Buying a new vehicle is a major puchase for everyone I know. But it helps going in if you have done a little research and are prepared to make a deal. I asked Jody Victor to give us some more tips on buying a new or used vehicle without making too many mistakes.
Jody Victor: Buying a new car should be a fun and rewarding event. Do yourself a favor and think ahead before you buy. Here are some more tips to make your next vehicle buying experience a great one.
Buying unnecessary extras. Dealerships often try to sell you extras that boost their profit margin but are a waste of your money. They can include rustproofing, fabric protection, paint protectant, or VIN etching, in shich the vehicle identification number is etched onto the windows to deter thieves. Don't accept those unnecessary services and fees. If you see those items on the bill of sale and you haven't agreed to them, simply cross them out and refuse to pay for them. Vehicle bodies are already coated to protect against rust. And recent reliability surveys show that rust is not a major problem with modern cars. You can treat upholstery and apply paint protectant yourself with good off-the-shelf products that cost only a few dollars. If you decide you want VIN etching, you can buy a kit to do it yourself for less than $25, instead of the $200 that some dealerships charge. Also think twice about an extended warranty. It can cost hundreds of dollars. But if you buy a model with good reliability or if you expect to have the vehicle only for five years or less, it often isn't worth the cost.
Not researching the value of your current car. You could get a great deal on your new car but lose all of the savings - and more - on your trade-in. That's why it's critical that you research the value of your current car before buying your new one. Find out what both the used-car retail and wholesale prices are, so that you'll know what you should be able to get if you trade it in or if you sell it yourself. Typically, you'll get mor emoney by selling it, as long as you're willing to put in the additional effort. By knowing your vehicle's true value and by sticking to your price during the negotiaions, you can get your car's full value, whether you trade it in or sell it yourself.
Not having a used car checked by an independent mechanic. When buying a used car, condition is everything. Even the most reliable vehicle can turn into a lemon if it's poorly maintained. Before you buy a used vehicle, have it scrutinized by a repair shop that routinely does diagnotic work. A thorough diagnosis should cost around $100, but confirm the price in advance. A good mechanic should be able to tell if the car has been in a major accident or has a hidden but costly problem. Ask for a written report detailing the car's xondition, noting any problems found and what it would cost to repair them. You can then use the report in your negotiations with the seller to adjust the price accordingly.
Thanks, Jody! We'll be sure to follow your advice.