Car Buying Guide

New Or Used?

Making The Choice

The root of your choice depends mainly on your interest and reasons for owning a car. Once you have decided on the criterion, you'll have to compare prices and financing opportunities. If you decide to buy a used car, choose a reliable and reputable dealer. This gives you a place to go back to if something goes wrong with the car.

How Well It Suits Your Needs

Consider these factors when deciding what kind of car is compatible to your needs.

	a)	Does the car meet all your safety and security needs? (i.e. child lock, alarm, air bags). Will you pay a premium for a very safe car?
	b)	Is the car reliable to cater to all your travel needs? (i.e. long distance, off road durability)
	c)	Is the car cost effective? (i.e. petrol consumption, availability and affordability of spare parts, maintenance level)
	d)	How important is gas mileage? (In general, the more luxurious the car, the higher the fuel consumption.)
	e)	How does the car fit your image? (Is it classy, stylish, rugged, cool?)
	f)	How does the car fit your lifestyle? (i.e. affordability, comfort, speed)

These factors may cause you to sell or trade-in too early and cause big losses if they are not being considered carefully.

Buying A New Car

In order to have maximum satisfaction on your coming purchase, you have to do some homework...

		If you want to drive a specific car for a number of years, getting a new one would be more feasible. You will be the one giving the initial care in order to sustain its life span. For most people, buying a new car is an intricate emotional and economic issue which requires careful decision-making. It is important to buy a car that best meets your needs and budget rather than be influenced by advertising strategies that sells you features you think you need.
		If you have yet to decide on the model of the car you want and how much you are willing to spend, check out auto magazines or surf the Internet.

Next, to obtain value for money on your purchase, information about the cost of the car is crucial. These, you can gather from :

		Reading car reviews. New features of models available and those that interest you will be highlighted together with a price list of available models.
		Find out listings of dealer networks and their price offers from the Internet.
		Shop around for the best possible price by comparing models and prices in ads and at dealer showrooms.

You are open to a wider variety of choices if you are seeking a new car. Dealers are able to help make bookings for the model you want from their network of dealers. Once all research is done and you have made a choice, contact the dealers and go for a test drive. This is when your negotiation skills come into use.

Dealing With Car Dealers

Car dealers earn a living just like you and me. In order to make a sale, they may seem rather persistent. Nevertheless, they are able to help you make the wisest decision on your purchase.

		Talking to a salesperson before entering a showroom gives you the opportunity to pre-screen them. If you wish to have a different salesperson entertaining your enquiries, make the request clear and quick. It is wise to tell the salesperson all the specifications of the car you need. Finally, always remember that you're buying the car, not the salesperson.
		You are responsible for being pleasant and business like no matter how you feel or how you are being addressed by a salesperson. If the situation turns ugly, you can walk out -- the only person you have an obligation to is yourself.
		The salesperson's duty is to sell you a car. You need not feel obligated towards them if they spend a lot of time entertaining your enquiries.
		It is also wise to show your strong interest in a purchase up-front. The more interest you show, the more helpful and courteous the salesperson will be. Getting your money's worth Used cars provide you with the opportunity to purchase the car of your choice at a lower price, or a chance to step up to a better model. Depreciation costs will not be an issue, as the original owner has already sustained it. A used car which has taken up several years of it's life span, would have stabilized greatly in value but does not decline significantly in mechanical reliability or appearance, nor increased in ownership costs. With lower insurance costs and other fees, purchasing a used car may be a good choice, if your main goal as a vehicle buyer is obtaining reliable transportation for a good price! Aspects to contemplate Before deciding on the used car of interest, it is neccessary to consider the following factors : 1. What is the mileage of the car? 2. Has the odometer ever been rolled back? 3. Is the car a manual or an automatic? 4. How often has the car been sent for service? 5. What modifications have been added on to the car? 6. Has the car ever been repainted? 7. Is there a functional security alarm system on the car? 8. Has the car ever been in an accident, and if so, what were the damages? 9. Why is the owner selling the car? 10. Is the current owner the first owner? Essential actions before a purchase After considering the above factors, your decision to buy a used car should be further guided by the following : 1. You have the right to see a copy of the dealer's warranty before you buy. Warranties are part and parcel of the product. 2. Ask for the car's maintenance record from the owner, dealer, or repair shop. 3. Test drive the car on hills, highways, and in stop-and-go traffic. 4. Have the car inspected by a mechanic hired by you. 5. Find out the dealer's credentials with local consumer protection officials. 6. If you buy a car with accompanying "as is" phrases, there will be no after-sale services. Sources of used cars Here is a list of sources to help you scout for your desired used car. Individuals advertise their cars through newspaper ads. Bring along a mechanic to check the car before buying. New-car dealers usually sell trade-in cars. These are cars pre-repaired in the dealer's service department before being offered for sale. Usually a limited warranty is provided. Used-car dealers usually sell cars with high mileage and wear-and-tear. Limited warranties might be offered. Car rental agencies offer vehicles that have been rented for about six months or more to 8,000-15,000 miles in mileage. Cars might not be well managed compared to those owned and driven by individual owners. Price will reflect the quality or performance of the car. Banks sell repossessed cars to pay off default loans. Vehicles are offered at auctions or directly from the banks. The quality of your deal depends totally on owner type and quality of care. (Adapted from Netscape.com) Comparison Summary of comparison between the advantages and disadvantages between a new and old car : New Car Used Car Advantages Less expenditure on maintenance and operation Lower loan interest rates More reliable More choices to choose from Advantages Cheaper than new cars Slower depreciation rate Shorter loan period Less interest over life of the loan Disadvantages Higher purchase price Depreciates rapidly Longer loan period More interest over life of the loan Disadvantages More maintenance required Higher loan interest rates Less efficient fuel consumption Limited to what is available at a given time Less chances of price going down, if the vehicle is in demand