Personal Finance Chapter 23. Steps in the Car Buying Process. Identify Your Needs and Wants. Think about what you NEED from your car. How much will I drive? Do you plan to haul a lot of people or gear? Will I take the car off-road? What features would you WANT if you could afford them?.
According to the Automobile Association of America (AAA), the dealer’s invoice is approximately 90% of sticker for compact and subcompact vehicles, 84-87% of sticker for luxury vehicles.
Negotiate the price of the new car separately from the price for your trade-in.
You have a lemon if, in the first year of ownership or 12,000 miles:
The rule requires dealers to place a sticker, called the “Buyer’s Guide” on all used cars they offer.
Depreciation- a decline in the value of property due to normal wear and tear.
Not all cars depreciate– very old vehicles in excellent condition may appreciate in value if people value them as collector’s items.
You should plan for unscheduled repairs, like flat tires, broken belts, and leaky hoses that can be costly.
Once paint has begun to oxidize (permanently lose its color and shine because of chemical reaction with the air) it is very difficult to restore the original gloss.
A polishing compound is a substance that can smooth out surface scratches, scuffs, and stains
You also want to repair dents and paint chips before rust ahs a chance to take hold.
When stopped in traffic, hold the vehicle in place with the brakes rather than engaging the clutch, to avoid excessive wear on the clutch.