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How To Do Smart Car Shopping, Part Two

by Joanne Brickman

<< Part One

In Part One of this car shopping "workshop," we discussed how proper preparation can help turn your car-buying experience from trauma to terrific.
     We suggested a 'to do' list to guide you through a thoughtful analysis and research process.  Steps one, two and three took you through the process of determining which vehicles should be on your shopping list and how to gather information on these choices.  Now, it's time to get serious.

'TO DO'List, Continued

• 4. This step asks you to calculate your new car budget.  Remember, the cost of owning a vehicle includes much more than the vehicle's price.  When all of a vehicle's ownership factors are calculated over five years, the real cost of ownership can exceed the purchase price by as much as $15,000.Several cost areas need to be analyzed to get a real idea of ownership costs, namely depreciation, insurance, fuel, maintenance and repairs. 

Depreciation, simply put, is the amount of value a vehicle loses as it ages. There are several ways to determine depreciation on a vehicle, but most come with a cost attached.  There is an Internet site, however, that can tell you in a quick click the estimated cost of depreciation on a vehicle and that's probably enough at this point in your car purchase process.  Finance Center is a financial information site with numerous categories, including autos."  Go to the site's auto section and ask ClickCals to help you determine the depreciation factor.

Insurance costs can be determined with a quick call to your insurance agent. Estimated annual fuel costs were probably included in the information you gathered on the vehicles on your shopping list.  If you missed them, go back to the sites you used for research.  Maintenance and repairs can be addressed by checking out reliability factors on the vehicles.  Consumer Reports'  April issue is a good source for this information. (or if you are an online subscriber,  Consumer Reports Online. Be as realistic as possible in your assessment of how much a vehicle will cost you to own.  Nobody likes surprises.
 

5. Now it's time to decide whether you will lease or buy your new car.  This is something that definitely needs to be decided in a calm, non-intimidating atmosphere--not in the cubicle at the dealership.  Leasing has grown in popularity by leaps and bounds, mainly because of the high selling price of new cars.  It is an alternative you should consider, even if you're predisposed to purchase rather than rent (which is, of course, what leasing really is).  One of the best places on the Internet to go for up-to-the-minute leasing information and help with your decision is LeaseSource Online.

• 6. From the list you made of vehicles best suited to your life-style, find the dealerships in your area that handle those cars.  Visit these dealerships and "kick a few tires."   While there are an extraordinary number of Web sites that can help you look at the various vehicles you're considering in the comfort of your own home, it's vital that you look at the actual vehicle.  Such information as how you fit in the vehicle (one size does not fit all), trunk configuration (12 cubic foot sounds big, but how it's shaped can make all the difference when placed against your personal needs) can only be assessed when seen in person.  It is important to remember, too, that these preliminary dealership visits are for "window shopping" only.  Take some test drives, wander around and get the feel of the place, but do not sign anything yet! 

• 7. Before you go to the final step, the negotiation, there's another important piece of information you need. You need to know, as close as possible, how much the dealer paid for the vehicle.  Edmunds has been a respected automotive authority for years.  Their Web site, Edmunds is a good place to peruse and use to determine a fair price for your vehicle. 

• 8. Remember, "knowledge is power." If you've performed Steps 1-7 faithfully, you will be prepared and impossible to intimidate in the negotiation process.  Be sure to take your "My Car" notebook with you when you go to the dealership to make the deal.  Look like you're in control even if you're nervous about the negotiation process.

     There is an option to actually entering a dealership.  The profusion of car buying sites on the Internet now includes (and more are coming) a way you can buy online.  Manufacturers maintain sites like gm.com and
gmbuypower.com, ford.com and toyota.com.   You may also want to take a look at Autonationdirect.com or CarOrder.com.  Both these sites own their own dealerships, but both are in their infancy.  Know that the auto industry is still tradition-bound to sell vehicles through dealers.  Until this situation changes dramatically, whatever the Web site leads you to believe, you can rest assured there's a dealer involved somewhere. 

    Now, you've gotten the price and vehicle you wanted.  You've signed the papers and are about to drive away a happy new car owner.  But wait--there is one thing left to do.  You need to take an  inventory of everything on the car you're about to drive away in and check it against the things agreed to in Step 8.  Be sure the spare tire, manual and any other "removable item" is in the vehicle and that the "prep" work actually happened.   Remember, over the curb and it's yours. 

    We can't promise you won't get a lemon, even if you follow this list of "to dos."   But careful analysis of your needs and good research on the vehicles that meet these needs gives you a running start toward a new car buying pleasant experience.