Last week I bought my first car, a Candy White 2007 GTI. Buying a new car is a pretty big ticket toy and you definitely don’t want to end up with buyer’s remorse. How am I feeling about my GTI? I’m totally in love with it. This is my story of how I found My Fast and a guide to buying a new car.
Step 1: Short List Your Car Online
Make a short list of what you want, then find it online. I wanted a small, sporty, sexy car that is also practical. I checked out the Mini, Honda Fit, Mazda 3 and a few others before finally deciding on a 2007 GTI.
Step 2: Trust Your Gut
When I saw the Candy White GTI it was love at first sight. It felt right, my senses told me that this is my car. Trust those inner feeling. Buying your first car is an emotional decision.
Step 3: Dealing with Reality
Now that you’ve chosen your baby it’s time to deal with reality. Can you afford it? Is it a death trap? Is it all marketing? It’s time to do some real research to make sure that your car is not all show. Follow these tips:
- Price your car online. Every major car brand’s website allows you to build your car online and determine the MSRP. Use this number as the minimum you will pay. In British Columbia, it is MSRP + features + 13% sales tax (ow!) + PDI + Freight + other taxes/levies (air condition) + dealer fees, etc. Those extra fees and taxes can quickly add up to 20% more than MSRP. Then you have to consider auto insurance.
- Figure out how much you can afford. Unless you’ve got the entire sum (yay!) sitting in the bank you’re probably going to finance or lease your car. Make sure your monthly payments don’t bankrupt you. Generally in Canada the factories can give you the best borrowing rates. As my bank told me, the factories have divisions that specialize in car loans. Make sure you understand what APR is, and use tools for calculating your monthly payments.
- Talk to current owners. The more they are like you (location, age, lifestyle) the better. This will help determine how happy you will be with your purchase. I spent a lot of time browsing through forums dedicated to the GTI. My favorite: golfmkv.com. There are enthusiasts everywhere and it should be easy to find a current owner. Try starting in the car section at Yahoo Answers. Be sure to ask about their experience with the dealership as well.
Step 4: Buying Your Car
Now that you’ve decided on your new ride and determined that you can afford it it’s time to get the best deal possible. It’s a little beyond my experience to give tips on negotiating with car salesmen but I have some tips for you to keep in mind.
- Arm yourself with information. Know the average spread between the dealer’s invoice and the sticker price. Canadians should use Car Cost Canada. For a small fee you can see what the dealer’s cost is and know how much money they will be making. Know what to expect and what you are paying for. Don’t be a fool and don’t be lazy.
- Believe that car salesmen are all crooked. Well maybe not all but from my limited experience even reputable dealerships will try to squeeze as much money out of you as they can. Keep in mind that you have the money and the option of walking away. Check every line item. Don’t be afraid to ask them to explain something. I did this and saved $100.00 on a double A/C charge.
- Negotiate realistically. The amount you can negotiate off depends on many factors. Supply and demand, your negotiating ability, dealer’s cost, etc. Learn the tips from CarBuyingTips.com. Negotiating is a soft skill but you can stack the deck by arming yourself with information.
- Pay attention to the bottom line! Unless you’re paying cash you’ll be financing or leasing your car. Dealers can be sneaky and lower your monthly payments while still keeping the total you pay high. Be diligent and do the math. Determine for yourself how much your new car will cost you in the end.
Step 5: Taking Care Of Your Car
I’m just learning how to care for my new baby. I’ll be sure to post more about detailing, waxing, washing and cleaning. Good luck finding your new ride and if you’re in Vancouver look out for a hot four door Candy White GTI! Vee-Dub!
