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Old 02-17-2015, 09:45 AM   #17
cmitch
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Join Date: Oct 2010
First Name: Clayton
Location: NW Alabama by the river
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Default Re: Buying my first car, help needed

Rules I follow:
1. I never buy new. It's the most foolish thing to do. You'll lose 10% of the value before the first oil change. Example: I bought a 2010 F150 that was traded in 6 weeks after it was bought. I got it for $7800 less than sticker and it had 1800 miles on it. Granted, I could've gotten a 'NEW' truck for $4500 off sticker but is 1800 miles worth $3300?
2. I never lease. Dave Ramsey doesn't call them 'fleeces' for nothing. Usually, you'll owe an up front down payment of at least $1500 and first and last month's payment. If it's an open end lease, that means you'll owe the difference between residual value and the estimated value at the beginning of the lease. Plus, even though you're leasing, many states still require you to tag it as if you were the owner meaning you're paying the ad valorem taxes on a car that isn't yours. Not really fair.
3. I always buy used. You can score a certified pre-owned at many dealers for thousands less than new with a better warranty. Or, you can get a vehicle that's about 4 years old that has low miles and years of service left in it. I've found these are the best bargains. I bought a car that sold new in 2005 for $85000 for less than a 2 year old used Camry's price 6 years later. I've had it 3 years and still consider it my best buy, by far.
4. Always negotiate out the door price. What that means is, when you make an offer to the salesman, tell him that it's an out the door offer. Taxes, title, doc fees, etc. Don't let them shill you when you get in to sign paprs. If they try to stick you for that doc fee after you've closed the OTD price, walk. I promise, they'll be calling you back.
5. As you know, do your homework. Find out what comparable models are selling for. Sales people try to take advantage of inexperience and youth. Don't be embarrassed to take your dad or uncle with you. That usually puts an end to that BS.
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