<p>As many of you know, I’m graduating from grad school in just a couple of weeks (two weeks from Saturday…EEK!)</p>
<p>My car (a '99 Chrysler Concorde) has been great for these past several years…it’s the car I learned to drive in, went to college and grad school in, etc. Lots of sentimental value. No one drove it for the first several years so even though it’s a 15 year old car it only has about 93K miles and most of the issues are minor or cosmetic. Wonderful first car, but it’s getting a little unreliable and it’s just time for something new. No sense pouring money into something when I could be spending that money on a more reliable car.</p>
<p>Mom and dad have agreed to help me with a down payment in a few months as a late graduation gift (after they can get some money together and I’ve figured out what I can realistically afford wherever I end up.) </p>
<p>I know I want a Crossover (for several reasons), but other than that I’ve got nothing. I also know which features I like, but I don’t know what’s a must have and what’s just bells and whistles.</p>
<p>How do you figure out what’s actually a good buy? I’ll probably be looking to buy used. I want something maybe a year or two old so I don’t have to take the huge hit in depreciation, but I also want something I can drive for the foreseeable future. Any tips? Things to know/stay away from?</p>
<p>Spend a couple days ( at least) going to various car lots/dealers and do some test driving. Try different brands, styles that are within your price range. Narrow down a few you like. Then do some research on the Internet (or even better, post a new thread here on CC with your top 3 or so models). THEN, head back to the dealer - IMO, with an additional knowledgeable person to start negotiating . </p>
<p>Always be willing to walk away.
I went to a tent sale hosted by my credit union after doing a little research.
I found a car and color I wanted, went for a test drive, then asked to come back so I could discuss it with my husband.
When I came back, the car was sold, so I left. But the salesman followed me out to my car and agreed to knock about 1/4 of the price off if I bought a similar model they had, but a different color.
So I agreed.
They were demos.
Dealer demos or short term lease cars, we have had good luck with.
We havent bought a " new" car, since 1981.</p>
<p>Look into Carmax. You can’t haggle and the cheapest car is about $8000, I think. We’ve had good experience X 3 with them. (I can’t bring myself to buy a new car. I just bought a 2011 from Carmax.)</p>
<p>I have a really good dealer who is pretty honest with me and tries to convince me not to buy things I don’t need. That helps a bunch. He is my parents dealer so I saw him by their recommendation. You do need to have a firm grasp of your budget and which cars you might like, then go test drive them. It’s easier than you think once you have your budget worked out. Think about how your insurance will change and be prepared. </p>
<p>We do 2 or 3 year leases since our car needs are going to be variable over the next few years. The last couple of years an inexpensive sedan was appropriate, now I need something a little bigger, in a few years we will probably want a van. I’ve done two cars and didn’t actually test drive either of them. At the time I had it narrowed down to just those cars before I ever got to the lot so there was no point, though I did sit in them to make sure I could see out the back window well enough to back out, that’s always a concern for me. My current car is a ford edge and I almost wish we’d just bought it, I love it so much. You’ll know what you like when you go sit in them. </p>
<p>We have purchased three Toyota RAV4s for our kids. They are the right size and price, are very reliable and hold their value. No problems with any of them…just gave away one my oldest had for seven years…Check these out!</p>
<p>Sdgal, the RAV4 is definitely an option!!! Thank you! :)</p>
<p>Thank you all for the wonderful advice! I’m hoping when the time is right my dad will fly out to help me with everything…I could never negotiate by myself. Or maybe get one of my very best friends (who knows a LOT about cars and is much more assertive than I am ) to come with me.</p>
<p>I’m another one who can’t bring myself to buy a new car. I first read the car issue of Consumer Reports, find some cars that meet my needs/wants, then contact a no-haggle car lot that we have had good luck with. (Kind of like CarMax) I tell them what I’m interested in and my price range. It’s worked great for our family so far. </p>
<p>My advice is to pick a car at 2 different dealerships that you like.
Then if possible wait until the end of the month and call the 2 dealerships asking them for their best price. Remember they have quotas. Talk to both of them on the phone a couple times going back and forth making sure they both know you are going to buy a car you just aren’t sure whether you are buying from them or the other guy . They should both drop their price at least once. When you are reasonably sure you aren’t going to get a better deal go into the dealership you want to buy the car from. At least for me it’s a lot easier dealing with them and agreeing on a price over the phone. If I go in person to haggle they can end up wearing me down and I end up paying more than I want to. </p>
<p>Read the free consumer reports articles. I have access to the car reviews too, through subscription. A long time ago when I bought my first car, I was alone at the lots and I was lucky I had read a consumer reports article about how they try to focus on payments and trade ins and financing. They even take a piece of paper and make a cross and fill in 3 of the 4 squares with those things. I just focused on the all in price of the car. And I brought my own HP calculator so I could put in P + I and get the payment myself, while the sales guy had to run his little protocol and go up to the manager each time, even though I calculated it already. So tedious.</p>
<p>We did well emailing different dealers and telling them what we wanted. We let them know that we were emailing several places and the prices came back competitive. It was easier than doing it in person. </p>
<p>I"m a big fan of preowned IF you do your research on the exact model and car year. Used Truecar and car guru.com as resources to find what I wanted, also Carmax to test drive different vehicles. Ended up with a VW GOLF which we ALL love…safe, peppy and affordable. Good luck with your search!</p>
<p>Once you pick a car you like, go on line and search what others in your neighborhood are paying for the same car. That will help you negotiate the price.</p>
<p>Full disclosure. I currently work in the auto finance business. Do all of your math. Price is less important, often, than your credit profile. Getting a low rate makes more difference than a few hundred or even thousand in base price. Don’t be in a rush. Don’t get emotionally attached to a particular car. It is a car, not a friend. Make sure you have a list of ‘must-haves’ and ‘negotiables’. Do not settle or compromise on your must-haves. Don’t be afraid to walk away. Getting the best deal can take time. Get pre-financed by going to your local bank or credit union or getting a pre-approval online from a reputable bank. That will give you negotiating power at the dealership. </p>
<p>Carmax is great for test-driving, but unless you want to pay more for the lack of negotiating, buy elsewhere. Go to the library or online and read the Consumer Reports ™ auto issue. They do a great job of reviewing and giving a lot of detail about models. They specifically have a section in that issue about used cars (good and bad ones). If you are buying used, you have extra research to do (CarFax is a good tool) as you never know how the previous owner(s) treated the vehicle. </p>
<p>Hope that helps. Congrats on finishing school.</p>
<p>I just bought a new car, and things have changed since the last time I bought a new car (2001). You can go online (edmunds.com) and find out the average price of the model you are interested in in your area. Through them, you can also solicit prices from multiple dealerships - all dealerships have internet managers now. I got prices from 3 local dealerships. Make sure all prices include destination and any dealer fees. I was paying cash, which made it much easier. If you are going to finance it might be better to arrange financing through your bank, so that you only have one simple price to compare. In my case, the only variable was the trade-in on my old, but low mileage, car. I went in to the dealer with the lowest price (all were within a few hundred dollars) to have my car assessed. I had checked on edmunds and knew that the trade-in value should be $2-4k. The guy offered me $1k, I said, We’re really far apart, I’m going to another dealer, and started to walk out. The guy said, wait, wait, the wholesale guy will be here soon and maybe he will find more value in your car. I said, I’ve been here too long, I need to leave. He said, 5 minutes. Then he said, if I can get $3k for your car, will that be acceptable. I said, Yes, if you give me $3k, I will buy the new car now. Two minutes later, he said he’d pay $3k. I have my new car now. Won’t have to do this for another 13 years or so, I hope.</p>
<p>I bought a new car right after graduating and beginning my first ‘grown-up’ job. I had no real credit history and ended up financing car without a co-signer for around 6 or 7 % interest. After I had worked for about 9 months and built up a payment history with the car payments, I refinanced at 1.7%! You can probably get a better finance package at dealer than at your own bank, they’ll shop with lenders they work with…a lot of local banks try to gouge you.</p>
<p>Watch out when they ask you what you want your maximum monthly payment to be. Sometimes they will say you can get the car you want for that max monthly, but they are talking about a 7 year loan! You end up paying thousands more for the car. You need to keep in mind the actual price, the payment amount and the length of the loan.</p>
<p>A friend of mine is an independent contract buyer in the Baltimore/D.C. area. How it works is, let him know what you are looking for and he buys one at the wholesale auctions. His charge is 6%, but you get a car for 6% above the wholesale price. Used cars on car lots are typically marked up 30%, so going through a buyers’ broker can save several thousand dollars. You need to work out the financing in advance so you can get him a check at time of sale.</p>
<p>They also are very good at knowing which issues are common on the different used cars and which models and model years to avoid, and how to get a used car back into pristine condition cheaply. To find someone knowledgeable, ask around for references.</p>
<p>Wow!! Thank you all for the incredible advice!!! Lots of great info!</p>
<p>I don’t know when the last time was my parents bought used–we usually buy new–so that’s more my concern than anything. Leasing is not an option; parents are only willing to help with the finances if I buy outright (which is what I want anyway.)</p>
<p>I’ve been building up my credit for some time now and have a good credit score, so I think I can get a decent (if not good) rate. I currently belong to a credit union, so I will see what I can do with them.</p>
<p>I do know the last time they bought a car, period, was around 2007/8 when they bought their Tahoe. So it’s been a while since any of us shopped.</p>
<p>I’m also afraid dad will pressure me to buy American (we have always been a Chevy family, plus my Chrysler), but I’ve had so many weird problems with my Chrysler and all the trustworthy mechanics I’ve seen have advised against American. Sigh. We’ll see.</p>
<p>I would second starting out at Carmax (if you have one nearby). No pressure, you can test drive several different models and get a good idea as to what you can get for the money. They are very helpful with first time buyers. After that, scan the local ads for cars to confirm what is out there. I have bought five used cars from Carmax. Always an easy experience.</p>
Lots of great info!</p>