Jesus Pimp

I've never bought a car before. I've always driven family cars(we have four). Since they're family cars I can't always go whereever I want with them. Now that I graduated college and have a job, I want to save up and buy my own car. Can someone tell me what I need to know when buying a car, how I should pay for it, what car insurance company to choose etc..? Any other info would be appreciated.

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Stare At The Sun

Two words. Invoice Pricing. Go like 2 hundred above invoice, and be a dick about it to, make it very clear that you can/will go elsewhere.

I wouldnt buy a ford, or most anything domestic, my family has only had problems w/ our domestic cars. (just my .02, no flame war please.)

Also, go @ the end of the month, cause they are more likely to deal with you, as they want to get all the $$ they can

Other than that, if you get a brand new car, you should get a really low apr, newer, you'll have a higher apr, but a lower cost of the car. *shrug* just do research and weigh the options.

BUt shop around, and be a dick, dont be afraid to walk out, you're not there to make friends w/ these people, you're there to get the best deal on the car, w/ your hard earned money. So dont let them jerk you around. just be a stickler about that stuff and you'll be fine.

Dont forget to tell us what you do

aintyoboyfriend

don't do any of this. first I would do a little research online. Figure out two or three cars that you are interested in. Then, once you have narrowed that down, go drive each of them. Make it clear that you are starting the process, and that this is an information only trip.

Once you narrow down what you like about each car, go online to edmunds.com and get the invoice price. You can also select to receive email quotes from local dealers. Do that. Make sure to note that you are buying the vehicle within so many days, and you want to be contacted by email only.

Then collect your quotes, whoever has the lowest, call them and try to negotiate down a little lower. That way you insure that you are getting the best pricing.

I highly suggest that once you have narrowed down what car, and what dealer at what price, you go to your bank or credit union, and find out what they offer for financing on the vehicle. That way when you go to the dealership, you can check out there financing, but if it is not suitable or they are not willing to work with you to get the lowest rate, you have a back up plan.

Whatever you do, don't be a dick. Car salesman are not all out to screw you. Granted you aren't trying to be their friend, if you are a dick you are not going to get good service down the road.

If you have any other questions, feel free to post up, and I will do my best to answer them.

If you need help figuring out what kind of car you want, let me know what you are looking for in a car and maybe I can make a few suggestions.

hope this helps....

Jesus Pimp

Thanks for the advice! Here are some more questions..

How much down payment should I try to have? Does it vary place to place? Always finance? Never pay it in full? What's the difference between financing and leasing? Which is better?

I think for my first car I'm looking to spend 8-12k max. I'm looking for a non-american fuel efficient car probably Japanese or German. What do you recommend?

Would a used car with low milage be better for my first car?

What about car insurance? Which are current best companies? I'm 24 years old, never had an accident or speeding tickets, etc.. How much would I have to pay for car insurance?

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lakefire

i'm in the same spot as you jesus pimp...

but i'm 21 and have no credit history and a shady job.

i'm probably going to spend around 14k on an s-10 after rebates....I've got my insurance through USAA (but your dad has to have that for you to get it, or you have to be in the army).

i'm probably going to have to pay 1200 for 6 months of insurance (ouch) for the s-10. right now i pay about 600 for 6 months w/ my 92 bonneville. I called up USAA and already went to see what kinda payments I'd have and that crap....been shopping around and getting prices.

i've gotta have a co-signer so it's a pain in the ass, and i'm goin' to have to pay an arm and leg for APR...but, gotta start somewhere (they don't start ya at the top).

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.lakefire

eaglek96

Buying a car is tough. In my opinion (and everyone has their own) it is best to buy a one year old car if you can find them. Most of the time they can still be found under warranty, and you save a good chunk of change. I bought a 2001 taurus in the fall of 02 and was able to extend the warranty through 5 years and 100k which covered basically all repairs. Many people will argue that you are taking a chance because there is probably something wrong with it, but often times the one year old cars are program cars or something like that with relatively low mileage. They also are often loaded with options.

The reason I say one year old is because the depreciation of a car is pretty significant within the first year. You can buy a car brand new for say 20k, and if you tried selling it back the next day its only worth 18k. I bought my car 1 year old with 19k miles on it for 15k where brand new it was almost 23k. In this economy, used cars are going cheaper because everyone is buying new cars.

As far as financing goes, I got my financing through ford credit. They use local banks in the area and offer pretty good rates. I put $3000 down which covered the tax (in MA it was 5%) and registration fees. Leasing wasn't an option for me because I can't see paying for a car and not owning it in the end. Most leases have a buy-out clause in them, but for many people, the buyout is often too high. The other drag about leases is that you have to watch out how much mileage you drive. If you like getting a new car every 2-3 years, then maybe leasing is for you.

In my experiences, most car salesmen are willing to work with you. If you act unprofessional with them, expect the same back. The best way to approach it is to treat them like human beings, but make sure they know that you come with some knowledge. Make sure you know enough about what you want to buy that the salesmen don't throw in any curves. For used cars, know the value of the car, and bargain back and forth. You're likely to get a good price if you work at it. For new cars, know the invoice and see how close they can get to it. With a new car, you have a little more leverage because most of the dealerships carry similar cars. Used cars vary from place to place.

Good luck in your adventures. It does suck, but once you do it once or twice, you'll get a feel for it.

aintyoboyfriend

I agree. I would suggest a nice late model used car. If you can afford to pay cash, that would make the used car make more sense. If you are financing, new car rates are going to better than used car rates. With all of the incentives right now for financing, you should be able to get a pretty good rate as long as you have good credit.

as for suggestions, try an Acura Integra, Honda Civic, or maybe a Golf (though they are kinda expensive). Hyundai cars are suprisingly good these days, and can be had new relatively cheap.

Jesus Pimp

Any car insurance company recommendations? My parents use All-State, they get charged an arm and a leg.

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username

When I bought my car in June here is what I did:

1) Looked at all the cars I wanted to get printed out all the information I could on them from edmunds, kbb, etc. and then went to the dealership and drove them. If one of the dealerships told me I couldn't drive the car, I figured they didn't want my money so I left.

I told them I was starting the process of looking at cars and needed to drive them all. When they asked for a timeline I said somewhere around 2 months (I had started looking in late April, early June).

2) Once I had narrowed down the cars to around 3 I went and test drove them all again and then talked numbers with them. I told them I was getting closer, but had some more looking to do. One of the dealers told me that buy his car was different from other cars - so I left - and was down to two cars to choose from.

3) The last two cars I looked at on the same day one right after the other. I drove the first car, got a price from the dealer and told him I had to drive the other car. If the other car wasn't what I wanted I would drive right back to him and buy it. If not I would call him and tell him my choice.

4) I bought a car the same day I drove the last two.

If you feel uncomfortable or ignored at a car dealership - leave. It is a omen as to how they will treat you once you buy the car and try and get work done on it.

As far as payments and such, I paid a little over 1/3 of my car's price after TT+L, I think most sites recomend paying at least 20% upfront to avoid being upside down in a loan.

If you have no credit or very little credit, try and get one of your parents (if they have good credit) to co-sign w/ you so you will be able to get the lowest APR possible.

With insurance, call everyone and get a price.

drawerfixer

That's the best bet, and what I did. Perhaps even meet the seperate insurance agents, and go with the one you feel comfortable with and trust.

Car wise - most of the other posts have covered it. Hondas and Toyotas will last you a lifetime, but they are dull, pretty drab cars, IMHO. I wouldn't _avoid_ American cars, but certainly research and drive each car you are considering. I don't know much about banking, so talk to your loan guy, I guess. Good luck!

--edit-- I was lurking in the other forums and saw this.

I didn't read through it all, but it looked helpful.

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pagliachi2003

Another good idea may be to check with your insurance agent to see how much it will be for each of the cars you are considering. Some cars can be pretty high compared to others, especially for a young male.

shakran

Finance: I don't like leasing. You pay a crapload of money for 2-3 years while enduring mileage requirements (usually you're only allowed to drive 12-15k per year, and if you go over you're hit with penalties) and at the end of it you still don't own a friggin' car! I'd rather direct those monthly payments toward something that I will get to keep when I'm finished paying for it. Financing just means getting a loan - you can finance a leased or a purchased vehicle. You will have to finance unless you have all the money for the vehicle saved up already.

"Would a used car. . . be better?"
YES! for 12k you could get a VERY nice used car (Acura Integra/Legend/maybe even a TL or comparable cars (see http://autos.yahoo.com/consumerrepor...src=autos/eyak) ). For the same price in a new car.. . you might be able to get a barebones Tacoma with absolutely no options whatsoever.