WealthEffect — Buying a Car

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Buying a Car
by A.J. Alfino
Contributing Editor to WealthEffect.com

Dealership is in close proximity

Service

Negotiation

First and foremost, do some homework so you have basic knowledge about the car of your choice and its approximate costs. The internet, periodicals and even friends can help you up the learning curve.

Pick a few dealerships in your area to shop. It is always a good idea to find a dealer within driving distance of your home or office. You will continually have questions about the features contained in your new car, particularly given the complexity of today's technology. In addition, your car will have to be serviced after the purchase and it makes it a lot easier when you don't have to drive a great distance.

You will learn a lot about a dealer by the obvious: by how promptly and professionally you are taken care of, and by whether the salesperson listens to your needs or simply chooses to push his own agenda. It is very important to ask about the service department and to visit the garage - don't underestimate what you learn when you walk around. Bear in mind that good service is priceless, whether from the salesperson, the garage or the actual dealer themselves (which you can contact directly on the internet).

Financing rates are an important part of the buying process but be careful not to pay too much for a car or truck just to take advantage of a low rate. Many manufacturers are subventing interest rates to get a deal done. You might be able to negotiate a better price for the vehicle if your borrow from own bank rather than financing through the manufacturer. An excellent option to consider as well is using a home equity loan, where your interest payments are tax-deductible, for your auto purchase.

Suggestion: Go to Buy vs. Lease

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