In my life before real estate I was in the car business. Its a terrible business to be in but that's a different story. Walking in to a car dealership actually really makes me nauseous. I got tired of having to beat people up (figuratively) to make a sale, putting up with obnoxious sales manages was a whole other story.
I much prefer helping people make sound financial decisions regarding the purchase or sale of their home.
If you are in the market to buy a car here are a few tips that I would give, In no particular order :
Figure out what car you want before you go shopping.
If you are financing, Arrange financing before you go shopping. Although I highly recommend NOT financing at all.. If you finance a car you are paying interest for the guaranteed depreciation.
Shop on the internet. All dealers have internet department now and they will quote you prices over the net. Make sure you ask for the total drive out price including all taxes and fees. They all have stupid junk fees. Don't argue with it just shop around.
If you shop on the 'net, know what you want, and have your financing ready, you can avoid this guy .... Just show up, meet the internet rep, go for a quick test drive and inspection, then sign the papers and go home.
Buy used. The average new car depreciated about 10-15% the fist year and about 20-30% during the first 3 years. If you buy a $30,000 dollar car that's a $9000 dollar depreciation loss. $9k is a lot to pay just to have a warranty and the new car smell. And remember , if you financed the car, you paid interest on the $9k. A 2 year old car with low miles is almost new and still has a little factory warranty remaining, plus it has already taken a big hit on depreciation.
If you are financing there is nothing wrong with using the dealer financing as long as you already have your own financing available. Compare rates. If they can compete then what's the difference? Just be sure of all your figures so the dealer doesn't try to slide anything in on the deal.
Again, my recommendation is to buy used and pay cash. Many states will make you pay sales tax if you buy used from a dealer. Here in Georgia that is the case, but there is no tax if you buy from a private party.
Keep your cars for a long time and don't trade too often. Cars are expensive and a terrible investment. Keep it a long time and get your moneys worth out of it.
I could probably think of a lot more but this is enough to be dangerous anyway :-)
Good luck.
If you are looking for somebody to help you make wise choices regarding the purchase or sale of your next home in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram, or the surrounding areas of Georgia, please give me a call.
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Thanks for the post. I don't think I would ever buy a brand new car. Although temping the hit you take in the first few years isn't worth it. I'd rather have someone else pay for that. Do you see a huge hit on resale if the car has over 100,000 miles? I know most people have cut offs at each 25K, but isn't 100K a big one? Also, is it better to sell by owner rather than trade in if you are buying from a dealer? Thanks,
Ryan