s designed to create enough confusion to weaken your resistance, and that’s a big part of the reason why you’ll pay more. But there are more tangible reasons too.

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Posts Tagged ‘ new cars ’

How to Save Money Buying a Car – New or Used

Finding the best deals on new cars

8 Reasons Why You Should Pay Cash for a Car

A loan puts your car at risk

Getting a Good Car Loan with Less Than Good Credit

How to Become a Expert BEFORE You Buy a Car

Cheap New Cars – Are They Worth the Money?

Your Kid Doesn’t Need a New Car

Your Worst Enemy When Buying a New Car

How Car Leases Torpedo Your Finances

Never Go Into a Car Dealership Alone!

The car dealership ambush

Lower New Car Prices by Refusing Useless Options

Financial Management