Tips to Buying a Car

By: Steven Anderson

I need a car. I've been a pedestrian for too long. I need
information. I'll hop on the web. Search for "car buying
guides." Whoa! Over 15 million sites/pages! Refine my search.
"Free first time car buyer guides" and narrow it down to only 4
million. That's about as refined as I can get right now. Look
over the first page of my results, chose some links with names I
recognize. Open some pages. Lots of interesting articles. Let's
see if I can pull together a cohesive list.

What type of vehicle do I need? Notice I wrote "need" not want?
I want a cool car, but this is a major investment and cool
doesn't really last that long. Do I buy new or used? What kind
of driving am I really going to be doing, and in what kind of
conditions? How much can I reasonably spend for monthly
maintenance? How much can I spend on a loan or lease payment?
Should I buy from a dealer, an auction or private sale? How's my
credit rating? Where should I buy insurance? Lots of questions
to answer, and probably some I haven't included here.

Before you search for that cool car," decide exactly what your
needs and wants are. Don't buy what you want, buy what you need.
Don't get into a cash bind because you spent more than you can
really afford because the "cool" factor fades fast but those
monthly payments continue. Review your budget to determine how
much you can really afford. That means not only the car payment,
but insurance and an estimate of your monthly maintenance (gas,
oil, etc.) Check your credit so you have an idea of what type of
loan you can qualify for. Decide on a firm price (payment or
full-purchase), because dealers and salespeople will be doing
their best to get more out of you. Be firm and stick to your
dollar amount. If financing, decide on a realistic maximum
payment you can make. If possible, check with your bank to see
what type of loan you qualify for.

With the internet, it's now much easier to compare vehicles.
Take the time to check out some websites that offer information
about vehicles and compare. Don't just rush out and buy the
first car you see. Remember, your vehicle is a major investment
and unless you can change vehicles every year, this car will
probably have to last you 4 or 5 years. Be choosy. Look at the
pictures, sure, but READ the information. Check to see if the
dealership offers web discounts (that is, if you buy from them
they will offer some discount for using the web).

Educate yourself about vehicle pricing. Dealerships have to make
a profit; otherwise they would not be in business! Simple
economics. Dealers will negotiate, but YOU have to be prepared
as well. The dealers and salespeople know their bottom line on
any vehicle. Again, check the web for information regarding
pricing. Ask family and friends to help you learn about vehicle
pricing. There are many factors that most people don't even know
about.

Make certain you qualify for insurance. Check out your state's
department of motor vehicles website and learn the minimum
insurance necessary. Check around the web and you'll find many
major insurance companies with rate comparison features. Use
those resources. Be very aware that your past driving record
will affect your rates, but also if you are a first time buyer,
be ready for slightly higher rates to begin with. After all, the
insurance company is really gambling on your not making any
claims against the insurance. Think about the type of driving
you will be doing and review the "extras" offered by the
insurance provider. Also, the type of vehicle you are looking to
purchase will affect your rates as well. Older cars usually mean
less safety features, so rates will be higher. Your vehicle
insurance is just as important as your health insurance.

A short note here about car dealerships (and not just the new
vehicle showroom guys). I personally have not had good results
buying from a private seller. Way too many variables and
basically no recourse if something isn't right. Dealers have
certain rules and restrictions they must comply with, such as
title registration time limits, the lemon law, and the "buyers
remorse" (3 day changed my mind) rules. Dealerships must be
licensed and follow the laws; private sellers often don't.
Dealerships also can provide a wider range of options than a
private seller. Go to your state motor vehicle or department of
licensing website and educate yourself. What you don't know can
hurt you.

Also, there is a list called the Customer Service Index (or
something similar) which each car maker maintains for
dealerships. The ranking indicates who a dealership satisfies
customers not only in sales, but also in service. Basically, go
to the manufacturer's website, search for customer service index
and then navigate the website to find that manufacturer's
criteria for a great dealership. Yes it takes time, but this is
a major investment. Family and friends can help here as well.

Once you have decided what type of vehicle you want, and which
dealerships you want to check out (always try at least 2
dealerships, don't just settle on one!), take someone with you,
preferably someone knowledgeable about the vehicle you have
chosen (a family member or friend you feel comfortable with).
That person will probably ask some questions you didn't think
of! I'm a wimp when it comes to negotiating, but my hubby isn't,
and he knows about cars. I let him do most of the questioning,
even though I was the one purchasing the car. Believe me, it
helped, because he asked questions I really never thought about.

Last, but certainly not least, TEST DRIVE THE CAR! Sounds
simple, but it is very important. Just because you found what
looks like the car of your dreams, it may still not be right.
You need to be comfortable behind the wheel, your sight lines
should be clear, you should be able to judge your surroundings
based on the size of the vehicle, and you should be able to find
all those little areas of vehicle maintenance you can do
yourself.

Remember, a vehicle is a major investment. It should be chosen
with care and deliberate thought. There a many factors to
consider and, ultimately, you are the one that has to pay for
any mistakes in your choice.

About the author:
Steven Anderson is the Reservations Director for Hawaiian
Discount Car Rentals, specialists in car rentals
Kauai. He has personally researched and experienced many of
the Hawaiian activities and as described above.