7 Steps for Finding the Right Car

If you examine your needs rather than wants, you will quickly

discover what the right car is for you.

In too many cases people choose a car for its styling or because it is a trendy favorite. If you do, you might either exceed your budget.

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:

Step 1:What will you be using your car for?

• How many people do you need to transport? • What type of driving do you do most often? • How long is your commute? • Is it important that your vehicle get good gas

mileage?

Step 2How much can you afford?

• Establishing a realistic monthly payment that fits into your budget is crucial. How much should this be?

• A rule of thumb is your total monthly car payments shouldn't exceed 10 percent of your monthly take-home pay.

Step 3Should you lease or buy your car?

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 will 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.

Advantages of Leasing

• You can drive a more expensive car for less money.

• You can drive a new car every few years.• There are no trade-in hassles at the end of the

lease.

Advantages of Buying• When interest rates are low, it makes more financial sense to

own a car rather than lease it.

• There are no unexpected mileage penalties for increased driving.

• There's more flexibility — you can sell the car whenever you want.

Step 4: Have you considered all vehicles in that class?

If you know that you want a specific type of car (sedan), research all sedans in your price range.

Step 5: Have you considered all of the costs of ownership?

Before you commit to one car, you should estimate the long-term ownership costs of the vehicle you are considering. These include:

• depreciation• insurance• maintenance • fuel costs• Personal property taxes

Step 6: Research car options

In the past, car buyers have been trained to visit local dealerships to find the car they want. In the Internet age, this is a waste of time and money. You can quickly cover more ground by shopping online.

Step 7: Schedule an appointment for a test-drive.

• Most dealerships have an internet department manager.

• Make your initial contact with the Internet manager either via an e-mail message or a phone call.

• Call the Internet department and tell the salesperson that you want to set up a test-drive — but that you won't be buying right away. However, assure them that you will buy there if you decide to purchase this particular model, and if they can offer the vehicle at a fair price.

• If you deal with a normal car salesperson, he or she will try to start the negotiations at a high price with the expectation of being negotiated down. However, the Internet manager will often quote you a rock-bottom price right away. A few minutes taken to set up an appointment with the Internet manager can save you both time and money.

BE SAFE!