What should I know about buying a car?

[beckms]

We're probably going to take the plunge sometime in the next few months: our first new car.

DF's 1994 Jeep up and died on us two months ago (although I was kind of relived to not go through another winter in that deathbox), leaving us with only my trusty 1992 (!) Subaru to get us both to work, school, and in between.

It's getting kind of difficult to manage with just one car, what with us living in the boonies, DF working 30 miles away, and me having erratic schedules at the hospital. At the moment we're just going day-to-day, trying to put off that loan for as long as possible, since the idea of adding another loan to our already mountainous debtload kind of makes me feel ill...

We've narrowed it down to the Honda Civic, and DF has been looking online for prices and loan info and such...

Surely it can't be as simple as just going to the car store and taking one of the shelf, though, right?

Any tips? :confused:

[Gumbeaux]

Edmunds (http://www.edmunds.com/new/2006/honda/civic/100653381/photos.html#) is a great place to start. You can get tons of information on options, pricing, specs, cost to own, etc. The review section is very good also.

You need to deal "up" from the dealer paid for the car not "down" from the sticker price. You can email sales managers and ask them for thier best quote on the car you want. You can search dealer inventories on the internet. Don't be afraid to have a Civic built to order if you can't find one with the options you want. Your DF seems to be going in the right direction with this.


http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com//pictures/VEHICLE/2006/Honda/20028986-E.jpg

http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com//pictures/EI/2006/Honda/2006.honda.civic.20083663-E.jpg

[zwieback]

Well, it can be as simple as going and "taking one off the shelf" but, if you do that, you'll surely get taken. If I were you, I'd look into all the different options, colors, etc. Know exactly what you want when you go in. Also, shop around. Don't just go to one dealer (unless of course, there really is only 1 dealer). Some dealers also have a sort of bidding thing online (we did this with our car). You go online and submit to them what you're willing to pay. They'll email/call you back and say yay or nay. The only thing with that is that they call and try to push up the price a bit but, honestly, they'll do that right in front of you on the lot. It's easier to hang up the phone than it is to get away from them on the lot. Just be as prepared as possible -- both with car information and mentally.

NEVER give the dealer the keys to the car you drove there with, unless you have a deal and are trading that car in. Don't let them talk you into buying something you don't want or don't need. You have the right to just walk off the lot. We did that a couple of times when the salesman was taking way too long to get some information or get the key to test drive the car. We went onto one lot ready to buy the car, we just wanted to take another test drive. They guy kept going to the back to try to find the key, yet he'd never tell us what he was doing (he kept coming up front where we were). So, we left. He completely lost out on a sale that night.

Just remember YOU have the power in this situation, not the salesmen. They are for the most part VERY pushy. So, don't go into the dealership looking like a kid in a candy store, either. They'll latch right onto that. I wouldn't even let them know that you're kind of in a bind with the car situation. Just make them think you're in the market but, not necessarily ready to buy just yet. Make them work for their sale. :p

Good luck! It is an annoying process but, one we all go through at one time or another.

[KathrynY]

Ditto the Edmunds recommendation. We bought our first-ever new car two years ago, and I was surprised at how painless it was. Thank goodness for the internet! Once we chose a model and test drove it, I went home and looked on Edmunds to see what the average price paid in our area for that vehicle is. I looked online to see which dealers in our area had the model and color vehicle we wanted in stock. Then I emailed 5 of them to ask for their best price on the vehicle. I took the lowest quote of the 5, went back to the dealership where we did the test drive and asked them if they could beat that price, and they did! :D

Good luck - hope it's a painless process for you!

[mkc]

When we bought our last 2 cars, we did all the dealings over the Internet via web searches and e-mail to the respective dealerships. One was a new car, one used, but both from dealers. In each case, we searched the inventory of at least 3 dealers within reasonable driving distance, e-mailed about the specific VIN were were interested in, and asked them for their best deal. This kept emotions out of it (a good thing in car buying!) Just do your homework ahead of time - what model, trim level, options, colors you want.

I did happen to trade my car in for the new car we bought, but all the negotiations on the purchase were complete before I even got to the dealership and had I not gotten what I thought was fair on trade, I would have kept it and sold it privately. I did not mention the trade when we negotiated on the car.

Do be prepared to walk if they try a "bait and switch" on you - like saying they'd made a mistake, etc. and the price is now higher. Also take a printout of the e-mail with the agreed-upon deal with you so they are less likely to try something like this. Keep in mind the car is available at multiple dealerships and you can always go elsewhere.

I purchased an extended warranty for the used car the same way. The dealership we purchased it from did not sell that brand of car. I just e-mailed 3 dealerships that did and asked for their best price, outlining exactly the warranty we wanted. You can do the same with a new car purchase - initially you can turn down the dealership's offer of an extended warranty and shop around on your own. As long as the car is still under the original manufacturer's warranty, you can purchase a manufacturer's extended warranty from any selling dealership.

Happy shopping!

Michelle

[blazedog]

There are a couple of issues -- Edmunds and CR are excellent sources.

Choice of car -- You can't go wrong with a Honda IMO -- it is an excellent car, holds its value. I was taught to buy a car, keep it for as long as it is reliable and then get replace -- Hondas completely fit that model.

New or Used -- As you are probably aware, the depreciation on a new car is enormous in the first year or two. You can save money by buying a used car -- on the other hand, you may be buying a car that wasn't as well maintained or has other issues -- There are Dealer Certified Cars which basically take a lot of that risk out.

Bargaining -- The nice thing about a Honda dealership (at least IMO) is that there are limited options -- so it's really easy to price the models between dealers. Edmunds has some great articles on how to shop for a car -- it was an eye opener to me -- especially the bizarre ways they warp the financing to make a car seem affordable to people -- boy did I laugh when the Toyota dealer tried to find out what monthly payments I was willing to spend -- as IF I thought of the cost of a car in that way -- sure let me buy that Lamborghini with affordable $500 monthly payments for the next 20 years -- and thank you for buying up the loan on the last car I got suckered into financing for 8 years so that I now owe way more than the value of the car -- :D :D That's called being upside down in car finance terms.

Financing is something that you should have in hand before you start shopping IMO -- The dealers make money on the loans so if your credit is good, you will probably do better elsewhere. AFTER you have negotiated the price of the total car then you can discuss trade-ins and/or financing because otherwise you are never going to be able to figure out the shell game -- the dealers will play games with the figures because they figure once you have made an emotional commitment, it's easier to get you to forget about the small details. If you have good credit, I would think that a bank or credit union would have better rates -- on the other hand, with slow car sales, dealers are offering incentives -- you just need to go home with the figures and work out the better deal. FWIW, dealers don't make much money on the actual sale of the car (unless you are the kind of sucker they love -- forgot what they call those kind of people). They expect to make up that cost by servicing since most people have those done at a dealer -- especially when the car is still in warranty.

I always pay cash for a car as I bank the monthly payments and then have the cash available in the bank where it has been earning interest -- even if you take out car loans, it's really a good idea to keep making payments to yourself after the loan has been paid off so that eventually you (theoretically wouldn't have to finance).

[Slowcooker]

We just purchased our first brand new car, a Toyota Corolla. Test drive the Honda before you buy. While sitting in the '06 Civic, we could not see where the nose of the car ended at all- not good when trying to park! Also, the elevated speedometer cluster on the dash obstructed my view. Just my opinion, of course. Everyone fits each car diffently! We also test drove the Mazda 3. It was sporty, but it had a rigid, brick-like ride, and DH's leg hit the console- that drives him NUTS! Also, MPGs weren't as good as the Corolla. We also test drove the Hyundai Accent. It was very nice for the price, but the ride wasn't as smooth as the Corolla. Also, Hyundai re-sale value is poor. We drove the Corolla last, and didn't want to get out of it. We still don't! I felt like Goldilocks- This one was Just Right!
Good luck with your purchase- there's nothing like a brand new car :D

[Peweh]

Rebecca - you've gotten great advice re Edmunds and bargaining I won't reiterate, just wanted to say you might also want to consider Nissan. I bought a 1999 Altima brand new and it's still getting 30 MPG 7 years later. DH mostly drives the car now as he commutes but man, I like the pep in its step!!

[cangoss]

This is a really good time of year to buy a car, because the 2006 models are on their way out and the 2007s are coming in. You should be able to get a good deal on a 2006. My parents just got a Toyota Solara that was a dealer test model, with about 100 miles on it, for about $1000 less than the dealer invoice price.

[Aubergine]

i've never bought a car (nor did my family) without consulting CR, and we've never been steered wrong, not to make a terrible pun. my '92 Accord wagon is still on the road (130K) and people are always asking if it's for sale...

i dunno about the other service, but what i do know is that knowing to ask for the dealer's invoice, and offering 2-3% over that, saved me thousands.

also, as someone else mentioned, it is a good time to shop for a new car, but i'd still wait a bit. the new cars usually get to the showrooms in late aug/early sept., at which point the dealers are VERY motivated to sell the unsold cars.

i dunno whether you have the time and stamina for what i did, but i visited the showroom and found a car that was perfect for me, but i did NOT sign on the spot. i made them sweat it out for 3 weeks, by which point they knew i would buy it at the right price, and they needed to get it off the lot.

i also was paying cash, although they tried very hard to "give" me credit, lol, which is where they make a LOT of their $$.

one caution: if the car has been on the lot for a year or more (like mine was), demand new tires, b/c the rubber degrades. i didn't know this, and had to replace the tires at 30,000. other than that, the car was never in the shop until it was almost 10 years old. i love that baby.

if you are financing, be sure to research that aspect carefully.....

[aggie94]

Rebecca, I started a thread a couple of years ago when we were buying my car that had some helpful information in it as well, although much of it has already been mentioned here. We ended up getting a fantastic deal on our Nissan with just a little bit of research and due diligence on our part. Let me know if you have trouble finding it.

i also was paying cash, although they tried very hard to "give" me credit, lol, which is where they make a LOT of their $$.

We had already arranged financing through our credit union, but we got offered a lot of enticing incentives to finance through Nissan. So we did. And made one payment, then promptly refinanced through our credit union at a lower interest rate. :)

In other words, it can't hurt to hear their financing pitch, even if you already have your financing arranged. You might get a good deal, then you can still refinance through your bank or credit union.

[lindrusso]

We drove the Corolla last, and didn't want to get out of it.

Ditto the Toyota. We thought we liked our old cars (Mazda, Volkswagon, Saturn) just fine until we drove a Toyota. The Toyota is a dream to drive - and that's saying something considering it is a minivan - it's actually much easier to drive for me than my husband's Mazda 626.

I can't speak for Toyota sedans, but I have a much easier time seeing out of the Toyota Sienna than many other cars I've driven - I'm short, so that's a consideration for me.

Either way, a Honda or Toyota would be an excellent choice.

Count me as another who always consults Consumer Reports before making a major purchase.

If you don't have a subscription to CR, PM me and I can help you out. :)

Alysha

[mcgeiger]

We just bought our Honda Civic this spring, and love it! I would say do the CR thing (usually libraries carry the car guide), and then go test drive with no intention of buying that day.
Then I called every dealer in the range I was willing to drive (about 100 miles which was ~12 dealers), and emailed them (you will get different offers) and told them exactly what I wanted (color, style, model, everything). I asked their best price and told them they had one shot. I ended up getting my car for over $1000 less than Edmund's/MSRP, and some places were actually giving me quotes above the MSRP by that much :eek: . Don't forget to ask that ALL fees (like delivery) are included in your quoted price.

[memartha]

Rebecca,

I've had a Honda Civic, an Accord and now I have a Pilot and DH drives a Ridgeline. Obviously, we like Hondas! I know DH emailed a couple of dealers and I *believe* he really liked the customer service from Herb Chambers, but let me check with him about that and any other tips he can offer. He is all about cars and would be happy to give you any info. you want.

Martha