March 26th, 2015-- “Buy
Smarter, Not Harder”
more time to decide on a car.
There is something to be said for
persistence. And I don’t think there is
anyone more persistent than a car
salesman. (Persistent is a nice way of
saying pushy.) I don’t like conflict.
Sometimes it’s really hard for me to say
no to people, and I imagine I’m not the
only one. Buying a car is a huge deal.
You’re spending thousands of dollars and
have to deal with it for years, so you
should take your time. I spend an hour
deciding on what to wear; I need a lot
To the left, you will see my baby. Her name is Stark. I don’t have any
children, but I take care of my car like she is one. She is the first brand
new car I ever bought, and therefore she symbolizes more than just a
machine. Buying a new car (or new-to-you) can be a great time, but it’s
important to do it the RIGHT way.
There are a few key ways to avoid buyer’s remorse and not have a huge
regret that you have to see (and drive) every day.
Be Patient. Cars are always going to be for sale. You don’t have to
get one RIGHT NOW. Waiting until the 2016 cars come out can save
you on a 2015, or waiting until there are special sales can save you
a lot of dough.
2. Have that down payment ready. Putting money down can
significantly decrease the amount that you will pay in finance
charges. A general rule is to put down 20% of the purchase price,
but you should aim for putting as much as you can afford down.
Especially when buying a new car. New cars depreciate about 22%
in the first year that you own them.
3. Shop around. I don’t suggest going to every dealership in town,
but you shouldn’t just pick the first car that you test drive. Go to
the dealer’s website and look at their inventory, you can decide
really quickly if they have a car that fits your needs. If they do,
then go to the dealership and ask to test drive that car. Being
informed can help keep YOU in control of the situation. The last
1.
4.
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thing you need is a salesman convincing you that you need a
$30,000 car on a $20,000 budget.
Don’t shop based on payments. Sure, it’s great to know how
much your payment will be. But when you are car shopping, you
need to go off of the total purchase price. Dealers could try to sell
you a car for “only $350 a month”, but for how many months will
you have to make those payments?
If you weren’t planning on buying a car today, don’t buy a
car today. My roommate may kill me for telling this story, BUT I
have to use her as an example again. Last week, she went to the
car dealership to have her car looked at (she thought it needed an
alignment). Her car was three years old and still under warranty.
Somehow, between pulling up to the service section and leaving,
she ended up trading in her car and buying the same make and
model three years newer, with less features and a higher price tag.
Only buy a car if that is your intention in the first place, it will save
you a lot of regret later. In her defense, my roommate’s new car is
a different color…
Get pre-approved. Go to your financial institution and get preapproved before you head off to the dealerships. Tell them how
much you are willing to spend and what interest rate has already
been offered to you. They may try to convince you to run a credit
check and match rates. If you let them pull your credit as well, it
could allow you to haggle with interest rates. When I bought my
car, I was pre-approved through ECU and still let the dealer run my
credit just to check for the best deal (ECU won by the way!) Just
don’t do this at every car dealership you walk into, since a lot of
hard credit inquiries can drop your score.
Add-ons. Never buy a new car without GAP protection. If you were
to total your new car within two years of buying it, you could be
upside down and still owe a lot of money to your lender. GAP isn’t
that expensive, and it is SO worth it. At the dealership, they will
also try to sell you extended warranties. You can shop around for
these, too, if you think they are important to you. Also, telling them
NO may be a great way to get them to lower the price. When
buying my car, they told me I should buy a $1500 extended
warranty. I told them no, and all of a sudden they “found” a
discount and the price for the warranty dropped to $500.
Value your trade-in. You may not have as much negotiating
power with the car you are buying as you will with the car that you
are trading in. Use Kelley Blue Book or NADA to look up the fair
purchase price of your vehicle. They might low-ball the trade in at
first. Threaten to walk away if their offer isn’t realistic. There will be
other cars if they call your bluff.
Getting a new car can be fun, but it’s also a big commitment. Make sure
you are making a good decision. It is OK to take your time to decide.
Don’t let yourself get swept up in the excitement of a new car or the
pressure from salespeople. Happy car buying!
Until next time…
March 4th, 2015 -- "A Little Spring Cleaning Never
Hurt Anyone"
Well despite the fact that I still feel like it’s January (of 2014), time has
done what the Wright Brothers did back in 1903; it’s flown. Yes friends, it
is now March and I still can’t believe it. With Spring Break and (hopefully)
some warm weekends coming up, it’s a great time to start some Spring
cleaning. If you despise cleaning half as much as I do then I’m sure this
doesn’t sound like much of a thrill, but my hatred of clutter usually
outweighs my distaste for cleaning so it’s a great
time to be had by all.
Even the neat-freaks out there can (probably)
find something in need of a good cleaning. It
makes me think of the episode of Friends where
Chandler opens Monica’s hall closet and finds out
that she has a bunch of stuff crammed in it,
even though she is well known for her love of
keeping things neat and organized. I try (and fail
often) to keep everything pretty clean, but I still know there’s a garage
that can be swept out and a closet that needs a serious makeover. Spring
is a great time to get all of this done.
This not only will it make your house look nicer, but there are some
pretty great benefits to keeping your nose (or house) clean:
Being organized. Being able to find things can save you SOOO much
time. Have you ever lost your keys in the morning or couldn’t find
something that you KNOW you put in a “safe place” so you could easily
find it? Taking a little time now to get organized can save a lot of time
when you’re in a rush and are trying to avoid any catastrophes.
There is serenity in getting rid of junk. I’m
a firm believer in the whole “if you don’t or
can’t use it, get rid of it” motto. I find extreme
pleasure in throwing things away (or donating
them), which is why my Spring cleaning
usually involves a bunch of trash bags. I’m a
self-proclaimed minimalist, and I don’t really
see the need in storing a whole bunch of stuff.
Every time I watch the show Hoarders I feel
like I need to throw things away and proceed to clean. I can understand
keeping things that have sentimental or actual monetary value, but that
$10 end table that you bought at a garage sale three years ago and still
haven’t used doesn’t qualify. You might as well give it the boot (or sell it
at another garage sale.) You could make a couple of extra bucks for that
summer vacation!
Avoiding a hostile work environment. You would be surprised how
much more work you can get done when the space around you is spick
and span. There’s something about an anti-clutter environment that
really drives the work motivation. Time is money! Being organized means
not wasting precious time searching for things. This goes for you work
station too. Keeping your desk tidy can keep your to-do list shorter and
your boss happier. Try getting a routine in place so that you can make
sure you keep up with it.
Pick a day and time for your Spring cleaning extravaganza. Get the whole
family involved and see how much you can get done. Well I’m glad that
Spring is almost here and cleaning season is upon us. Use this spring
cleaning to score some extra dough and help relax your budget (and
yourself) a little more. Now if the weather could just get the memo, we’d
be set! Happy Spring cleaning everyone!
Until next time…