Shopping for a car can sometimes seem like an act shrouded in mystery. There is the emotional desire a glossy, powerful, or adorable car inspires. There is the lead-ball-in-the-stomach dread of spending too much, or getting swindled. There is the sweaty-palmed, dizzy anxiety of hammering out details with a dealer. There is nothing to be afraid of.
Actually, buying a car is a pretty simple process. First, it comes down to a question of money: How much can you afford to spend? Before you begin to shop, sit down with your spouse and decide on a number you are both comfortable with. Armed with this figure, you'll avoid test-driving, agonizing over, or falling in love with a car you can't afford.
After deciding how much to spend, start doing research. Just as trying on every gown in a bridal salon doesn't really help you find the dress of your dreams, test-driving every car in your price range won't help you find your best bet. It simply muddies the issue. Log on to the Internet, grab a couple of car magazines, talk to your friends, pay attention to commercials, and begin to decide what you like. Start with the simple stuff, coupe vs. sedan, convertible vs. liftback, sport utility vehicle vs. truck, standard vs. automatic, economy vs. luxury, etc. After you know what kind of vehicle you are looking for, start making trips to dealerships, all the while focusing on the following criteria:
Safety.
For most couples,
safety is high on the list of priorities. If kids are going to be in the car, safety is likely to be issue number one. If so, you'll need to know how a model fares in crash tests. Does the car come with air bags? Do you need side impact beams? Take into consideration how much you'll be driving the car, and the weather and traffic conditions you'll be subjected to.
Gas mileage.
If it's an issue, find out
how many miles per gallon the car gets. This information is on the Monroney Label (window sticker), and also included in car magazines and on Internet sites. Remember to examine both freeway and street mpg figures. How many miles a day will you be driving the car?
Resale value.
Do you plan to drive your car into the ground (100,000+ miles), or do you like to trade in vehicles every few years? Both practices are perfectly sound,
but if you plan on trading or selling your car in a few years, you'll need to know how well it holds its value. The factors that determine depreciation are typically static: Some models, features, and makes hold their value better than others. However, be aware that depreciation is dependant on what the market will bear. According to blue book, it may be fair to ask $27,000 for a car you purchased a few years ago at $32,000, but you'll have to find someone who puts $5000 worth of "savings" above buying a brand new car with a warranty. Also, if a model is restyled, the value of the old model usually takes a hit. That, however, doesn't mean you shouldn't buy. It just means you should find out what plans the manufacturer has for the model you're interested in, and make your decision accordingly.
You can estimate how a vehicle will depreciate in a number of ways. You can look up blue book and consumer ratings, or check out car and truck resale papers. Finding out what a dealer sells a model for doesn't really help you much. A dealer must factor in costs like overhead, financing, mechanical and cosmetic repairs, and warranty into the asking price.
Style.
Funny how emotional we Americans get about our cars. We truly live in a car culture. As superficial as the styling of a car may seem to be, it's an important factor for nearly every buyer in the market. Remember, you are buying something you need, and will get lots of use out of (it may turn out to be your second home).
You should like how your new car looks, both inside and out. The trick here is to accept that buying a car is folly, not investment. As every car depreciates the moment it is driven off the lot, you need to constantly give the emotional factor of style a reality-check.
Comfort.
Will you need two doors, or four?
How many people will be in your car? Is the comfort of the back seat just as important as the front? Will you be taking long road trips? Do you like the placement of the cup holders, map pockets, stereo, instruments, and interior lights?
This kind of detail may not seem like a big deal, but it is. After driving around with nowhere to put a hot cup of coffee, a strategically placed cup holder starts to become pretty important.
Price.
The easiest factor of all.
If you can't afford it, it isn't your dream car. Hopefully, you've figured out what you can afford, and factored in a comfortable down payment, or estimated a trade-in figure. You know how much you can borrow, and what monthly payments you can handle. Don't forget to get estimates on
how much insurance will cost, too. The value of the car, combined with where you live, your driving record, how many miles you put on a year, and the statistics of how often your model is stolen all factor into the price of insurance. Another reason not to stretch yourself too thin over a Monroney Label: You'll have to pay
tax, title, and registration on top of the price of the car.
Value.
One car costs $3,000 more than the others, but it looks pretty much the same. Wait a minute -- it's already priced to include air conditioning, a rear window defroster, fog lamps, a roof rack, and a cargo net. Some manufacturers have found customers want
value priced vehicles. Value pricing is the practice of making options customers almost always add standard. Other companies believe customers prefer to pick and choose what options they want to pay for, almost like ordering from an a la carte menu.
Either way, most manufacturers offer value packages, which translate to a set price for an allover upgrade. For an additional fee, a base model gets air-conditioning, leather upholstery, fog lamps, alloy wheels, etc. Value packages often work well, unless you don't want the majority of the options included. Find out what options cost, independent of a package, and then decide what works best for you. If you need air conditioning, but don't particularly care about a sunroof, don't pay for one. On the other hand, if it costs $1,500 to add air conditioning, and the value package with air and sunroof is $1,800, it may be a great trade off. Keep in mind, you will almost always have to compromise. Most buyers choose from cars already on the lot, or in some cases, from a nearby dealership. Rarely will buyers have the opportunity to have a vehicle manufactured to their exact specifications. For these "lucky" few, the car may take anywhere from six months to a year to arrive.
Reliability.
Some people joke the name for the ever-adorable Fiat stands for "Fix It Again, Tony." Of course, it's unfair to make such generalizations, and there are undoubtedly Fiats with solid records. The point is, cars often turn into headaches.
Your car should spend most of its time in your driveway or on the road, and not with the mechanic. There are a number of car periodicals that routinely evaluate the performance and reliability of new and used models, so make the most of their research. One caveat: If a model is new to the market, or has just been redesigned, a reliability rating won't be available. In those cases, you should look at the manufacturer's rating overall.
Also note some car enthusiasts avoid purchasing first-year models. They like to let other customers help the manufacturer work out the kinks.
If you're buying a used car, you'll want to know the history. Some people say that after an accident, a car is never the same. Make sure you know whether your used car has been salvaged, (been in a fire, a flood, or totaled -- DO NOT BUY), has had extensive repairs (sometimes a signal that something may still be awry), or had a serious accident. You will also need to verify that all scheduled maintenance has been performed.
Warranty.
If there is one thing you can always count on with cars, it is that
someday, something will go wrong. Whether it's a flat tire, a broken belt, an empty gas tank, or a bigger problem, be aware of your safety net.
What is the warranty? Standard warranties are usually
three years or 36,000 miles, though some are shorter (Volkswagen), or longer (Hyundai). If your car needs to stay overnight at the shop, will the dealership give you a
loaner car? If you buy a
used car from a dealership, does the price
include an extended warranty? If you purchase a
used vehicle from a private seller, are you prepared to
cover potential problems that could arise on your own? These are important things to consider, especially if you are purchasing a model that has anything less than a stellar reliability rating.
For on the road troubleshooting, find out if the manufacturer offers roadside assistance. If not, the fee associated with the Automobile Association of America (AAA) is a small price to pay for peace of mind.