A car is one of the biggest — and potentially frustrating — purchases you can make. There are so many questions to ponder. New or used? Should you trade in your current vehicle, or try selling it on Craigslist? How can you get the best deal?
1. Do your homework. Before you step foot into a car dealership to shop for your new whip, do some research online. “There are so many resources that weren’t available 10-20 years ago,” said Matt DeLorenzo, the managing editor for Kelley Blue Book’s website KBB.com. Those tools, if used properly, can “make your car buying experience more transparent and smooth,” he said. So take advantage of the information that’s out there.
2. To sell or trade in? When it comes to the fate of your current ride, that is the ultimate question. If you sell it on your own, you’ll likely net more money than if you trade it in. But the downside is you’ll have to find a buyer, which can be a hassle. First, figure out what your car is worth. The difference between a private sale and a trade-in can be sizeable: According to KBB.com, a 2010 Toyota Camry in very good condition (with 50,000 miles) could fetch $10,467 in a private sale, while the trade-in value is only $9,045. DeLorenzo said you can bring your car to a dealer for a free appraisal. And KBB.com has a trade-in program where participating area dealers can make a cash offer on your car.
3. Shop around. There are lots of pricing guides out there: KBB.com, Consumer Reports, Edmunds.com, TrueCar.com, to name a few. Dave Christmas, co-owner of Christmas Motors in Maynard, says the prices can differ on those websites, and he doesn’t use any of them. Christmas gets his pricing information from the National Automobile Dealers Association’s appraisal guides, which are worth checking out. To find them, visit www.nada.org and click on the “NADA guides” button.
4. Be careful. If you’re trading in your old car to get a new one, treat the trade-in and purchase as separate transactions, and negotiate them separately. Combining the two can put you at a disadvantage and cost you money. If you’re buying a used vehicle, Christmas recommends using CarFax to check the vehicles’ accident history and service records. “It’s not foolproof, but it’s pretty darn close,” said Christmas. If you ask a dealer for the CarFax report, and they don’t give it to you, said Christmas, “that’s a red flag.” And before you buy a used car, have a mechanic check it out.
5. Don’t drive a lot? Consider a lease. If you drive under 10,000 miles a year, leasing a vehicle might be worth considering, according to DeLorenzo. It can also be a cost-effective way of buying a vehicle, he said. Check for incentives and see if you have the option of buying the car at the end of the lease.
6. Time it right. When is the best time to buy a car? DeLorenzo suggests Labor Day, because that’s when the next year’s models start rolling in. Savvy shoppers can also track inventory levels to find out what vehicles have been slow to sell. “A dealer is more likely to make a deal on something that’s been sitting on their lot,” said DeLorenzo. Whatever you do, don’t rush into anything. “Read all the documents,” said DeLorenzo. “Ask for every fee, and what it’s for.” If the process drags on longer than you planned, you can always say: “It’s been a long day; we can pick this up tomorrow.” DeLorenzo said most dealers enjoy doing business with knowledgeable customers because they’re “easier to deal with than someone who has unrealistic expectations of what their car is worth.” And this tidbit: “Don’t be afraid to walk.”
Emily Sweeney can be reached at emily.sweeney@globe.com.