Buying a Car the Right Way
Published by Becky in Advice, Decisions, Faith, How To, Relationships, Stories
Shopping for a new car is supposed to be fun, right? Ever since my car took its last ride before taking a permanent dump in Iowa, Matt and I have been obsessively looking for a new car. When we first started looking, I was really excited. Who doesn’t like the idea of getting a new car? But now, a week and a half later, I am ready to collapse on the floor. I had no idea car shopping could be such a chore and strain on our relationship. If you’re in the same situation as Matt and I, I recommend you read on and prepare yourself for the “joy” of car shopping.
A few months ago, Matt sold his Grand Am in order to get rid of a car payment. My Buick had been paid off since the day I got it, and Matt’s parents let us use their little Festiva as a run-around car. So for a few months, we were living in bliss with no car payment. As we know, that quickly changed when my car broke down and left us stranded in the humid heat of Iowa for 6 hours as we waited for Matt’s dad to come rescue us. The engine was shot. We both decided we were done with my Buick. It wasn’t worth fixing. So that only means one thing: we had to get a different car.
We spent all day the next day after getting home shopping for cars in a larger city, about thirty miles from our home. We knew we liked Pontiac Vibes for their versatility and gas mileage, but they were hard to come by. We got sidetracked and looked at some other cars, but nothing really caught out attention like a Vibe. After hours of looking, my excitement started turning into discouragement. I never realized car shopping could be so frustrating!
We returned back home with our tails between our legs, until we went to a car dealership in our hometown. They had the largest selection of Vibes we had seen anywhere. Buying new was out of the question, but there were two cars they had closer to our price range. One thing we soon discovered about the Vibes was that they hold their value more than most other cars. For a three year old car with 50,000 miles, they were asking only a few thousand dollars less than what was paid for a new car at that time. On top of that, the interior was not as pristine as what we would like, and the car didn’t even have ABS. But being that we knew we can’t afford a new car, it was really our only option at the time.
Each evening for the next few days, Matt and I took several trips to the surrounding towns, only to find a very poor selection of Vibes, if any. Supposedly they are a hot item right now, and they are quick sellers, so few dealerships have them. We kept talking with our salesman in town and had him give us a print out of what our payments would be on the used vehicle. Just for fun, we had him give us a print out of a new Vibe as well. We were shocked! Because a new car has a much lower interest rate than buying used, the monthly payments were very comparable. Because of this, Matt started talking as if a new car was actually a possibility.
Let me give you a little background about our families. I came from a family of eight children. Buying a new car was never even an option for us. And to this day, my parents think that buying a new car is a waste of money, since it depreciates so much as soon as you drive it off the lot. Matt, however, just has one other sibling. His parents believe in buying new because its the only way you know for sure that you are getting a decent car, as well as a warranty to back it up. I don’t believe either of our parents is wrong in their thinking, but it kind of caused some conflict between Matt and I. I like the idea of getting a new car, but I kept asking, “Do we really need a new car?” I could tell Matt was sold on getting a new one, and when he showed me the numbers of our payments and total interest paid, I was convinced. New was the way to go.
So now, a week and a half after my old car died, we have a brand new Pontiac Vibe sitting in our garage. The story I’ve told you is definitely the shortened version. There was a lot of headache involved in making a decision. There were countless times where I felt so unsure about which decision was the right one. There were times when I had a bad attitude because of it. This was the first time in my life that I’ve ever had to go through having to buy a car, and I learned a lot.
If you are in the process of looking for a new car, and like me have never been through it before, here is some advice that will hopefully help you before you start. If someone had told me this before we started shopping, things probably would have gone much smoother.
- Before even beginning to go car shopping, figure out how much you can afford. Matt and I had an idea of what we wanted to spend, but until you actually sit down and crunch the numbers, you are just guessing. Write a list of all of your expenses and add them up. Do the same with your income. Doing this will let you know how much extra money you have to work with each month for a car payment. It’s easy when car shopping to start with a limit and soon find yourself saying “but this one is only $2000 more”. If you start with a definite plan, you are more likely to stick with it.
- Discuss with your spouse who will be doing most of the dealing, and how it will be done. Matt and I hit a major road block here. I was expecting Matt to handle most of the dealing, and I think he expected me to do some as well. There was one time in particular where we were looking at a car we were interested in. I was waiting for Matt to start talking price, while Matt was waiting for me to. We ended up leaving without ever discussing it with the salesperson, and the whole way home we were both in bad moods because of it. Tell each other your expectations before you even start, and your dealing will be much more pleasant.
- Explore all options. When Matt and I started looking at cars, we thought buying new wasn’t a possibility. But by chance we found that the monthly payments and total interest paid between the new and used were nearly the same. We now have a perfect new car with 14 miles on it instead of a scratched used car with 44,000 miles for a difference of only $20 in monthly payments. Not only explore new versus used, but also kinds of vehicles you thought you might now even like. When the Vibe first came out, I thought they were ugly. Matt, however, liked them right away. Over time, I started to like them more, especially after seeing all of the possibilities for use. And when we started looking to buy, and actually test drove one, I was completely sold on it. So don’t pass anything by. You’re looking to spend a lot of money, and its a big commitment. Make sure you are going to be happy with your decision.
- Pray about it. I believe that God wants you to make the right decision, even when it comes to picking out a car. He will direct you while you’re looking. Be listening for that still, small voice. God cares about the small stuff too. Matt and I prayed every day over our car situation, and I believe it’s because of God that we were able to purchase a new car. So don’t forget to pray!
Hopefully with this advice, your shopping experience will go a little smoother than ours did at first.
—
Update: I submitted this to ProBlogger’s: Lists – Group Writing Project. Check it out. I thought Becky had a great list of car buying tips. -Matt
14 Responses to “Buying a Car the Right Way”
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Pingback on Aug 18th, 2006 at 6:23 am
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Pingback on Aug 26th, 2006 at 3:37 am
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Pingback on Aug 26th, 2006 at 10:52 am
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[...] 223. Your Credit Card Can Earn You Money by Mooiness 224. 10 Ways to Immediately Start Saving Money by junger 225. The 10 Best Money Moves You Can Make by FMF 226. Five things I would do if I had $20,000 by Patrik 227. Your Very, Very Best Money Saving Tips by NCN 228. Why I Tithe by Nneka 229. 5 Simple Steps to Get the Most Revenue out of Ad Space by Markus 230. 5 Ways MyMoneyBlog Can Make You $100 by Jonathon 231. Fifteen easy ways to save fifteen bucks by John 232. 5 Advertising Programs that Have Earned Me at Least $1000 by Paul 233. 5 Secrets to Fabulous Financials by Single Ma 234. Four Kinds of Money Making Websites You can Start By Yourself by Peter 235. 7 Personal Finance Tips by Tim 236. Top 10+ ways to Save Money and Help the Environment by David 237. How to Organize Your Debts by Donna 238. Extended Car Warranty Do’s and Don’ts by Stuart 239. Five reasons why you should always buy in lots by Danielle 240. The 10 Things We did to Erase almost $9,000 in Credit Card Debt in Less than 6 Months by Tricia 241. List of Important Financial Documents by Jim 242. 3 Ways it costs more being a man by John 243. Three Reasons Why I Might Be Poor When I Retire by HART (1 800-HART) 244. Buying a Car the Right Way by Matt 245. Got a Dog? Here Are 5 Tips on Saving $$$ & Being a Responsible Owner by Financial Freedumb [...]
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Pingback on Aug 26th, 2006 at 11:33 am
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[...] 223. Your Credit Card Can Earn You Money by Mooiness 224. 10 Ways to Immediately Start Saving Money by junger 225. The 10 Best Money Moves You Can Make by FMF 226. Five things I would do if I had $20,000 by Patrik 227. Your Very, Very Best Money Saving Tips by NCN 228. Why I Tithe by Nneka 229. 5 Simple Steps to Get the Most Revenue out of Ad Space by Markus 230. 5 Ways MyMoneyBlog Can Make You $100 by Jonathon 231. Fifteen easy ways to save fifteen bucks by John 232. 5 Advertising Programs that Have Earned Me at Least $1000 by Paul 233. 5 Secrets to Fabulous Financials by Single Ma 234. Four Kinds of Money Making Websites You can Start By Yourself by Peter 235. 7 Personal Finance Tips by Tim 236. Top 10+ ways to Save Money and Help the Environment by David 237. How to Organize Your Debts by Donna 238. Extended Car Warranty Do’s and Don’ts by Stuart 239. Five reasons why you should always buy in lots by Danielle 240. The 10 Things We did to Erase almost $9,000 in Credit Card Debt in Less than 6 Months by Tricia 241. List of Important Financial Documents by Jim 242. 3 Ways it costs more being a man by John 243. Three Reasons Why I Might Be Poor When I Retire by HART (1 800-HART) 244. Buying a Car the Right Way by Matt 245. Got a Dog? Here Are 5 Tips on Saving $$$ & Being a Responsible Owner by Financial Freedumb [...]
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Pingback on Aug 26th, 2006 at 11:50 am
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[...] 223. Your Credit Card Can Earn You Money by Mooiness 224. 10 Ways to Immediately Start Saving Money by junger 225. The 10 Best Money Moves You Can Make by FMF 226. Five things I would do if I had $20,000 by Patrik 227. Your Very, Very Best Money Saving Tips by NCN 228. Why I Tithe by Nneka 229. 5 Simple Steps to Get the Most Revenue out of Ad Space by Markus 230. 5 Ways MyMoneyBlog Can Make You $100 by Jonathon 231. Fifteen easy ways to save fifteen bucks by John 232. 5 Advertising Programs that Have Earned Me at Least $1000 by Paul 233. 5 Secrets to Fabulous Financials by Single Ma 234. Four Kinds of Money Making Websites You can Start By Yourself by Peter 235. 7 Personal Finance Tips by Tim 236. Top 10+ ways to Save Money and Help the Environment by David 237. How to Organize Your Debts by Donna 238. Extended Car Warranty Do’s and Don’ts by Stuart 239. Five reasons why you should always buy in lots by Danielle 240. The 10 Things We did to Erase almost $9,000 in Credit Card Debt in Less than 6 Months by Tricia 241. List of Important Financial Documents by Jim 242. 3 Ways it costs more being a man by John 243. Three Reasons Why I Might Be Poor When I Retire by HART (1 800-HART) 244. Buying a Car the Right Way by Matt 245. Got a Dog? Here Are 5 Tips on Saving $$$ & Being a Responsible Owner by Financial Freedumb [...]
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Pingback on Sep 15th, 2006 at 8:13 pm
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[...] “Buying a Car the Right Way,” said a guy from a junker. [...]
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I will definitely be doing a post on what I think about the car. My own little “Review: 2006 Pontiac Vibe.” We haven’t even had it a day and it is awesome!
Oh my goodness, what a nightmare. I’ll definitely save this for future reference. Our list is up if you’d like to look… have a great day!
Sounds like its been a very interesting week for you all. Dave Ramsey has some really good advice when it comes to buying vehicles that you may benefit from. I have a post about him if you want to check it out at http://www.dipnoi.org/category/dave-ramsey/
Thanks for the comment on my post.
You’ve really captured how exhausting the car buying process can be and the importance of doing your homework to try and make the process a little easier. Recently, I wrote an article about not negotiating on the car payment when buying a vehicle, as that usually results in the dealer constructing the deal in a way to get them the most money.
Glad to hear that you have found yourself a new car and that you learned a few lessons that will help you and others in the future.
For me, the car-buying process is most exhausting because of the asinine rituals associated with it, which I have yet to find a way to bypass at a dealer. I come in the store, knowing what kind of car I want, and generally having the means to negotiate a price and then say “I’ll be back in 15 minutes with a Cashier’s Check”. After all, I have plenty of money, and I can do the research I need during lulls at work, rather than wasting the hours when I’d normally be asleep (also known as “the hours when car dealerships are open”) on it.
And yet I have NEVER successfully completed the purchase of a car from a dealer in less than four hours at the dealership. Never. Not once. Every time I make an offer, the salesman needs to go sit and drink coffee with his boss for 20 minutes while pretending they haven’t already made up their mind long before I showed up, about where the line is drawn between offers they’ll accept and offers they’ll reject. And even once the offer is accepted, one STILL isn’t finished, because it seems like everyone on the dealership payroll has to have his own little bit of input into the process, and each person requires a long wait before getting things done. I even need to wait for the finance guy, despite the fact that I’m not financing.
Buying a car from a car dealer is like shopping in the old Soviet Union. You’d really really think that folks working on commission would be at least as willing to accomodate the customer’s needs and make him happy as the salary-only drones at a big-box electronics store…but no.
I have to say, anyone who anticipates car shopping with joy has probably never done it.
If I could reliably get good cars that way, I’d just buy from individuals forever. But I got rather tired of never having a car last more than a year, so my only acceptable option is things that are too new to be widely available on the owner-to-owner market.
Matt, have you ever tried the fax or email approach when buying a car? To use this process effectively, you really should know exactly which car you intend to purchase and the options that you want on the car. With that information, you can send an email/fax to each dealership (usually try to direct it to the Internet Sales Manager) and indicate that you are looking to purchase the specific vehicle and are accepting offers from all of the local dealers for the next ‘X’ days. At that time, you will be accepting the best offer and purchasing the vehicle.
It is amazing at how effective this process can be and how some dealers respond. There will be some dealers that continue to try and play games by offering prices for different vehicles or one that does not match your criteria. Others will request that you visit to determine the best vehicle for you. These dealers can be put on the “no” pile since they cannot follow your instructions.
The dealers that are aware of this approach to selling vehicles will deal straight with you and give you their best offer. Once you collect the offers, you have the option of contacting the dealers with the 2nd-whatever offers and ask if they can beat the best price you were quoted. If they cannot, simply pass on them and buy from the dealer with the best offer.
This approach can be quite effective and result in you only visiting the dealership to sign the papers and drive away in your vehicle. The next time you are in the market for a car, give this approach a try and see how it works.
I’ve noticed the best deals in the used car world are found avoiding the used car lot and searching classified for listings from 3rd parties. They let you negotiate much more and tend to have lower asking prices to start. Additionally if you have a trusted mechanic those sellers usually don’t mind if you take it in for a once over.
When I bought my Lexus the dealer was giving me zero flexibility. He dared me to find a better deal in town. Sure enough, some guy was looking to sell his two year old model for just a little more than the dealer offered for trade in…and $5k less than the dealer was asking for the same car on their lot.
I am glad that car shopping is done for a while! I drive a 1989 ford festiva. It gets me to work and back and the gas mileage is great. I would imagine that it will quit someday. I will definitely keep all these ideas in my head. Thanks for all the tips and ideas!