Thursday, July 16, 2009

Before You Go Shopping for A New (Or Gently Used) Set of Wheels

For those of you checking out the “cash for clunkers” (CFC) option, a few extra pieces of information:

1) This option really only makes sense if you truly have an old clunker, something along the lines of Quartermain, my GMC van. (Don’t tell him I called him a clunker!) At 15 years old and 260,000+ miles, I doubt his trade in value would be over $2000, so it would make sense for me to use the CFC rebate option and get a $4500 allowance for a new van or truck. If you have a car that can be traded in or sold for more than the $3500-$4500 CFC allowance, you’d want to go that route. Any “clunker” used for the CFC incentive will be scrapped, so it’s an either-or deal: trade-in allowance or CFC rebate, but not both.

2) If you’re wondering what kind of mileage rating your potential “clunker” has—and if it will qualify you for the CFC rebate—try this website: http://www.fueleconomy.gov/. It provides info on mpg ratings for a variety of cars, new and used.

3) To check out the prices of new or used cars online, try these sites. (Remember, the CFC rebate can only be used for new cars.)

- http://www.edmunds.com/ provides prices, reviews and ratings of both new and used cars. There’s also a handy feature that lets you get an idea of how much any particular model will cost to own and operate over its lifetime and a Search feature that lets you find specific makes and models for sale in your area.

- http://www.motortrends.com/ also provides reviews and information on both new and used cars and a local Search feature. (Both the Edmunds and Motortrend sites seem to feature only cars being sold by dealers.) There’s also a page that will let you know what rebates or incentives are currently being offered by car manufacturers and dealers.

- http://www.craigslist.com/, the on-line "classified ad" site. Just make sure you select your local city or state in the right hand column before searching. Also, be cautious when responding to ads for “owner” sold cars; there are scammers out there who pose as car owners when they’re actually dealers, and even some who’ll try to pull a version of the classic Nigerian scam by promising to ship you a car if you’ll just send them the money. You'll also see a lot of ads repeating as they're posted day by day.

A few last suggestions:

- Do your comparison shopping before you actually start looking at cars. Knowing what your target make and model sells for in your area will help you know if you've really found a good deal.

- Before going to look at used cars (which are usually sold with little or no warranty) ask your mechanic to give you some tips on checking a car for basic defects, (oil leaks, worn shocks, etc.) so you can eliminate cars with obvious problems. Then ask his cost for examining a car that passes that initial once-over. Most mechanics will check a car for a reasonable fee, and knowing that you’ll have the car examined before you buy it will deter crooks who are trying to palm off a junker. I’ve never bought anything but used cars in almost forty years of driving and I’ve never had an honest seller refuse to let me have the car examined.

- Take a friend with you when you go to look at a car, especially if you’re buying one from a private owner. The presence of a witness will often come in handy and it's safer when there’s two of you.

- Check with your Department of Motor Vehicles and see how car titles are handled in your state. (Each state is different.) Make sure you learn the difference between a “clean” title (meaning that the seller owns the car outright ) and a title that shows that the car comes with some kind of lien that must be paid off before you’ll actually own the car.

- If you’ll have to get a loan to buy your car, check rates and fees with local banks, savings and loans and credit unions for the best terms and prices. If you find good financing, see if you can get prequalified for a loan. There’s nothing worse than finding the exact car you want at a great price and either having to accept a dealer’s high interest loan, or having the deal fall through because you can’t qualify for a loan.

Good luck!

No comments:

Post a Comment