Carsut – Understand cars and drive better

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  • Step 10: Life after having a car

    Peep car from window
    It is necessary to understand the life after having a car. This is because there are many things you may not expect and you need to prepare for it before buying a car. Some new car owners will walk to the window and peep at the car once awhile to make sure it is still there. “What the?” Don’t be shock; it is a truth based on the results from our research. There could be many reasons, the owner is afraid of the car being stolen, worry about the car being scratched or just look at it to satisfy themselves. For some people, spending a huge amount of money in one shot to buy a depreciating object (car) is hurting, so they will definitely try to take good care of the car. Other than that, these are several things you may not know about having a car especially for the first time car buyer:

    1. Someone regret it. If you did not manage your budget properly as mentioned in Step 1, you may start to regret buying the car when it starts to suck money out from your pocket every month for the installments.

    2. Extra money for extra accessories. To celebrate the new purchase, people often spend extra money on accessories to decorate the car. This includes head rest, floor mat, new carpet, steering wheel cover, windscreen tint, car seat covers, and many other things that may cost few thousand dollars or more. Some people will also spend a few hundred dollars for high quality steering lock or transmission lock as a theft deterrent. Furthermore, car wash and car detailing are something which will keep costing money.

    3. Extra protection. Do you notice that there are many bottles sitting in the store room? Detergent to wash car, car wax kit, polishing kit, fluid for windscreen protection, and tire dressing are extra money for a car owner. A person who takes public transport does not need all these things.

    4. Extra trip. First time car owner will find excuses just to drive the car out because they want to drive it. Well, it doesn’t really matter as long as you enjoy it.

    5. Parking Charges. You may need to pay parking fees wherever you park your car. For those who are staying in apartments or condominiums, there will be monthly parking charges. Do take this into your calculations before buying a car.

    6. Car maintenance. There is always a maintenance fee, for example, engine oil, oil filter, car batteries, tires, and others. The maintenance fee for cars with bigger engine often cost higher.

    7. Customize your own car. Other than buying aftermarket accessories to decorate the car, some car enthusiasts will customize their own car. Sound systems upgrade, sport wheels, customized dashboard or extra gauges to make the car look cool.

    These are some of the opinions from our research:

    Jonathan Blanchfield said: “Buying a used car is very complicating. I will prefer a new one to avoid all the hassles.”

    Jeremy Teoh said: “I prefer a new used car because I do not want to throw all my hard-earned money into depreciation.”

    Isabella Joel said: “I am a girl, I do not understand a lot about mechanical things and car maintenance, buying a new car seems to be more practical for me.”

    Jonathan Lipnicki said: “I love cars, I love new smells, I love new features but I prefer a used car. With the same amount of cash, I prefer a used branded car than a new cheap car.”

    What is your choice then?

    Having gone through what you have to go through from Step 1 to Step 10, you should get your new car now. Most people find having a car is more convenient, and yes, it is. What you need to do is to enjoy the ride!

    Carsut’s car buying guide is written by Howsen who is an experienced car dealer. Thanks to people who participated in this research and contributed their opinions in making this buying guide a success.

    • Suming – a used car dealer since 1983.
    • Peter Czech – a mechanic who specializes in Mercedes-Benz, BMW,Toyota, Honda, and Suzuki.
    • Phoenix– an insurance agent who has been dealing with car insurance for more than 10 years.

  • Step 9: Making the deal

    BMW Mini Cooper
    It comes to the deal when you have decided to buy a car. Do not be over excited with the new car you are buying and overlook some other important things including insurance, loan rates, processing fees, registration fees, ownership endorsement fees, extended warranty and sales tax which vary from state to state. Do not forget about incentives and rebates if you are buying a new car. If you are buying it with your company name, these fees could be doubled.

    Steps to deal a new car

    Ask for a complete quotation from the salesperson who arranged the deal with you. Bring the quotation home and view it in a stress-free environment if you are not in a hurry to seal the deal. In that way, you can clearly review the amounts and see if other expenses are too high. If the salesperson is giving you the best car price but with sky high insurance or loan rate, you can still buy the car from him but not the insurance and loan. Double check the invoice and see if there are redundant charges such as processing fees, handling fees or miscellaneous fees. All these refer to the same thing. You can request the dealer to have these extra fees removed. If they refused to do so, look for another dealer.

    If there is no problem on the invoice, you can request the salesman to deliver the car to you at your convenience. You will have to check the car properly before signing the contract. Make sure you have gone through the car from head to toe before you nod your head to confirm the car. A person who had just bought a new car told Carsut that the dealer who delivered the car to his house showed him how a thief can open the car and drive it away without the key. They showed the whole process in front of him and tried to sell him additional security items to protect the car. Besides, a salesperson will always take this opportunity to sell you extended warranty, steering lock or a GPS locator. We recommend you turn down all these things, otherwise it will end up an extra few hundred or few thousand dollars. You may only consider extended warranty when you feel it is really needed in your situation.

    There will be several forms to sign including the loan contract, insurance contract, transfer ownership of your trade-in (if you have one), and new car registration form. DO NOT HURRY! Nothing to rush about. Read every form one by one carefully before signing it. Last but not least, check if all the options and accessories are there when the salesperson passes you the key. If you are buying a full options model, make sure everything is there, for example, paddle shift, GPS system, 18” wheels or special edition body kit.

    Steps to deal a used car

    Things could be easy if you are paying cash for the deal. Make sure what you are getting is the same car that you have inspected (Refer to Step 7.1 Inspect a used car before buying it). Make sure there are no scratches and no parts have been replaced since the day you inspected the car. Compare it with the pictures you took on the inspection day if you are suspicious about the car.

    If you are planning to finance the car, compare to see who is giving you the best rate; dealer, bank, credit union, online lender or some insurance companies that provide car loans. Financing through a bank is highly recommended because it is easier and usually cost less.

    The dealer will prepare all the documents and sales contract for you if you are buying from them. Still, you will need to read through everything written in the contract before signing it. Ask the dealer to amend the contract if you find something is not right.

    If you are lucky to get a great deal from a private seller, you may request the seller to prepare an automobile bill of sale. This is very important because it serves as a legal contract between buyer and seller (Refer to Step 9: Bill of Sale for more details). You can also print it out and use it for the deal. It is either the seller or the buyer do the leg work to transfer the title and registration. You can request the seller to do this before making the payment. In some cases, buyer and seller will have to do it together to have everything transferred on the same day. You will have to make sure you have insurance for the car you bought.

    Last but not least, check again everything from head to toe and compare the car with the pictures you took on the day you inspected the car. If there is nothing wrong, all you need to do is get the key and go for a ride.

  • Step 8: Selling your car

    used cars
    There are ways to sell a car and turn it into cash. It is either fast or slow way. The biggest temptation for dummies when prepare to sell a car is to rush things. Based on our experience, no dealers or buyers will offer a good price for an urgent sale vehicle. We understand that there are times when one needs money urgently but at least show poker face. Here we created five easy steps to sell a vehicle.

    Step 1: Determine the market value

    Go to some famous websites to find out the average market value for your vehicle. You can also make use of online car classified websites like eBay to see what the price others are selling. Make use of the sorting function in eBay and you can find out the cheapest and the highest price. Forums, local newspapers and car classified magazines are some other good sources. A vehicle usually has three prices which include:

    • Lowest price: This price is what the dealer will offer to the seller for the first time. It is the lowest price based on the model year. As a seller, you should treat it as the lowest offer and always ask for a higher price.
    • Standard price: This is the price between the highest and the lowest.
    • High price: High price usually comes from private sellers who hope to get more cash or create more room for bargain. If you think your car is in good condition compared to others, you may aim for this price.

    Step 2: Know where to sell a car

    In our opinion, there are four ways to sell a car.

    Sell it to dealer

    The fastest way to sell a car is to go to a reputable dealer. Trustworthy dealer often has adequate cash on hand and they are able to buy your car immediately. However, you will never get high price because a dealer needs profit. What you lose is usually what they earn. Dealer will offer the lowest price, bargain at least three times with them. Ask for more if your car is in good condition, for example, your mileage is lower than average, your car has full options, your car is the most wanted and popular color, your dashboard is still shining or you have just replaced all tires. Dealers will usually offer higher price if you are trading in the car and buying a new car from them. Dealer’s highest price means higher than the lowest but lower than the standard as mentioned in Step 1. Trade-in is often the fastest way to get rid of old one and get a new ride.

    Sell it on eBay

    The most attractive thing to sell an item on eBay is the auction system. You can set the starting price of your vehicle and let others bid it. REMEMBER to set the reserved price otherwise you may have to sell it at the price lower than your reserved price when the bidding ends. Beware of scams we mentioned in Step 6 Buying a used car. Avoid meeting up with buyer at secluded places or at night. The key to successfully sell a car on eBay is to present what is the best you have. State all the details of the car and give good description about the car. Wash the car and shoot a few nice pictures of it. It is recommended to remove the registration plate number by Photoshop before uploading it.

    Sell it online

    Other than eBay, there are many popular websites to sell a car privately including Autotrader and Motortrader.

    Other ways to sell it yourself

    In old days when the internet is not popular, people will print the word “FOR SALE” and stick it at the windows on each windscreen. You can still do it today. Sometimes it works well. Local newspapers, car classifieds or magazines are other good ways to sell a vehicle.

    In the used car market, there are many brokers who try to arrange the deal between a buyer and a seller. You may receive calls from a broker after you have placed your advertisement. Ask if the caller is a broker once you receive a call. It is not recommended to give permission to sell or hand the car to a broker. We also recommend you to screen the caller, avoid arranging the viewing at your house or you should give up the sale if the caller sounds suspicious.

    Step 3: Things to do before selling it

    • Imagine yourself a genuine buyer, will you choose a dirty car? The first sight is important and therefore, wash it before arranging for anyone to view it. Consider polishing or detailing the car inside out if it looks dull. Clean the wheels, clear the windshield, and clear the interior. Hygienic seats, shining tires, spotless dashboard, dust-free floor mats and sparkling engine are what buyers expect to see.
    • We have viewed over hundreds of used cars in a year and we found more than 80% of the cars are full with junks. Tissues paper, boxes, toll receipts, documents, tree leaves, children’s toys, books, among others. Make sure these things are no longer in the car.
    • Prepare all related documents you have, including service history, parts replacement receipts or log book.
    • If your car has involved in a minor collision, dented or scratches, you may consider fixing it up to get better selling price if the repair cost is not high.
    • Last but not least, make sure the fuel tank has enough fuel for genuine buyer to test drive. Fuel gauge with the pointers point to F (Finish) shows how stingy an owner you are.

    Step 4: Promote the car

    Buyer will not know how well you have maintained the car. You need to convince them by showing the service record as a proof. Let them know the engine oil, oil filter, air filter and all fluids are changed according to schedule. Tell them if you are using grade one or high quality product to make the car better.

    Step 5: Be confident with your price

    As a buyer, you know how to bargain for the best price when buying a used car as mentioned in Step 7.2 Questions to ask when buying a used car. Now you as a seller, should have confidence with your selling price. Set a price and do not let the buyer go below it no matter what excuse they give. Often you will hear something like:

    “I like your car very much, but the price is a little bit high for me.”

    “I like your car but it is beyond my budget.”

    “This is the third car I have viewed but it is a bit expensive compared to the other two.”

    “What is your best price?”

    “I would offer $…, will you consider that?”

    All these bargain techniques from a buyer are normal. You should stay firm at your expected price and if the buyer is a prospective, the deal will be sealed. Otherwise, wait for the next potential buyer.

    Step 6: Close the deal

    Collect a down payment from the buyer once they have confirmed to buy the car. It can be of any amount, 5 to 10% of the car price sounds reasonable. If the buyer requests to send the car to his mechanic for inspection, go ahead. It is important to have a vehicle bill of sale and state everything clearly with signatures from the buyer, the seller, and the witnesses. If the buyer is paying cash for the deal, you could transfer the ownership to him after the payment has been made. If he is going to buy it with loan, you may have to keep the car until his loan is approved and the payment is made to you. Keep the log book until payment is completed. Last but not least, pass the car together with the key to the new owner and wish him all the best with the new ride.

  • Step 7.2 Questions to ask when buying a used car

    These are some of the questions to ask before buying a used car. Some of these questions are taken out of our questionnaire we mentioned in Step 1.

    1. What is your monthly budget for a car?

    If the monthly budget is low, consider a cheap used car below $10,000. If budget is not the concern and you are willing to pay anything to get the car you want, you may reconsider buying a new one rather than used.

    2. How many miles you will drive it in a year?

    A used car could not perform better than a new one if you are going to put a lot of mileage on it. If you are putting more than 30,000 miles a month, used car may not be practical.

    3. Are you familiar with car maintenance?

    If you are not, you could probably end up spending more money to maintain it. (more…)

  • Step 7: Buying a used car

    used cars
    “This is one of the best used Toyota in town.” Sounds familiar? Ever heard something like this before from a used car dealer? Buying a used car is more complicated and challenging compared to buying a new one. This is because used car market is a business twisted with scams. Shoppers who love to buy a used car online have to take extra care. If you have gone through Step 1 to Step 6, you may continue your journey to choose the best ride with some of the used car buying tips. (more…)