Buying my very first car...need help!

[Katieinwonderland]

I'm buying my very first car this week

My parents bought me a car when I was 17, but this is the first one that will be totally mine (I'm 23 now!) - I finally decided on a Chrysler sebring, which seems to have everything I want and it seems like a good price.

I'm paying cash for the car because we're also buying a house this year, and I don't want the debt...but how do I pay cash?! Do I literally pay cash, or write a check or what? I'm sure this is a totally stupid question, but I have never thought of it before! And do I get insurance first or get the car, then pay insurance? It seems weird to drive off the lot with no insurance, but when I got my quote, they said something about needing to see proof of purchase on the car?!

This is my very first adult purchase so I'm pretty scared! I told DH I could totally do all this by myself (he said he gave me 24 hours before I needed to ask him for help so I want to prove him wrong!) but I'm hoping there are Disers out there that can answer my questions and not laugh at me for being so clueless!

 

[Golf4food]

Generally you can just write a check - or at worst get a certified bank check/cashiers check. But negotiate the price down first before saying you'll pay cash.

As for insurance, I always call the same day we buy while we're in the dealership waiting on all the paperwork and such - only takes a short time to add a car to a policy but the paperwork for F&I can take quite a while. Once you have the VIN number of the one you are buying and know the features (especially any safety or security features) that should be all you'll need.

 

[The Mystery Machine]

Cash is KING. I have know people that are paying cash to shop by phone with area dealers to get a better price. They pit them against each other for the sale.

Know what the car is worth at KBB, Edmunds, AutoTrader, etc. Look at the resale on the car from last year's model.

Here is KBB for example....not sure the exact model you want.

http://www.kbb.com/KBB/NewCars/PricingReport/2009_Chrysler_Sebring_246612.aspx

 

[Where'sPiglet?]

I will be buying a car for the first time in July.

I am bookmarking this because I have the same questions....except that I am expecting to need to finance the car. I don't know how that works.

As for insurance, I always call the same day we buy while we're in the dealership waiting on all the paperwork and such - only takes a short time to add a car to a policy but the paperwork for F&I can take quite a while. Once you have the VIN number of the one you are buying and know the features (especially any safety or security features) that should be all you'll need.

What about if you don't currently have a policy to ADD a car to? What if this will be brand-new insurance? And how long does it take to kick in if you call? Is it immediate and you get the paperwork later? Or do you have to leave the car at the dealer for a few days?

I was talking to this lady here that was driving to the insurance place to get a policy for her car. On the way to the insurance agency, she hit a patch of ice and went off the road into a swampy/marshy area and the car filled with water. She was not hurt but her car was totaled and she did not have insurance coverage yet! I do NOT want a similar situation to happen to me!

 

[Christine]

I will be buying a car for the first time in July.

I am bookmarking this because I have the same questions....except that I am expecting to need to finance the car. I don't know how that works.



What about if you don't currently have a policy to ADD a car to? What if this will be brand-new insurance? And how long does it take to kick in if you call? Is it immediate and you get the paperwork later? Or do you have to leave the car at the dealer for a few days?

I was talking to this lady here that was driving to the insurance place to get a policy for her car. On the way to the insurance agency, she hit a patch of ice and went off the road into a swampy/marshy area and the car filled with water. She was not hurt but her car was totaled and she did not have insurance coverage yet! I do NOT want a similar situation to happen to me!

First thing, go loan shopping. Get on the internet, call your bank, call your credit union and find the best rate for a car loan. Then, you can usually make an online application that is good for about 30 days. I always go through my credit union and I get approval. Then they will send me a check to pay for the car at the dealership. Often times though, when I get to the dealer they might have a better rate, so I will take that and just cancel the credit union loan.

Bottom line, if you are going to get your own financing, which can often be better than what the dealer offers, get that going a week or two before you hit the car lot.

Same on the insurance. You need to decide who you are going to go with and start calling. Tell them that you do not own a car but are getting ready to purchase one. I would not wait until you buy the car. Also, if you are getting a car loan, they will not let you drive off uninsured. I bought a car last year and I had to provide my proof of insurance right at the dealership before I could go anywhere.

So do all this stuff up front.

 

[Where'sPiglet?]

Thank you Christine. That helps a lot.

I am moving out of state...but my bank is located in both states so that should not be a problem. I do not belong to a credit union at this time, which kind of stinks because I think they tend to have the best rates.

 

[HighClass]

You can REALLY negotiate price if you are paying cash
Ask them for their "best price"-then go to another dealer and do the same

Sometimes when you seem to walk away-they "might" go down even more.

 

[Nie0214]

I've always heard to negotiate a price before mentioning your payment method.

This site has good information, put aside an afternoon to read it: http://www.carbuyingtips.com/

 

[Mom2Nick]

You can REALLY negotiate price if you are paying cash
Ask them for their "best price"-then go to another dealer and do the same

Sometimes when you seem to walk away-they "might" go down even more.

Correct. When they know you are not financing they know you have a set budget in mind that you just will not go over. Don't tell them what you have saved of course and only reveal what you "want" to spend if it's less then what they are offering and you are doing so as a negotiating tool.

They never play their hand at the start either - don't take any first offer from a dealer.

Dealers want to sell what is on their lot much more then they want to sell something they have to get from another dealer. Know exatly what they have on their lot by researching it on the website. If they don't have exactly what you want - go anyway to see what they can do for you. If they do have what you want - try and pit what they might have with something they might have to get from another dealer even if you are not interested in the other car. It's a hassle for them to get that other car so they often are more aggressive and will push and price down the car they already have.

Don't buy any undercoatings or warranties.

If you are trading in the car you are driving now know it's value beforehand and decide how low you will go on an offer for that tradein.

Traditionally you do not pick up the car then. They usually take a day or two to scrub it up really well and wash it. During that time is when you secure your insurance - you can get a temp card faxed to them or to you from your company. The dealer will help you with this and teh registration as you absolutely have to have both before you drive the car off the lot.

Have a notebook with you and explain that you will be visiting other dealers - that scares them and they try harder to get you to buy before you leave.

Don't be pressured to buy right then and there if there's something you are not comfortable with.

Good luck! Don't be scared - it can be a really interesting experience.

 

[Christine]

I usually know what car I want to buy before I even go to the lot. I then do research on www.edmunds.com, consumer reports, etc., and I get a price in mind that I want to pay. I do not budge from it.

Some of the best pricing I've gotten is to connect with the dealer's internet pricing department. You can do all your haggling on line and then just go get the car. It is great.

When you buy a car, do your research and get your price in mind before you ever go to dealer. Hold firm on it and be prepared to walk out. As long as your not asking a crazy low price, you can usually get what you ask for. Be strong and don't fall for their tactics. It's a game you can learn to love and WIN!!!

 

[vettechick99]

Oh man, if I was you, I'd go straight to autotrader.com and buy from an individual, not a dealership. You'll get a better deal, and save on taxes. We did that with DH's car and saved sooo much money!

Good luck!

 

[eeyore25]

May I make a suggestion? We just bought a new car and did it through AAA. We got a great price on the car and there was no haggling about anything. We told the AAA autosouce rep what we wanted, how much we wanted to spend and he made it happen. I will NEVER go to a dealer again to buy a car. And you don't have to be an AAA member either

On insurance, not sure how it is in your state but here in Colorado when we buy a new vehicle, most of the time its on a Saturday or late after work and the insurance company is closed. The insurance on our car that was traded in covers our new car for only a few days. Off the top of my head I am not sure how many days, but we are covered. At least that is what our AAA autosource rep told us. When we buy from a dealer we show them the insurance card for the old car and we are able to leave the lot same day. But as I said, taht is Colorado, not sure how it is in your state.

Jamie

 

[Nie0214]

May I make a suggestion? We just bought a new car and did it through AAA. We got a great price on the car and there was no haggling about anything. We told the AAA autosouce rep what we wanted, how much we wanted to spend and he made it happen. I will NEVER go to a dealer again to buy a car. And you don't have to be an AAA member either

Does the AAA rep get some sort of commission? Then you'd be paying the dealer and the rep.

 

[eeyore25]

The AAA rep does get commission, but we don't pay that. The dealer paid him the commission. We picked the car up from the dealer, paid the dealer (made the check out) our downpayment, but that was it. Everything else was done with AAA, all the finance paperwork and he even took my check.We didn't pay regular sticker price for the car, AAA has an agreement with car dealers for fleet prices.

really buying a car from AAA was the best thing we ever did and I would do it again in a heartbeat

 

[horseshowmom]

Cash is KING. I have know people that are paying cash to shop by phone with area dealers to get a better price. They pit them against each other for the sale.

Know what the car is worth at KBB, Edmunds, AutoTrader, etc. Look at the resale on the car from last year's model.

I agree with this. Cash gives you a lot of clout if you know exactly what you want (I wanted a specific crossover vehicle with side airbags and still under warranty with less than 15,000 miles)!

Use www.autotrader.com and www.cars.com to search for the make/model car that you want. Don't be afraid to expand your search out to 250 miles (I actually did 500 on my recent purchase).

After about a week, I narrowed my choices down to 3 vehicles. One was in Georgia, one was in Texas, and one was in Missouri (I'm in Mississippi). All of them met my criteria. I also wanted to buy from a dealer, so that I could check their background out (since I was probably going to have the vehicle shipped to me).

I told each of the dealers that I would be buying one of the these cars and that I wasn't going to be haggling over it. I told them to make their first price their best price because I was going to buy whichever car had to lowest price (including shipping costs).

I got two really good prices and one GREAT price. After I told the guy in Texas that I was buying the one in Missouri, he wanted to drop his price - nope, sorry. The car I got is in perfect condition and has 13,000 miles on it. The original window sticker was in the glove box, and I paid about half what that was for the car. I saved about $3000 to $4000 over what I would have paid for it in my local area.

My husband has told several people that he's never buying a car again. He's leaving it up to me from now on! I can honestly say that is was the easiest car purchase I ever made!

 

[tennvalgirl]

I agree with this. Cash gives you a lot of clout if you know exactly what you want (I wanted a specific crossover vehicle with side airbags and still under warranty with less than 15,000 miles)!

Use www.autotrader.com and www.cars.com to search for the make/model car that you want. Don't be afraid to expand your search out to 250 miles (I actually did 500 on my recent purchase).

After about a week, I narrowed my choices down to 3 vehicles. One was in Georgia, one was in Texas, and one was in Missouri (I'm in Mississippi). All of them met my criteria. I also wanted to buy from a dealer, so that I could check their background out (since I was probably going to have the vehicle shipped to me).

I told each of the dealers that I would be buying one of the these cars and that I wasn't going to be haggling over it. I told them to make their first price their best price because I was going to buy whichever car had to lowest price (including shipping costs).

I got two really good prices and one GREAT price. After I told the guy in Texas that I was buying the one in Missouri, he wanted to drop his price - nope, sorry. The car I got is in perfect condition and has 13,000 miles on it. The original window sticker was in the glove box, and I paid about half what that was for the car. I saved about $3000 to $4000 over what I would have paid for it in my local area.

My husband has told several people that he's never buying a car again. He's leaving it up to me from now on! I can honestly say that is was the easiest car purchase I ever made!

That's awesome!

 

[clh2]

Definitely "know the most you would pay" for the vehicle and the options you want.

And - if the car you want has some dumb aftermarket thing on it - like a $289 plus taxes "Sid Stripe", keep mentioning that "whatever dumb thing they added" is a dealbreaker.

My DH and I bought a car this week, and we knew exactly what we were going to be paying for the car when we walked in the door. And...we got the Sid Stripe for free.

**Sid stripe is a painted on pinstriping effect.

 

[horseshowmom]

That's awesome!

The internet has really opened up options for a car buyer. We used to be confined to what was available on local car lots, now we can find much more.

 

[Disney Doll]

How do you pay cash? Either with the cash it self or a bank check of some sort. Many car dealers won't accept a personal check.

As far as car pricing...you have gotten some good advice here.

 

[Katieinwonderland]

Wow, thanks SO MUCH for everyone's advice! It was beyond helpful...now if any of you would like to come to Florida next weekend and help me haggle, that would be even better!!!

I have ONE experience of haggling, about three months ago. I had decided I wanted a Toyota Prius, and off I went, totally convinced I could get the lowest price. Well, I sucked at it! I thought I was prepared but I hadn't done enough research and the mean car guys treated me like such an idiot - one guy actually said to me "I know you're blonde but don't tell me you're dumb. This is the best offer you're going to get. If you walk out of here without taking it, you're as stupid as the rest of the women out there"!!!!!!!!! I was so angry I couldn't even speak! That's why three months have passed before I got the courage to go again!

Thanks again...I will update with my quest as it continues! You were all wonderfully sweet and helpful