The Car Buying Process

Congratulations on taking the crucial first step in acquiring your new or used wheels!  We offer personal recommendations, based on a combined 50 years of experience both inside and outside the retail auto industry.  When you're ready to buy, we'll point you in the right direction, whether you decide on buying privately, using a private auto broker or consultant, going through an established online service, or going it alone at your local dealer.

Auto broker Sam Alessi, in the field for 30 years, has held every job there is in the wholesale and retail automobile business.  Safety advocate, automotive journalist, and transportation enthusiast Mark Theobald, has personally owned over 100 vehicles, and publishes 15 highly successful automotive-related websites.  Physician, literary editor, and environmental advocate Dr. Sarah Nelson helps provide an ecological perspective to the car-buying experience. Our combined knowledge and experience (not all of it good) will help you find a safe vehicle that meets your needs, for a price you're willing to pay.

The Cars Have Changed - A lot has changed in 40 years.  Today's vehicles last twice as long as the cars of 1960, but they cost ten times as much.  In 1960 the average new car cost $2,500 and traveled about 75,000 miles over a seven-year lifespan.  Today the median price of a new car is $25,500 dollars.  According to the US Department of Transportation, today's vehicles will average 145,000 miles in 13 years.  

So Have the Buyers - Forty years ago, used-car buyers dreamed of buying new; new-car buyers dreamed of more expensive models.  Now, many smart car shoppers who want quality and dependability are turning to used cars first.  Plentiful supplies of warrantied, low-mileage, late-model cars coming off lease have altered both the new and used car marketplace.  With yearly model changes a thing of the past, most of these well-maintained, late-model vehicles look and perform like new.

Don't Wait Until The Last Minute - Don't wait until the last minute to go shopping.  It can take up to 6 weeks to research, test-drive, choose, finance, insure, purchase, and register a car, whether it's new or used.  If you don't take your time, unscrupulous people can pressure you into making bad decisions.  An anxious or desperate buyer is the car dealer's best friend. 

Four Methods Commonly Used To Buy Cars - The first is the old-fashioned way.  You go to a dealer in your area and look around.  Spotting a vehicle you like, you enter the showroom.  You sit down with the first available salesperson, agree on a monthly payment that sounds affordable, sign a purchase order, and give them a deposit.  The next day the dealer calls you, says your loan's approved, and tells you when you can pick it up.  This method provides a simple, quick, and painless sales experience for you, and an unexpected windfall for the lucky dealer.  Chances are you settled on a vehicle you knew little about, paying $500 to $3000 more for it than you had to.  Unfortunately this is the way many Americans buy cars.

The second method, which we sometimes recommend, is that you hire an auto broker.  Brokers can find a car matching your specifications, get the best financing, negotiate for you, and deliver the vehicle to your doorstep.  If you have a trade, they'll find a buyer for it as well.  For more about brokers, see Locating a Good Vehicle. 

Online buying, the third method, is fast becoming the preferred method for busy people who don't have the time to comparison shop at multiple dealers. If you're easily intimidated by salespeople, or dread dealer negotiations, we recommend online buying for you. This method provides a simple, quick, and painless sales experience, without the fear of being ripped off by an unscrupulous salesperson or business manager. The online buying experience is essentially the same as using a reputable auto broker.  The only thing you need to worry about is deciding upon which vehicle is right for you. The next step is easy, just go to the website and get your guaranteed best price quote from the site's network of participating dealers. Online buyers get competitive prices, while participating dealers benefit by trimming sales commissions and marketing expenses. This is the way most Americans will purchase their vehicles in the next ten years.  Please see Buying on the Internet for more details.

If you're up for the challenge, the fourth and most satisfying way to buy a new car is to do your own research and negotiations.  Using our 20-step technique, you make a smart, informed decision about which car is right for you. You get your financing before you buy. You become familiar with leasing, warranties, and insurance.  You use dealer inventories for hands-on evaluation and test-driving.  After narrowing your search, you begin negotiations.  If you decide on a used car, you use our rigorous pre-purchase inspection to detect major and minor problems.  If everything checks out, you go on to final negotiations, and buy your car.  Then you're savvy about potential problems down the road, and smart about maintenance.

Don't Pay Too Much! -  Learn How To Buy A New Or Used Car From Our Experts

As with all decision-making processes, preparation is key for getting good results.  In the automobile business, knowledge is power.  Our proven method helps you, the consumer, navigate the tricky waters of the automotive marketplace.  With the exception of the  Mechanic's Inspection, you'll use the same process whether the car you want is new or used.  

The Buying Process - You've decided to buy a car.  What's involved?  An overview.  

Which Car Do I Want?  What Car Do I Need? - What does your vehicle need to do for you?  What are the available choices and options?  We review the various types of car, truck and hybrid; safety features; front-wheel versus rear-wheel versus all-wheel drive; stick versus automatic transmission; optional equipment; and other considerations.   Here's where you begin to sort through the huge variety of automobiles available, narrowing the choice down to a few categories.

How Much Can I Afford? - The down payment and the monthly installment aren't the only costs of owning an automobile.  We show you how to anticipate the hidden expenses.  To see what money you can realistically afford to put into your car, make a budget early in your car-buying quest. If you need to finance, use a payment calculator to see how changes in rate, purchase price, term, and down payment can reduce your loan payments.

Using Internet Resources - Valuable shopping advice and price information online helps you refine your choices further.  You become an expert on the cars on your list: what options they come with, what they go for in your area.

New or Used? - Although new car prices average $25,500, it's easy to find a like-new car for substantially less money.  Why buy new?  The benefits and drawbacks of both new and used vehicles.

Financing Options - To get a good deal, get the financing first. How?  Loans and leases involve renting money. If you have no idea what your credit report shows, now is the time to order a 3-bureau (TRW, Equifax, & TransUnion) credit report from CreditReporting.com. See what's in your report before you speak to any car dealer or financial institution. Web-based lenders provide more options for internet-savvy loan shoppers and we can help you get financed through our exclusive network of dealers and online finance companies. Bankruptcies, bad or non-existent credit is no longer a problem for most customers providing they have a steady income. Just fill out the application to see if you qualify!.

Leasing Explained - Leasing is a good idea for businesses, salespeople, or people who can deduct the payments on their taxes.  Leasing offers lower payments than conventional financing; we explain why, and explore what you get -- and lose -- in return.

Locating a Good Vehicle - To be a smart car-buyer you need to comparison-shop.  There are hundreds of places to look for new and used vehicles: here's where to find them. 

Dealing With Dealers - For a hands-on look at your choices, it's time to visit the car lots.  How to choose a dealership and handle the salespeople.  Dealer slang defined.

Taking the Test Drive - The test drive (Step 10) comes WAY before any negotiation on price.  You're here to experience for yourself how different makes and models handle and perform. 

Final Vehicle Selection - Narrow down the choices and figure out a reasonable price.

Mechanic's Inspection - If a previously-enjoyed vehicle makes your final cut, don't make a $10,000 mistake! A thorough mechanic's inspection and a Free CARFAX Record Check (both highly recommended) are your best protection against buying a used car with costly, hidden problems.

Warranties Explained - The plusses and minuses of extended warranties. Unless you're prepared to pay for the very best policies from a highly rated company like Warranty Direct (recommended), we find them more trouble than they're worth.

Shopping for Insurance - Don't sign anything until you find out what your insurance costs will be.  Before you buy, get a quote on the car you want from an online insurance broker who represents many different firms like Insweb.com and Netquote.com. The difference in premiums between insurance companies can be staggering!

Selling Your Old Car - How to sell your current vehicle, also includes the tax advantages of giving away your clunker.  If you need the cash the best way is to list it with a nationwide used car classified service like Stoneage.com (highly recommended).

Buying on the Internet - Discount internet buying services like Autobytel.com, Autoweb.com CarPrices.com, CarsDirect.com,and FordDirect.com (all recommended) are great for busy people and for cost-conscious consumers who dread typical dealer negotiating or are fearful of being ripped off. 

Final Dealer Negotiations - Here's where your knowledge, patience, and hard work pay off. 

Taking Delivery of the Vehicle - We walk you through the paperwork and alert you to any hassles that could occur when you pick up your vehicle.

Problems Down the Road - What if your purchase turns out to be a lemon? 

Maintenance - Don't play chain-store roulette with your precious new possession.  The dealer's service department or your independent mechanic can provide reliable service and spot problems before they turn into disasters, if you visit regularly.

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