1. Personal Finance Section Buying a Car

2. Personal Finance Section  Don’t think of a car as a status symbol or a personal statement,. The best car is the one that suits your needs – and that you can afford.  A car is one of the biggest purchases you will make.

3. Personal Finance Section  Getting the Best Deal on a New Car Know what options you want on a car and how much you are willing to spend. Don’t let the salesmen talk you into a more pricey car. Don’t buy such things as fabric protection, paint sealant, rust-proofing, or an extended warranty.

4. Personal Finance Section  Financing a New Car Research the costs of auto loans at banks and other financial institutions before going shopping. Look at the annual percentage rates that places offer. Consider how much of a down payment you can afford. The more you put down the lower the amount you have to borrow. Don’t buy a life insurance policy with the car from the dealership.

5. Personal Finance Section  Used Cars Automobiles depreciate quickly or lose their value. The new car you drive off the lot today will be worth half what you paid for it in 3 years. A used car has already depreciated and it will cost you a lot less money to buy. Dealerships, rental and leasing companies or even individuals sell used cars.

6. Personal Finance Section  Used Cars Ask for the service records of any used car that you may be considering. If the owner does not have the service record, then you need to walk away from it. The car is not going to last if it is not taken care of. Any car that averages more than 15,000 miles/yr has experienced an excessive amount of wear and tear.

7. Personal Finance Section  Used Cars Arrange for an independent mechanic to look over the car before you buy it. A family mechanic would be a good person to turn to. Look at the Blue Book Value to see if the price of the car is close to what it really is worth. {Kelly Blue Book}

8. Personal Finance Section  Avoiding High-Pressure Tactics Car salesmen are very good at selling cars – consumers have less experience at buying cars. Tips:  1. Be prepared – Know what you want, what you don’t want, and obtain bids based on the invoice.  2. Don’t be talked into options you don’t want.  3. Don’t discuss trade-ins until after you have settled on a sale price.  4. Don’t be pushed into a decision quickly. Take your time.  5. Get everything in writing.

9. Personal Finance Section  Review Why is it a wise idea to buy a car that has already depreciated a great deal? What four features would matter most to you in buying a car? What do you have to sacrifice in order to get your most-wanted feature?