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Step by Step Guide. A new car depreciates (decreases in value) quickly - after 3 years is worth 60-70% of its original value ($20,000 = $12,000) – as.

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Presentation on theme: "Step by Step Guide. A new car depreciates (decreases in value) quickly - after 3 years is worth 60-70% of its original value ($20,000 = $12,000) – as."— Presentation transcript:

1 Step by Step Guide

2 A new car depreciates (decreases in value) quickly - after 3 years is worth 60-70% of its original value ($20,000 = $12,000) – as soon as you drive off the car lot your NEW $20,000 car is only worth $18,000 A new car smells good and has a warranty A new car may have problems like poor design or manufacturing defects You may not be able to afford all the new bells and whistles later


4 Used will save you a lot of money Used is a gamble – no warranty that the car is accident-free, has real mileage, and was properly maintained (oil changed every three months) Used may have hidden problems like a worn out automatic transmission ($2,000+) or engine problems that may not have been obvious when you test-drove the car ($2,000-$10,000)


6 Be prepared Research – Read Reviews, Consumer Reports, Ask Friends, Compare Options, Gather Gas Consumption Data on Make and Model Examine Reliability Ratings Determine Maintenance Costs and Upkeep Narrow your choices to TWO Go into a dealership knowing what you want


8 A friend of mine bought a used BMW for a great price. When he took it for servicing, they discovered that the rear shock absorber was leaking. The price for the part alone was close to a $1,000. (Another $200 for labor) Finally, he sold his BMW and bought a used Camry that proved less expensive to maintain.


10 Vehicles that have been flooded or restored after serious accidents, those with rolled back odometers (mileage), heavily abused vehicles (ex: rentals), those with outstanding liens (used to take out a loan on something else), can be eliminated after simply checking the history record of the vehicle To check a car history you use the VIN number usually printed on the driver door

11 Check out the car yourself Get a mechanic you trust for an inspection NEVER give a deposit or sign a contract before the car is inspected

12 If buying from a private owner, check with the Vehicle Registration Authorities to make sure there are no liens and that the car has not been stolen If buying from a dealer, check warranty policy and fine print – Do not rely on a salespersons verbal promises – Get it in writing – Find out if there is any remaining original warranty

13 Dont look for the cheapest car You want a car in good condition They sell it cheap because there is something wrong with it

14 First determine your bottom line on how much you can afford from your budget Sometimes they hide the higher price total under low monthly payments – takes longer to pay the car off Remember sales people make a commission (extra pay) off the vehicles they sell


16 $10,000 - $18,000 decent car/3-4 years old – find at a new car dealership – sometimes through a private owner $5000-$9000 6-9 year old car-high mileage – good shape – find at independent used car dealers $1,000-$2,000 – a simple transportation machine – gets you from point A to B – Plan on spending a lot more money to repair it – can get through a private owner or car lot


18 Before you make your purchase you need to find out how much the insurance will cost You can get online quotes through: GEICO INSURANCE.COM 21 st Century Insurance Company


20 155,000 miles and higher is a lot of miles Low miles does not necessarily mean a good car 60,000 -80,000 mileage – great – BUT make sure the car was maintained Grandma got sick – car sat in garage for 6 years – car was 10 years old with only 40,000 miles – not good because mechanical items just sitting tend to deteriorate

21 Dont buy a car older than 10 – 12 years It doesnt matter how cheap it is – the car is old and will need lots of repairs and new parts 3-5 years perfect choice Remember – 2000 model year does not mean production year – August 1999 production -

22 Inquire information about a car in the newspaper Answers like: It is a friend of mines car I bought it a couple months ago Be suspicious – You need to deal with the actual owner or second scenario – the car may need some major repairs that they didnt know about and now trying to dump it

23 If they ask $15,000 offer $13,000 Be ready to leave if the dealer is pressuring you or you have hesitations about the vehicle Dont decide immediately – sleep on it Dont sign unless all your conditions are met Competition is good – tell the dealer you are also looking at another place and comparing Get promises in WRITING


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