Helping Clients Become Savvy Shoppers

Ronald Montoya, Consumer Advice Editor B.A. in Journalism from California State University, Northridge Worked at Edmunds.com since 2008 Written over 70 advice articles and over 700 blog posts Bought and sold over 30 cars for Edmunds Long Term Fleet Worked at car dealership for five years

Window Shopper to Savvy Shopper What can you afford? How much of a down payment? Research car values Avoid becoming a monthly payment shopper What is a fair deal?

How Much Can You Afford? Edmunds recommends that the total of all vehicle expenses stay within 20 percent of your take-home pay Expenses include insurance, monthly payment, fuel costs and maintenance If you are buying used, stick to the bottom of your budget so you’ll have money for repairs

Know your credit score to see what rates you will qualify for

Down Payment Trends Edmunds recommends 20 percent down payment for new cars A new car depreciates about 22 percent in the first year A low down payment instantly puts a buyer "upside down" in his car purchase A larger down payment helps you pay less interest on the vehicle and build equity Down payments are especially important for buyers with poor credit (680 FICO and below) The average used-car down payment was 11 percent; the recommended is 10 percent California 17.76% National Average 11.06% Oklahoma 6.83%

Monthly Payment Shopper Don’t buy a car with blinders on Monthly-payment shoppers don’t see the bigger picture — the purchase price of the car and some extras the salesman might slide into the deal. Avoid getting caught in the dealer’s four-square

Assessing the value of a car Edmunds True Market Value (TMV) is an effective tool, but it is important to get the correct details Prices can fluctuate based on trim levels and options Have the dealer the window sticker or invoice to have the best match

Edmunds.com True Market Value Edmunds TMV lets you know what others are paying for the car in your area This is a good reference point for making an offer Makes you aware of the invoice price Keep in mind that it is an average, sometimes you’ll pay less sometimes a bit more

Used Car Values It is important to note the correct options to get an accurate price Useful for buying and selling Trade in prices are lower, private party are better, but you must sell the car yourself

What’s a fair deal? Buying Not always the lowest price Five year loan TMV or better 20 percent down Incentives Quality of service Leasing Three year lease Little to no down Lease special Low fees High residual value Quality of service

Final Tips Know what you can afford Research the value of your trade in and the new car Make a 20 percent down payment for new cars and 10 percent for used Don’t be a monthly payment shopper A fair deal is more than just the price of the car