Tips for Buying Your First New Car

 

Buying new cars is something that can cause uncertainty. While the process does get easier each time, the first purchase can be quite intimidating if you aren't sure exactly how to go about it. Here are some tips that can help you when it comes time to buy your very first vehicle.

The first thing you should do is establish a budget. Your budget should be realistic and reflect what you are able to pay monthly when looking at new cars. Unless you are able to pay cash for the vehicle, you will be financing the cost. Look at your cost of living when it comes to food, shelter, insurance, and other spending habits. Once you have taken a good look at that and your income, you will have a better idea of what you can afford to spend on a car payment, insurance, fuel, and maintenance.

After you have decided what you can afford, then you need to take a close look at your needs. While there are many fun new cars, purchasing the vehicle that is best suited for you and your lifestyle is a wise choice. Unless you have excess funds, buying a vehicle that is bigger, better, faster, or fancier can cost you more in insurance, maintenance, and fuel.

Now it's time to research new cars. Luckily, learning more about the vehicles that you are considering is quite easy. You can learn more about cars and their features by looking at our site. After you have researched, you can have a more effective shopping process on our lot.

Are you ready to start looking at new cars in person? Come into our dealership and speak with one of our sales associates. The next thing you should do is take a test drive. While you may find all the information you think you need online, you still want to know how the vehicle feels when you sit in it and drive. Is the seat height adequate? How does the steering feel? Do you like the layout of the controls? There is a lot more to a vehicle than what it looks like and its ratings and features so be sure to do a test drive before making a final decision.

After you have shopped around and decided on a vehicle to purchase, you should learn more about your financing options. Depending on your credit history, the down payment you can afford, and other factors, you may have finance options. Speak with our dealership’s finance department about these, we can help you fit the car of dreams into your budget.

Purchasing a new vehicle is exciting, but it is something you should learn about before signing on the dotted line. Use the information shared here to help you make the most informed decision.

Owning a Used Car: How Much Can You Expect to Pay Each Month? | Stadium Auto Arlington TX

If you are tempted to cut corners on the purchase of your next used vehicle to save money, you may want to reconsider. Even though you can often find deals to save money up front, it usually comes back to bite you.

Simply put, getting a good deal on a used car spans beyond the purchase price. You also must consider the little things that accompany the monthly payment such as insurance, gas, maintenance and repairs. This may seem like a lot to afford, but it doesn’t necessarily mean you won’t be able to afford the used car of your dreams.

The costs of owning your ride is decreasing as time goes on. On average, the monthly operating and ownership costs associated with owning a sedan is $739.67 (or $8,876 per year), according to a recent report released by AAA. Operating costs include gas, maintenance and tires whereas ownership costs include full-coverage insurance, license, registration, taxes, depreciation and finance charges.

Here’s a detailed breakdown of their findings by vehicle type, based on a 15,000 annual mileage:

If you are blown away by these figures, don’t start worrying yet. Here are some things to consider when shopping that can help you save later on down the line:

Gas

Wouldn’t it be grand if all cars could run off of oxygen? Unfortunately, cars need gas, and gas is expensive. Even hybrids require gas to function. Bummer.

So, when you’re shopping, you’ll need to pay attention to the fuel economy ratings, both on the highway and in the city. Put this expense into your car budget, and see how often you can afford to fill your tank. Even though you can’t control gas prices, you can control how much you spend to fill up your tank each week.

Maintenance

Extended warranties are great, but they typically only cover major repairs. That means you’re on your own with the day-to-day maintenance. It’s probably not a good idea to pick out the shiniest model on the lot without first taking a moment to figure out the anticipated maintenance costs.

Generally speaking, the older the model and the higher the mileage, the more costly the maintenance. You also might want to get the maintenance records to see if the vehicle was properly cared for by its prior owner.

Tires

Don’t forget to take a peek at the tires. If they are extremely worn, they will need to be replaced, which can set you back hundreds of dollars out the gate.

Insurance

Besides the cost of the monthly payment, car insurance is a top expense for your car. Unfortunately, it’s illegal not to carry coverage if you live in any state except for New Hampshire, so insurance is an expense you can’t avoid. But, the year, make and model of your car can affect the cost of your insurance.

Depreciation

Unless you seriously intend to drive the vehicle until the wheels fall off, you’ll want to purchase something that holds value. Otherwise, be prepared to fork over the difference between the sales price and what you owe when you want to sell or trade it in for a new set of wheels. Don’t let bargains on the purchase price fool you. Before putting any money down, look at the current asking price compared to older models to gain some insight on depreciation. And, steer clear of rebuilt or salvaged vehicles if you intend to earn any equity in your vehicle.

Bottom line, there is more to owning a car than just the car payments. You need to set a budget that includes all of the costs so you can see what you can reasonably afford.

4 Things You Should Never Ask too Early | Stadium Auto Arlington TX

  By Mark McDonald 

One day I was standing outside the showroom when a small, approximately 10-year-old coupe came skidding around the corner at high speed and screeched to a halt directly in front of me. The driver, who was about 40 years old, long-haired, bearded, and wearing sunglasses, jumped out and did a little Vanna White routine, gesturing to his car with both hands as if it were a prize on “Wheel of Fortune,” and asked: 

 “Hey dude, how much can you give me for this?”  

I’m thinking, “Did he just steal it?” But I said “Um...what is it?” I honestly didn’t know. It kind of looked like a Cavalier, but it could just as easily have been a Cobalt or a Mitsubishi. The man told me what it was and repeated his question. “What do you think I could get for it?” I told him I didn’t know, but if he had the time, I’d be happy to get an appraisal done for him. He looked at me with a disappointed expression that said, “Really, dude? You’re going to play that game with me?” But the truth was, I had no idea what his car was worth. He hadn’t told me the model, the year, the mileage, what kind of engine it had, the options, the condition, its history—nothing. Yet he expected me to spit out a number. When I told him I wasn’t going to hazard a guess until he gave my manager time to drive it and do a professional appraisal, he gave me a disgusted look, jumped back in his car, and sped off. Folks, I’m sorry, but don’t ask me to put a number on your trade after looking at it for a total of five seconds. I may be in car sales, but that doesn’t mean I have an encyclopedic brain full of accurate values for everything produced in the last 20 years. There are zillions of cars out there, and a zillion different trim levels, and a zillion different option combinations. Plus, if I give you a number, it has to be a number the dealer is prepared to stand behind. It won’t be a “suggested value” like you get on a website. It will be a number that we’re actually prepared to write you a check for. I’m talking cash money, dude. That kind of number can’t be arrived at with a glance. That is just one of the questions you should never ask a salesman while you’re standing in the parking lot. 

  “What kind of interest rate can I get on that?” 

 People ask as if it depends on the car, not the buyer. “That depends on your credit,” I usually answer. “And your credit is far too important for me to guess at. But if you’d like to fill out a credit application, I can tell you exactly.” Of course, at the beginning, no one wants to fill out a credit app because they’ve heard it hurts their credit, and because they’re not ready to buy yet. So rather than get a real answer, they’d prefer to ask a total stranger who knows nothing about them—me—to use the WAG method and take a wild-ass guess. Don’t ask your salesman what your rate is going to be until you’ve settled on a particular car and you’ve filled out a credit application. He can’t give you a meaningful answer until then. 

 “What will my payments be on this?"  

Again, it depends on your rate, which depends on your credit. And it depends on your final sale price, and the value of your trade, and the pay-off on your trade, and the number of months you’re willing to finance, and the money down—none of which have been discussed yet. In short, there are too many unknown variables to answer that so early. Later on I can tell you what your payments will be. But not now. So don’t ask.  

“What’s the best price you can do on this?” 

 This is the worst question of all. I’m not sure why people ask this. They’re not ready to buy. They’re not even close to buying. But they want to know your best price, as if that’s going to be the trigger that causes them to buy. A variation on this is 

“What’s the lowest you’ll go on this?” 

In other words, how much money are you willing to lose? This invites a smart aleck like me to fire back an equally silly question, like, “What’s the most you’ll pay?” And where are we then? Nowhere. Questions like this put your salesman in an impossible situation. It’s a total lose-lose for me. Because no matter what I say, it won’t be the right answer. And customers know that. That’s why they ask questions like that. Studies show that one of the biggest complaints people have about buying cars is the inability to get straight answers to simple questions. I agree that can be very frustrating. But here’s the key: Customers must ask appropriate questions. Any of these questions, if they’re asked too early in the process, leave a salesman no choice but to sound evasive, because he or she can’t answer them without more information. Much more information than I can gather from just saying “Hello” and shaking your hand. And if I do try to answer them without asking the proper questions, chances are I’ll be wrong. And what happens when a salesman turns out to be wrong? Usually, it’s interpreted as deliberate deception. I lied to you. I told you your payments would be “around $400 a month,” and they turned out to be $678 a month. Of course, when I said that it was before I knew about your $5000 negative equity, your foreclosure, and your desire to finance for no more than 48 months. But you won’t remember any of that. You’ll be thinking I knew from the get-go what it would be and I misled you. See what I mean? So if you want a direct, accurate, and detailed answer to any question, allow your salesperson to take you inside, sit down, and ask you a few questions. Otherwise, the answer you get is going to be worthless.

Read more: http://www.motortrend.com/features/editorial/1307_4_things_you_should_never_ask_car_salesman_too_early/#ixzz3B9EJg5Jd

Car Salesman Confidential: How To Buy A Used Car

 It's All About Who You Can Trust
By Mark McDonald | August 01, 2014

In recent years, with the transaction price of the average new car climbing past $30,000, and the sluggish economy, more and more people are electing to keep their cars a little longer, or buy used. So the question is, how do you keep from getting stuck with a bad used car? Here are my suggestions, as a ten year veteran of car sales:

1. Establish a Relationship With a Salesperson

Any time you buy from a person you've never met, whether he's a salesman for a dealership or some guy on eBay, it's a bit of a gamble. The seller may be a straight shooter, and the car he's selling may be perfectly fine. Or he may be a con artist and the car may have serious problems with it. In my opinion, a good strategy is to find a salesperson you trust -- maybe the man or woman you bought your last new car from -- and work through them. When it comes time to buy something used, call them up and tell them what you're looking for. If he's smart, your salesman will steer you to a car you'll be happy with, if for no other reason than he wants to sell you more cars in the future.

2. Buy From a Large Dealership With a Good Reputation

I'm not knocking small "Mom & Pop" dealerships, because I have many friends who work at places like this and there's nothing wrong with the cars they sell. But I think you have a slightly better chance of finding a good used car at a large, well-established dealership. There are two reasons. First, large dealerships have service departments, whereas your local "dirt lot" probably does not. Chances are good that any car you find at a large dealership has at least gone through a basic Safety Inspection to make sure the tires are good, the brakes work, and nothing is wrong with the steering. Most dealerships will also check the fluids and change the oil. With a small lot you just have to take the seller's word for it that the car is mechanically sound, or arrange to have your own mechanic inspect it. Second, a big dealership has a bigger reputation to protect. They know that if they abuse you, you'll go on line and write a bad review or complain to their corporate office, and nobody wants that. So they go to greater lengths to make sure their used cars are sound, and they'll be more responsive to your complaints after the sale. Let me give you a quick example. A used car manager at a large dealership I know went to an auction and bought five used BMWs for a song. On the outside, these cars looked fine -- but every single one of them had frame damage. I'm not sure how this guy expected to get away with it, but his plan was to sell these cars without disclosing the damage and make a killing. But when their history was discovered this guy was fired – instantly -- and the cars never even made it onto the dealer's lot. A large organization just cannot afford to do business like that. A Cautionary Word About CarFax. CarFax is great . . . but don't put all your faith in it. CarFax only reports what's reported to it. If two people have an accident, but choose not to report it, it won't show up on the CarFax. Second, just because CarFax says the car has been in an accident, it doesn't mean it's a "bad vehicle" or you shouldn't buy it. Read the fine print. Was the vehicle unable to move on its own power, and had to be towed away? Or was it able to be driven away? The fact is, the collision might have been a minor incident with only minimal damage, but because the Police were called and a report was taken, it shows up on CarFax as an "accident." Third, even if a vehicle is involved in a collison, if the damage has been repaired properly there's no reason to avoid buying the car. See if records are available, and ask how it was repaired and by whom.

A Word About Rental Cars.

Many times, dealerships will supplement their used car inventory with vehicles from rental car companies. The reason is simple: they need the inventory. A dealership can't just sit around and wait for customers to trade in what's popular, so they go out and buy desirable vehicles from rental companies, or at auction. A lot of people are put off by this, but they shouldn't be. If a car is in good condition it shouldn't matter who the previous owner was. (In fact, you may even have a better chance that the vehicle was properly maintained because most rental companies perform regular maintenance.) Rentals will typically have a little higher mileage on them than comparable privately owned cars, but that also means they're priced lower. I have sold many a used car that came from a rental fleet and had no complaints yet.

3. Buy a Certified Used Car

If you've been out cruising dealerships lately you may have noticed some of the cars have stickers on them saying things like "Certified" or "Certified Pre-Owned." What this means is that the car has gone through an inspection process, been serviced and, if necessary, repaired, and is being sold with an extended warranty. For example, if you come across a Certified Honda, it means that the regular 5 years or 60,000 mile drivetrain warranty has been extended to 7 years, 100,000 miles. This is a tremendous value. A certified car has a warranty on it that, in some ways, is better than the original factory warranty. Certification offers every used car buyer extra "peace of mind" that they haven't bought a lemon, and knowledge that the manufacturer stands behind it. Of course, a certified car will also cost a little more than a car that isn't certified, but in my opinion it's worth it. A Word About "As Is" Vehicles. Most of the used cars found on dealership lots have a sticker called the "Buyer's Guide" or "As Is" that tells you whether or not the car has any warranty left on it. Pay attention to this sticker. If it says "As Is," it means As Is -- you're buying the car just as it sits, with no warranty. There's an old saying in the car biz that, if you buy an "As Is" vehicle and you drive it off the lot and it breaks into two pieces, you own both pieces. The dealership is under no obligation whatsoever to fix that vehicle for you. Here's the thing. If you discover a problem with an "As Is" vehicle before you complete the paperwork or drive it off the lot, most dealerships will probably fix it for you -- depending on what it is. If it's a minor cosmetic issue, like a broken cupholder or soiled carpet, probably not. But if it's something major, like a bad headlight or mechanical issue, they probably will. Just be sure to get any promises in writing on the "We Owe" (that's the document the dealer uses to remind us of what we owe the customer). Verbal representations in the middle of a sale tend to get forgotten, or can be distorted by memory, so always get it in writing.