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Buying a Car: The Need to Know

Buying a Car: The Need to Know. Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012. Selecting the Appropriate Vehicle. Taylor Meyer. Purpose School Job Parents had lent you a car Family New Car vs. Repair. Recognize the Need.

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Buying a Car: The Need to Know

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  1. Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012

  2. Selecting the Appropriate Vehicle Taylor Meyer

  3. Purpose • School • Job • Parents had lent you a car • Family • New Car vs. Repair Recognize the Need

  4. Work involving construction, farming, transporting materials, or driving over rough terrain • Truck • Jeep • Land Rover • Hummer The Car to Fit Your Lifestyle

  5. Consider if one has a large family, provides carpooling or other transportation, or if one is a small business owner • Minivan • SUV • Full Size Van The Mid-Size Vehicle

  6. Ideal for the small family, business travel, the desire for a fast vehicle, look of the car, or better handling and gas mileage • Sedan • Luxury Car • Sports Car The Car

  7. Smart Car • Fiat • Hybrid • Car • SUV Fuel Efficiency

  8. The Budget Matthew Spanovich

  9. Examine one’s personal financial position • Calculate expenses • Gasoline • Unexpected car maintenance • Utilize financial calculators to determine budget and price range Personal Finance

  10. Researching the Market Taylor Meyer

  11. Car in Mind • Internet • Research the Brand • Websites • Kelley Blue Book • Consumer Reports • Car and Drive • Auto Zone • CarFax Research

  12. Print Source • In-Depth Analysis • Creditable Sources • Quality Sources include: • Consumer Report • Car and Driver • Motor Trend • Auto Guide • Sunday Newspaper Research

  13. In-Person Research • Dealerships’ Deals • Feel out the Car • Ask for the CarFax • Recall History Other Forms of Research

  14. Dealing with the Dealership Doug Martin

  15. Those TV Commercials

  16. Research, Research, Research • Kelley Blue Book • Get financed before you shop Before the Dealership

  17. You are the ultimate deal breaker • Sticker price vs. Price you should pay • NEVER impulse buy Walking into the Dealership

  18. Bring someone with you • “Forget” payment options • Make the decision over multiple days, even weeks Showroom Anxiety

  19. Do not drive anything you are not considering buying • Check all major systems • Diagnostics check • Overall convenience and comfort The Test Drive

  20. The 4 Square

  21. Dealers will get you on the defensive • Do not settle for anything less than what you want Trade Value

  22. Sticker price vs. Price you pay • Understand you will be paying for more than the cost of the car Car Price

  23. Wiggle Room • If you give, the salesman should as well Down Payment

  24. Affordable • Do not overlook a 10-20 dollar increase Monthly Payment

  25. The Contract

  26. Finding the Right Financing Matthew Spanovich

  27. Leasing vs. Buying • Dealership vs. Institution Financing • Paying Cash • Down-Payment • Rebate or Dealer Interest Rates Overview of Financing

  28. Benefits: • Down Payment and Monthly Payments • Upgrading your car • Bank Loans • Drawbacks: • Car Rental • Mileage and other restrictions • Higher insurance costs • Closed-end vs. Open-end Leasing

  29. Benefits: • Owning the vehicle • Free of restrictions and penalties • Insurance rates • Drawbacks: • Down-payment and monthly payments • Risk of an upside-down loan Buying

  30. Most simplistic approach • Most expensive approach • Back-End Business Scheme • Dealerships receive big bonuses for signing buyers to higher interest rates • The dealership may not have your best interest in mind Dealership Financing

  31. Shop around • Start with one’s personal bank • Other banks • Other lenders • Negotiate all the details, but do not sign • Go to the dealership with this knowledge Institution Financing

  32. Eliminate monthly payments • Interest and finance fees • Easier to sell the car later on • Do not empty your savings Paying Cash

  33. At least a 10% down-payment on an old car • At least a 20% down-payment on newer cars • Increasing your down-payment can significantly reduce the overall cost of the car The Down-Payment

  34. Dealers make you pick one of the two • The low interest rates typically only apply to older, slower-moving models • Generally, dealer rebates pay off more Rebate or Special Dealer Financing

  35. Handout • 10 Steps to Buying a Car • Resources • Any Questions? Conclusion

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