Car confusion

February 29, 2008 6:42 PM

Ok. My car is literally falling apart, and I'm really confused about the whole car buying process.

I haven't decided which car I want yet, but I do know I want it to:

1. Be Used
2. Be Reliable
3. Be Sporty/Fun/Not Ugly......if possible
4. Have a good amount of room, not too big, not too small
5. Have the ability to handle a few cross-country trips without worry
6. Be at or under $10,000

So onto my questions...

If I'm not sure exactly what car I want, but I want to get pre-approved for a loan on a car from my bank or credit union, can I do that if I know the price range I'm looking for? What if I decide to go higher or lower on the price range, do I have to get pre-approved again for a loan if I was pre-approved before? And if I find the car I want and I have the pre-approved loan, how does the whole process work? Do I call the bank/credit union from the dealer and tell them I want the loan? If I tell the dealer I'm paying cash, and will drive the car off the lot if they give me the price I want, does a pre-approved loan count as cash-in-hand? I guess my main confusion is that I don't understand the steps, and in what order I need to take them in order to buy a car. I've done alot of research, but I can't seem to find any good information on the steps and what order I need to take them in. If I find a car I want, will the dealer hold it for me until I get these things worked out and do my homework on it? Will they let me take the car to a mechanic to get checked out before I buy it? Do I have to have a deal worked out before I do that? If I really want the car, but not the dealer financing, how do I go about getting the car? Let's say I have a pre-approved loan for $7000, but I find a car I want instead for $10k...then what do I need to do?? Confusion!!!

Can someone baby-step this with me? Any help greatly appreciated!

posted by Alive N Kickin to travel & transportation (11 comments total)

Just go to your credit union, get pre-approved for the biggest loan you are willing to pay. Ask them about the process, but they'll tell you to go make your best deal at or below that price. Depending on the place, they may then give you a blank check you can fill out for any amount up to the preapproved level, which counts as cash to the dealer, or give you other instructions as to how the dealer will get paid. Conversely, the dealer will hold the car for you if you need to go back to the bank with their quote in hand.

But, read this. Paying cash may not get you the best price. In my experience, you'll find better financing deals via the dealer, and because the dealer makes some money on the financing, you'll be able to negotiate a better overall deal by financing through the dealer.
posted by beagle at 7:06 PM on February 29

Uff da, that's quite a question. I'll answer a part of it. I've owned Hondas and Mazdas, and have had no reliability issues with either. Consider one of the Honda Accord wagons (although they may have stopped producing them awhile ago, so that any you might find might be rather old) or a Mazda Protege 5 or Mazda 3 wagon. The Accord wagon will be larger, but the Mazda will be sportier and more fun to drive, as well as newer.
posted by mollweide at 7:35 PM on February 29

If you haven't purchased a car before, go to a No Haggle dealership. Search around - there are both new and used car dealers in your area that do this.

If you go to a regular dealer, they will rob you blind if you're not 100% positive of what's going on. Seriously. Everything you've heard about User Car Salesmen is true.
posted by unixrat at 8:08 PM on February 29

One datapoint: We're currently beginning the car-shopping whirlwind as well, to replace my 1987 Honda Accord--still going, and going (just not indefinitely). I took my driver's exam in this car, and am now approaching my 36th birthday. The car's easily paid for itself 3x over.
posted by Emperor SnooKloze at 8:17 PM on February 29

Honda Civics are excellent cars, but a lot of people like to mod them into poor man's race cars so that tends to drive up the price on used Civics.

2004 and later models Hyundais are as reliable as Hondas or Toyotas but are a lot less expensive.
posted by Jacqueline at 8:25 PM on February 29

anybody have any experience with CarMax? I like their approach, but dunno if they're any better.
posted by panamax at 8:35 PM on February 29

My sister just had a great experience at CarMax.
posted by kimdog at 5:05 AM on March 1

Anyone got any UK-specific advice? Since two days ago (my engine seized on the motorway), I'm in a similar situation. Previously I've always bought privately through people I know and haven't ever shopped through an English dealer. Am I expected to haggle? What sort of consumer protection do I have? Is an independent mechanical inspection necessary / expected? Any pointers appreciated.
posted by outlier at 5:41 AM on March 1

Remember that there are many, many cars out there that will suit your needs. Don't fall in love with a particular model, and especially don't get your heart set on a particular vehicle at a particular dealership; all of your negotiating power depends on your willingness to walk away from any particular deal. Don't find "the right car," find a few of them, at different dealers.

Don't focus so much on the mysterious rituals that you associate with car buying. IMO, the process is designed to be somewhat arcane and intimidating, because this makes you more likely to let the dealer dictate the terms of the deal. In the end, it boils down to the fact that you have money, which the dealer wants, and the dealer has a car, which you want. Remember that the price is not the number written on the windshield, it's the total amount you have to fork over including interest and loan fees. Remember that the product is not just a car, it's a car, a guarantee, a dealer's reputation, a loan that does or doesn't penalize you for early repayment. Don't allow yourself to be rushed along without understanding what you're trading for what.
posted by jon1270 at 6:45 AM on March 1 [2 favorites]

Check out Consumer Reports recommendations on used car reliability.

You can buy a year's subscription to their website for about $20, or check out their printed guides if you prefer the dead tree edition. They also have a list of reliable used cars in certain price ranges that's likely to be helpful.
posted by mosch at 8:46 AM on March 1

Every time there's a thread like this, I chime in in support of CarMax. I hate hate hate the whole dirty business of car buying and selling, and CarMax makes the whole process smooth and painless. I'm aware that I may not be getting the best prices for the cars I've sold and bought there, but the painlessness of the process is more than adequate compensation.

I do my research and check out all the buying guides, then hit the CarMax. Every selling price and every buying price has been within the ranges laid out by Kelly and Consumer Reports--low when CarMax buys a car, high when they sell it, but always within the range. When I was poor and shopping for basic transportation, their ValueMax line was perfect--every car they had, with no exceptions, was on the Consumer Reports best used-car list. Again, you won't get the very best deal one could possibly get, but I likely wouldn't have gotten that deal, anyway--I'm a terrible negotiator, and I hate the process. But I'm a CarMax believer.

Honestly, no ties to the business, no profit to me--I just love the place!
posted by MrMoonPie at 7:19 AM on March 3