Shopping for a Car: Shopping for a Car

So You're Shopping For A Car

(ARA) - For many Americans, a car is the second largest purchase they make. Advertisers devote millions of dollars to convince us that we deserve to own the hottest set of wheels. The same people who used to yell, "I want my MTV!" are now shouting, "I want my SUV!"

But step inside a dealership, and confident car shoppers are like deer in headlights when confronted by aggressive sales people, confusing financing decisions and a fear of buying more than they can afford.

Get Your Records Straight

One of the first steps in financing a car is to get a grip on your credit rating. Unless you intend to pay with cash, you will have no secrets from the car dealership, finance company or auto insurer. A poor credit history can result in a higher interest rate or even loan disqualification. Also, bad marks on your credit could flag you as an insurance risk, translating into higher premiums.

Armed with knowledge, you can determine if your loan will be approved, and at what interest rate, and also catch any glitches that could be making your credit history look worse than it is.

Cut Your Premiums Down To Size

Before you buy a car, find out what it will cost to insure it. Get car insurance quotes and calculate your insurance needs on the Internet. Each state has different requirements when it comes to auto insurance, and we'll leave it up to you to learn what your state requires. But every state has some sort of financial responsibility law that says you need to take care of any accidents you might have.

To Buy Or Lease, That Is The Question

Buying a used car could benefit the buyer in several ways:

* The original owner of the car received the depreciation hit. The market value of the new car decreases from year to year. An average 30% of its value within three years from the time it was bought, so buying their car would save you a lot of money.

* Unlike purchasing a new vehicle with high insurance fees, you will receive a lower cost of insurance if you choose to buy second-hand cars.

* Although buying new and used cars both provide loans, lease, or money-saving the majority of dealers who sell used cars often have shorter loan terms.

* If your investment is decided based on appearance and gas mileage, choosing a used car would guarantee the value and reliability it has provided over the years.

* A used car would provide your dollar more flexibility. Compared from buying a new car that would eat all your finances, buying a second-hand car would allow you to purchase other accessories such as air conditioning that would cost approximately US$200 to $900 extra.

Buying your used car could waste your money if you fail to do your research, compare dealerships, and be aware of the car’s market value. Be a wise used-car buyer.

When you lease, you're paying to use a car. Your payments cover the cost of the vehicle's depreciation while you drive it, rather than its purchase price. If driving a new car is more important to your lifestyle than owning one, leasing is definitely for you. However, if you put a lot of miles on a car every year, it may end up being smarter for you to buy. Consider your personal expectations and financial situation when reviewing the pros and cons of each:

Buying Offers:

-- A chance to trade in that old clunker.

-- Ownership and equity in the car.

-- Control of your wheels. If you want to add eight speakers or take out the backseat, go ahead.

-- No penalties if you don't hold up your end of the maintenance agreement, although you will want to service your car to enhance both its service to you and your ability to sell it in the future.

-- No mileage limits.

-- Payments based on the value of the car, not its depreciation. That may mean higher monthly payments than with a lease.

Leasing Offers:
-- A cost-effective alternative to buying a car every few years.

-- An affordable way to drive a car that you may not be able to afford to buy. Monthly lease payments are generally less than financing payments.

-- A maintenance contract that requires you to keep the car in good shape and not make any alterations to it.

-- A factory warranty that almost always covers the car for your entire lease, so major maintenance isn't your financial responsibility.

-- Annual mileage limits (about 12,000 to 15,000) with significant penalties if you put more miles on it than the lease stipulates.

-- Payments that may be income tax deductible if you're leasing the car for business. Ask a tax advisor for details.

-- Penalties if you terminate the lease earlier than agreed. Charges vary.

Financing Is The Next Step
Whether you buy or lease, be prepared to walk away from the deal if you aren't convinced you're being offered a fair price. Do some homework before you walk in -- car salespeople are amateur psychologists who'll get inside your head if you let them, all in the name of making a buck.

"If they see you drool over a leather interior or if you don't know the Kelley Blue Book value of your trade, they've got you right where they want you," Hunstad says. The Internet is a good resource for your research. Use Edmunds.com to comparison-shop and find each model's true market value, i.e. the price of the car in your area. It's usually a different number than either the invoice price (what the dealer paid) or the sticker price (what the dealer wants you to pay).

Once you've got those numbers down, try IHateFinancialPlanning.com's loan calculator to help you compare interest rates, monthly payments and overall purchase price. Don't get emotionally attached to your car salesperson or the loan officer at the car store. Keep this a business decision. Shop for the best interest rate at your local bank or credit union, or use online banking to comparison shop.

Buy A New Car: Do You Really Need It?
You have this strong urge to buy a new car. You just can't resist it.My advice is go drink a glass of warm milk and then lie down. Chances are that when you do wake up, the feeling will have passed and you will have saved yourself a fortune.However if you still feel that you urgently need to buy a new car visit a web site that talks about pollution and the way we are slowly but surely suffocating ourselves to death. A look at some of those really grim predictions in environment sites should help a great deal in ridding you of this ailment called "buy a new car at all costs."If this still doesn't work, remind yourself that it is futile in this life to compare yourself with your neighbor or the guys in the office, because some wise person told us that there will always be those greater and lesser than yourself, no matter how many of your neighbors you prove a point to. Chances are that the real reason why you want to buy a new car is that somebody you know bought one in the recent past.When all this fails and you find that your body temperature is still rising and it is like a fever is threatening to break forth, make your way as quickly as possible to an online car buying site, or rush to the dealer downstairs (or nearby).Are you there now? Feel better already? Especially as you take in all those dazzling new models you have been dreaming about? You're not alone. Buying a new car is a terrible epidemic that is on the rise in the United States and man other places in the world.

How To Save Big Money On Repairs And Auto Parts

We all know it is cheaper to fix things yourself. It is the same with a car or truck. The biggest expense with any repair is not the parts, but the labor. It is not uncommon for repair and service shops to be charging $60 to $70 per hour of labor. And they round to the next half hour or hour for any repair. Just go to any new car dealer and ask to have your windshield wiper blades replaced. They will charge you 10 times the price of replacements at your local auto parts store. So anything you can do yourself to save will be a big help. The purpose of this article is to show you some things you can do on your own and how to get the lowest prices on parts so you can save big and put your money towards something better than fattening your local auto dealers pockets.

First off is routine maintenance. Routine maintenance consists of items like oil changes, tire rotations, and similar. Oil changes are a must at every 4000 to 5000 miles for most every car. Do not go by what your dealer says. They want to rev up your maintenance plan and have you doing more than is required. Instead, use your owners manual. If your car did not come with one, than buy one off of Ebay. The owners manual will give you exact recommendations for every service and when and what should be done. For oil changes use Walmart. They charge around $15 for a oil and filter change and will lube your chassis at the same time. They will also check your tires and change your air filter if you desire or need it. They have the best service for the lowest price and at $15 its better to have them do it than do it yourself. Expect to pay twice this at a new car dealer.

It is also a good idea to check your tire pressure at every gas fill up. A tire pressure gauge can be purchased at Walmart or any auto parts store for a few dollars. Proper tire pressure will prolong the usefulness of your tires and help ensure better fuel economy. To most people a under inflated tire is pretty obvious, but a over inflated tire can be just as dangerous as it can lead to blowouts and loss of traction especially in wet conditions (hydroplaning). Also, check your tires for nails, punctures, slashes, anything that could be wrong with it. If you need new tires, be sure to shop around and avoid the new car dealer as they will have a huge markup on them. For instance, 1 ZR Goodyear tire for a 2002 Ford Mustang GT was $289. The same ZR tire with a different make (Kumho) was $100 installed and balanced (the $289 at the dealer did not include installation or balancing. Shop around and look at discount stores. Also look at Costco, Sams club and BJs for tires. If you have an older car and do not care about matching the exact style you can always go to your local junk yard and buy an entire set for dirt cheap. You would be amavzed at what you might find there. A friend of mine picked up 4 tires for a 1999 corvette for $150 and the tires only had maybe 10,000 miles on them if that.

Lights and lighting on your car are an item that is routinely overlooked. If your lights are dim you could have a battery charge, alternator or dim, cloudy lenses. These are all easy to fix. A battery should be checked for its ability to hold charge at least once a year (more in extremely cold climates). An alternator can be replaced very easily, or if you do not feel comfortable a local mechanic can do it. Do not do this at a new car dealer as they will charge at least 300% more. A good tip is to go and buy the part at your local auto parts store and then inquire with the counter clerk as to a mechanic that they recommend to install it. You will save a lot and it will be professionally done. They will probably even come to your house to do it. As to your headlights, turn on your lights. If they are dim, is it the bulb or cloudy lenses? If it is the bulb, the cheapest replacements can be found at Walmart or on Ebay. It is recommended you go with brighter Xeon bulbs as they are only a few dollars more and increase brightness and night visibility by over 20 percent. If it is cloudy headlights there is a new headlight repair and restoration kit that will restore the lenses to new. This will save you big over replacement as the average plastic automotive lens costs $250 to replace.

Checking your fluid levels routinely is a good idea. A lot of cars now will do this for you and will even alert you to when it is time to perform a certain service. It takes 2 minutes to unscrew the oil cap and pull out the dipstick. On older cars you should also look under the cap. Is the oil really dirty, sludge like, or have white in it? These all indicate something needs to be done. The first two mean it is in dire need of an oil change. The latter with the whiteness or light chocolate look means you have a blown head gasket and coolant is leaking into the engine. That is really bad and requires major repairs and can be the result of running a car too hot. Fill all fluids to the fuel full line or indicator. By routinely checking your cars fluid levels you will be ahead of the game and keep your car running better and for much longer.

Another great idea to keep service costs to a minimum and save you big at the same time is to buy 1 to 3 year old used cars with around 30,000 miles on them. Then drive them until you get 100,000 miles on it and replace it. Most major repairs rarely occur before 100,000 miles with proper routine maintenance. Use and follow your owners manual. It was written by the ultimate expert, the people who built, designed and tested your car.

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