Wise Car Buying Process

Marcus Alstadt
Mr. Liechty
Consumers
February 2nd, 2013
Wise Car Buying Buying a car is one of the most important decisions a consumer will make. Consumers will often feel overwhelmed when going through the car buying process. Being educated on the process is arguably the most important factor of getting the biggest bang for your buck. Car salesman are not looking out for the consumer. Their only objective is make the most money off you as possible. When car buying the consumer needs to remember three wise tips. Be educated on the haggling process, know which buying process is the best for you, and determine if there is an actual need to purchase the car. To get the best deal, the car buyer must be knowledgeable and comfortable with
There are three types of ways to buy a car: cash, lease, and most common, financing. If you can afford cash, that is the best way to buy. It will be the cheapest and you have 100% equity in the car, it is all yours. The only downfall is that it can deplete your banking account. In the long run, buying with cash the cheapest and easiest way to buy a car. Another type of way to buy a car is financing or taking a loan. This is the most common way Americans buy a car. The car buyer makes monthly payments which means you slowly gain equity. Financing your car help keeps your savings intact, you will eventually own your car, and with a decent credit score you can get a decent deal. But on the contrary, you will not own the car fully for awhile, you still have to pay 10%-15% down, and with a low credit score it will be a higher loan. The third and final way to buy a car is leasing. Leasing is often conceived as a terrible way to buy a car.This is not true. Like any way to buy a car, there are pros and cons. When leasing you get a new car every couple of years(Hearn). The car buyer has no worries about resale. No down payment, and often get very good warranties which could save the consumer a lot of money(Hearn). Also if you use the car for work, there is potential for tax deductions. But when leasing a car there is no equity. At the end of the contract the car is gone and what
The car buyer could find out there public transportation might be the cheaper than owning a car. Public transit you get the convenience to do what you want for whatever time it takes you to travel. It is also usually cheaper to take a train, bus, or trolley rather than paying for your own car, gas, and maintenance. It helps create less congestion and saves energy. The biggest problems with public transportation may be you have to plan schedule around the schedule of the transit system. Many times it may be dirty, unsanitary and often very crowded. Also there are possibility of crimes. Another problem when choosing public transportation as you mode of transportation is it is not exact which means you could have to walk to get to your destination, and in the winter with frigid temperatures, that is not ideal. When owning your own car you get to have the comfort, independence, flexibility, and privacy of being in your own car. You get to go where you want when you want which is a huge plus side. But when owning your own car you have to buy your car, pay for fees, parking, tolls, maintenance, gas, and insurance, all of which can become pretty expensive. Depending on your situation, purchasing a vehicle may or may not be the right choice, researching and figuring out what type of transportation is the best is an extremely important