How to buy a new or used car

How to buy a new or used car. First let me say that there are great deals right now whether you buy a new or used car. New car sales are down 50% for the most part so the manufacturers and the dealers will do just about anything to help you buy a car.

If you have the means to do so, I would seriously consider making a move to buy now because you are in a position to get a really good deal. You still need to shop around and do your homework and due diligence however.

OK. Before we get into the "How to buy a new or used car" instructions, let's talk about "Should I buy a new or used car?".

Should I buy a used car?

If you are paying cash or have a history of keeping your cars until the wheels fall off, then I would almost certainly suggest buying a used car. If you are hesitant to buy a used car because you are worried about buying some else's problems, consider slightly used. Remember though, any car new or used can be problematic.

Some of the best deals out there right now are happening for people that are buying slightly used cars. All cars take their biggest depreciation in the first year. And in this wierd economy they are taking an even bigger hit. So what does this mean to you? It means a spectacular deal!

I would also suggest paying a bit extra and getting a CPO (certified pre-owned). The only exception to this would be if you are buying a slightly use car and plan to trade before the new car warranty expires.

CPO cars typically give you an additional 2 years of factory warranty and many times you will have coverage up to 100,000 miles. So if you are a high mileage driver, buying a used car that is certified by the factory would give you tons of warranty. These warranties are typically 6 years from the original in-service or retail date and up to 100,000 miles. There are some exceptions so be sure to ask and read the fine print.

Another fact to note is that the CPO warranties kick in after the expiration of the original new car warranty and they are not as comprehensive. Do not think that the CPO warranty is an exact extension of the original. They are usually very good but are not "bumper to bumper".

Should I buy a new car?

There are some really crazy deals out there right now on new cars. Inventorys are still high in most cases and the manufacturers and dealers MUST sell them. The key virtue to getting a great deal right now is patience.

Do you homework and your due diligence before you start negotiating your best deal. Research new cars online to educate yourself and select the vehicles that are in the price range you're seeking. Check user reviews to find any reliability issues. Check the manufacturer's site for lease and finance specials. Check with Edmunds.com for incentives and rebates.

After you have selected a few new cars to consider, go online to get your new car price quotes. Pay attention to how dealers respond. This will tell you how professional they are and will give you a good idea of what you can expect when dealing with them. Respond initially via email and make your requests more detailed. The "Price Quote" forms do not always transmit correct and detailed information to the dealer. Again, pay attention to how well the dealer responds to your requests.

Once you have started communicating effectively, you will begin to find the dealer(s) you are most comfortable with. Now it's time to make the phone call and set an appointment to test drive the new car and meet the dealer.

Through this process of visiting the dealers and test driving the cars, you will get a good feel for which dealer and salesperson you want to do business with. Although you plan to shop any prices given, be sure to let the salesperson that you like best know that he/she will get the last opportunity for your business as long as their price is similar to any other price you get.

It is important to purchase from the dealer/salesperson that you think is the most sincere. They will typically go the extra mile to take care of you after the sale. Building a long term relationship will certainly make things easier and more pleasant in the long run.

For more information go to our blog at CarCentral.com. We will be releasing a no cost New and Used Car Buyer's Guide soon.