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If you analyze your needs
rather than wants, you will quickly discover what is the right car for
you. Take a moment to think about what you use your car for. How many
people do you need to transport? do you most often do? How long is your
commute? Is it important that your next vehicle get good gas mileage?
people choose a car because it has an eye-catching style or it is a trendy
favorite. If you go in this direction, you may either break your budget or
have to go car shopping again soon. Let your needs, not your wants, drive
your decision.
Here are a few other questions to keep in mind when you begin your
car-buying process:
Do you really need four-wheel drive?
What safety features do you want?
Do you require a lot of cargo-carrying capacity?
Will you be doing any towing?
what's the main purpose of the car?
Will the car easily fit in your garage or parking area?
A rule of thumb is your total monthly car payments — whether you own one
car or more than one — shouldn't exceed 20 percent of your monthly
take-home pay.
Check "Financial Calculators" to help you estimate what your monthly
payment will be based on purchase price, down payment, interest rate and
length of loan. Take the time into your car-buying folder. It will not
only show you what you can afford, it will also help you control the
numbers when you negotiate with a car salesman.
A lease requires little or no money up front and offers lower monthly
payments. But when the lease ends you are left without a car and a need to
replace it.
Buying a car is more expensive initially and the monthly payments are
higher. But at the end of the loan, you will own a car you can still drive
or sell. Every used car has several "prices," depending on who is doing
the buying and selling. The wholesale price is what dealers pay when her
retail price is what dealers charge when they sell the same car. In
private sales between individuals, the price can be anything, but is
usually somewhere between the wholesale and retail prices.
Other key factors that differentiate leasing and buying include:
Advantages of Leasing
You can drive a better car for less money
No trade-in hassles at the end of the lease
Increased flexibility — you can sell the car whenever you want
If you are still unsure whether to lease or buy, try letting the numbers
help you make the right decision. Go to this Edmunds.com "Decision
Calculator" and see how much leasing or buying will cost for the same car.
Major factors that affect the price of an individual car include the car's
condition, its mileage, optional equipment, and even its location in
why pricing for used cars—even of the same make, model, and year—can vary
across a wide range.
There are many sources of used-car price information. Consumer Reports
Used Car Price Reports, available for individual models, provide
up-to-date price ranges for buying, selling, or trade-ins. Each report
also includes exclusive reliability ratings on the
You can also check out prices online, or consult printed price guides such
as the Kelley Blue Book, Edmund's, or the National Automobile Dealers
Association Official Used Car Guide. bank loan officers keep them on hand
as well.
check out local publications with classified ads. Scanning ads for cars
like the one you are interested in will give you an idea of the prices
being asked by private parties and by local dealers. Selling a car
privately is probably the best way to get top dollar. But this also
usually involves to buy a used car is less complicated than buying a new
car. If you're buying from a car dealer, there are fewer opportunities for
the salesman to load up the deal with extra-cost items and charges. If
you're buying from a private party, that person is unlikely to have the
experience and resources to play all the games a salesman might try.
The best way to negotiate is to say as little as possible for as long as
possible. Begin by making an offer that is realistic but still somewhat
lower than what you are willing to pay. If you've found legitimate things
wrong with the car, you might start by ) and he's found things that need
to be fixed, you can use this information as a bargaining chip, indicating
how much money it will cost to bring the car up to what you consider an
acceptable level. Be polite about it. Then name your offer and say no more
until the person you're negotiating with responds.
Whatever counteroffer you receive, respond that your original figure is
fair and as much as you're prepared to pay today. Say nothing more and see
what happens. Be courteous and businesslike. It may seem very complicated,
but if you keep a few simple rules in mind, you will always know the
basics to remember when considering auto insurance.
If you have a trade-in, particularly a late-model car, you can also
canvass the used-car department of local new-car dealers. Ask what they'd
give you for the car in a straight-out sale. Whatever figure you come up
with in that way is the minimum you can expect to get for the car. You
should gather all that information before you actually negotiate a
trade-in with a dealer.
bet you get close to your target price, make it you have budgeted. Once
you've made your last offer, stick to it. Don't be afraid to say that your
offer is firm and final, and good for the next 24 hours only. If, walk
away. With luck, nobody walks away and the actual negotiation will be over
within a few minutes. sure you get the coverage required by your
state laws. Most automotive insurance policies are comprised of six basic
elements of coverage. They are:
Collision: This is coverage for your vehicle if it is damaged in a
collision with another vehicle or object. If you have taken out a loan to
purchase your vehicle, collision coverage is usually mandated by the
financial institution to protect their collateral (the vehicle).
The collision premium usually has a deductible, which could vary from $200
to as much a $1000. The deductible is the amount you must pay as your part
of the cost of repairing the vehicle. If your vehicle is totally
destroyed, or totaled, the insurance company may offer minus your
deductible.
Comprehensive: other than a collision with covered are fire, falling
objects, hail storms or even contact with animals such as deer. This
usually carries a deductible of a variable amount, which you can adjust to
lower your premium just like collision coverage.
Property Damage Liability: You need this coverage to protect you if you,
else's property. Most common coverage includes destruction of utility
poles, fences or buildings that your car harms.
Bodily Injure The term liability should your attention possessions,
your protection amount should be substantial enough to protect such
property.
Property coverage pays for damage or loss of your car, or other objects
Liability coverage pays for cost of treating injuries to persons.
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