Monday, March 18

3. Research Before Buying

Put Your Emotions Aside

ResearchDon’t go near that dealership! Once you know how much Available Cash you have, get the hard facts about the vehicles that fit your Available Cash figure before you go any further. For instance:

  • What vehicles fit your budget?
  • What do these cars cost the dealers?
  • What is the vehicle’s safety record?
  • What about mechanical reliability and maintenance costs?
  • What about insurance costs?
  • What about operating costs, such as fuel economy?

Resources for Research

The following resources available online can help you find the information you need to choose wisely. Please remember that these are third-party sites that FoolProof doesn't control. These are sites, however, that I have found provide generally sound, helpful information.

Manufacturers' "Consumer" Sites

The manufacturers all offer "consumer" sites which supposedly tell you objective information about their vehicles. Frankly, these sites are nearly worthless when it comes to learning anything negative about a vehicle. If a manufacturer's most popular car is having serious problems with its airbags, you're not going to read about that problem first on the manufacturer's site.

Big tip: Do not rely upon manufacturer (or dealer) websites when you are making decisions on safety, reliability, or resale value. The sites can be fun to visit, regardless. Most now offer "virtual" tours of individual vehicles. Just use your search engine and any manufacturer’s name.

Now It’s Time to Shop for the One Vehicle You Like!

Like a chocoholic's first whiff of a candy factory, your first visit to a dealership or website poses the maximum danger to your pocketbook. Those new or newer cars look so good. And you've waited so long. Whether online or in person, sellers know how to turn up the fires of your enthusiasm and singe your reason.

So put your emotions aside. Be wary. Slow down. Save the emotions for the moment you finally drive away on budget in your shiny car with an extra thousand or two in your pocket. Now that's something to get excited about!

Big FoolProof tip: For decades, I’ve told people that buying the right used car is one of the smartest things you can do.

New cars are the worst investment in the world. They depreciate in seconds, thousands of dollars, the minute you drive off the lot.

But buying used can be the worst thing many people do, because they don't understand the specific problems used-car buyers face, on the Web or at a dealership. For instance, did you know some dealers and online lenders charge you thousands more in interest to finance a used car than they would to finance the same amount on a new car?

How do you stop that from happening to you? Keep reading. We've got a special "Buying a Used Vehicle" section for you, and the information is priceless. But first, let's deal with new vehicles.


Next chapter: 4. Buying a New Vehicle