Auto Reflexx

The vast majority of car buying mistakes are made before buyers ever set foot in a dealership. By the time you go to a dealership, you should have already made the most important and difficult decisions you’ll need to make.

The only way to accomplish this is to do your research before hand.

Financial Research

Most of us make buying decisions based in large part upon our financial situation and philosophy. If you are a cash buyer and have $10,000 to spend, then you need to buy a car for about $9,000 plus taxes and fees.

If you are financing and you have a budget of $350/month for car payments, then you can use a car loan calculator to estimate what your price range will be at various rates and down payments. You’ll need to be realistic about your financing options, based on your credit score.

Pricing Research

Now that you know what your car budget is, you need to figure out which cars are in your price range. Are you looking for a car, suv, or truck? What mileage range should you expect?

It’s easy to get unrealistic at this point. Sure you want a 2009 BMW M3 for $10,000 – but you won’t find any. Figure out what you want, then go to a site like KBB.com and look at the book value. You can expect to pay somewhere between wholesale and retail book.

A vehicle with higher demand will be closer to or above retail whereas more common vehicles with lower demand can sometimes be had for at or below wholesale. At this point, you should have a really good idea of your budget and which vehicles would fit inside your budget.

Quality and Reliability Research

Based on your list of cars that realistically fit in your budget, the next step is figuring out the quality and reliability ratings of these vehicles. There are lots of good sources for this information, but the best start is to Google the type of car you are looking for and just start reading. Consumer Reports and Edmunds are two good sources as well.

You may like the way a particular car looks, but realize the reliability is poor. You may be able to sacrifice reliability ratings to get a car in your price range with lower miles. At least you get to think about these decisions ahead of time.

Research, Research, Research

As we consider how to buy a car, the most important step is the first: research. An educated buyer will have a better, more enjoyable car buying experience and will make fewer mistakes than an uneducated buyer. Take the time to do your car buying homework. You’ll be glad you did.

Comments are closed.