How I Buy a Car

Not long ago a family member asked me about my car buying process ... and then immediately regretted it!  What follows is the lengthy summary I prepared for her. You may find yourself agreeing with her within the first two items ... but, if not, enjoy and best wishes on finding that perfect car and the perfect price.  

1. We choose the car we think we want and then we go look for it.
   
   

2. We start by creating a list of things we want / don’t want in our transportation. Here are some examples of things to consider (you’ll learn more about what you can search for later):

   1. How many passengers

   2. All wheel drive

   3. Safety Features

   4. Leather seats 

   5. Heated / cooled seats

   6. Back seat ventilation
      
      

3. Next we think about what kind of car we want. We just start with cars we’ve had, cars friends have, cars we’ve seen that we like. This is the point where you are beginning to choose SUV, sedan, truck, et cetera.
   
   

4. Now go do research.  This is your website:  https://www.vehiclehistory.com/#vehicle-specs  While you can come back later to look at specific vehicles, at this point you’re looking at ratings and reviews.
   For example, I entered 2020 Toyota Rav4 and got this:
   
   

Down the page you’ll find an overview of the different packages.  Pay attention to this as it will help you later when you are searching for options:

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5. Next, I set a target total spend budget and an estimated maximum mileage. 

   1. For total spend, take your cap … lets use $20,000 for simplicity … and then back out 15% for taxes, licensing, and transportation to get the vehicle.

   2. For mileage, there are a couple of ways to calculate this. I like to look at cost per mile as much as actual miles.  In the Toyota Rav4 example above, there is a 300,000 mile life expectancy.  In some alternative vehicles, that number will be as low as 150,000.  So 75,000 miles is “just getting started” on the Rav4 but half the life of the other option.  Just something to consider versus just deciding not to go over a random selection like 50,000 miles.
      
      

6. Once you have this information, it's time to go see what is out there.  There are multiple car search sites and I’ve found not all vehicles are on all sites.

   1. Cargurus.com

   2. Cars.com

   3. Autotrader.com

   4. KBB.com

   5. Carfax.com

I like cargurus.com because of the search options and how it saves cars for me. Autotrader is another favorite.

Go ahead and get an account with at least one of these sites as you will want to both save your search and save search results. They are easy to opt out of later.

7. Play with the search options but I start with Buy Used and enter the make and model I want

7. 
   
   
   

8. Next set up your detailed criteria in the search area:

• Cargurus doesn’t provide this option but some of the sites will let you select the package (from your research) of the vehicle you want … for example the XLE from the image earlier.

• Set your price range (enter a larger minimum level so you don’t get cars in your search that have issues and are selling at a low price as a result). Also make sure to deselect the button so that you don’t include cars without prices. That will waste your time.

• Set the mileage target and years you want.  

7. 1. 1. On the mileage, I’d start higher than you are thinking because it is precise in the results.  As an example, if your target was 50,000 miles you could miss out on a car with 50100 miles that you like.  Plus, this will let you see how many options exist at the various mileage amounts and how prices fluctuate by mileage.

      2. On the years, cars can be largely the same over a two or three year span so see what your research says and consider multiple years if the car is the same

• Make sure to set the distance from me to “Nationwide”  This will show you how many options you have and how the pricing varies by region.  East coast cars will likely be lower due to supply and demand.  BUT you’ll want to watch for rust in the Northeast.

• Now, fill out all the features you want.  

4. 1. Here you’ll limit your search to what package you want by the selections you make.  An example is leather seats.  Choosing that will limit you to perhaps two of the packages offered.  So use these levers to get what you want.

   2. Make sure to rule out the riff raff under vehicle history.

• This places your saved selections in your own library where you can now more easily compare prices, how long vehicles last on the lot, mileage ranges and the like.  The bottom line is that this will give you a feel for the market, proper price and purchase location options.  You access your saved content in the website navigation.

• By saving these cars and searches, you can come back to them AND you can set up to get alerts as new matches become available through my saved searches. Here’s an example … the vehicle in the middle is the one we bought which maybe we shouldn’t have as both of the others have gone down in price.

Also click on the link for the Original Window Sticker.  This does two things for you:

• You can verify that the features you want are there

• You can see the original purchase price which sets your tax rate  https://dmv.nebraska.gov/dvr/reg/registration-fees-and-taxes
  
  

• Within Carfax, you’re looking for information on maintenance, accidents, owners and location of ownership, et cetera.
  
  

• Once you like a car, also go to the dealer website to read more.  Sometimes the information will change and they aren’t accountable for what is on other sites
  
  

10. At this point, if you haven’t already, find a local option and go look at the car you think you want. This, of course, adds a local sales person to the mix. I approach this by telling them I’m looking for a very specific vehicle and am happy to buy it local if that is an option but don’t mind traveling if it isn’t. I always indicate that “as you know the websites provide pricing so I have a pretty good feel for where the price should come in.”  They will try to expand your focus to something they want to sell but come back quickly with a unique “non-negotiable.”  In our last search it was dark gray leather seats.
    
    

11. Estimate your personal travel costs and add that to your online purchase price. While you won’t know an exact cost until you’ve found a specific vehicle, you can do a little pre planning by spot checking a few vehicles in your saved list.  Look at multiple items:

    1. Flight to the nearest commercial airport

    2. Train et cetera to near the dealership

    3. Uber to the dealership

    4. Gasoline home

    5. Lodging home
       
       

12. Auto transport versus self pickup. Let me start by noting I’ve never used an auto transport service. It is likely a really good option for many. I have always wanted that last opportunity to see and test drive the vehicle. Most dealerships will give you a hold fee option. Obviously, if you walk away you have that cost plus the cost of getting back home. I’m old school on “kicking the tires.”  Plus, I really enjoy road trips.
    
    

13. Once all the prep work is done, be patient and watch for a bit. This is the only true way to know what the various options are, what the price point should be, and if you’ll need to travel to get what you want.  Obviously, the more detailed your vehicle criteria is the longer this will take but unless you go several weeks, if not a few months, you really don’t get a feel for the market.
    
    

14. Some individuals will tell you there are better times to buy. I’m going to go with “maybe.”  I tend to lean towards there are better scenarios for buying. First, I’m a fan of finding a direct trade-in at a dealership that is a mismatch.  For example, both of our Santa Fe purchases have come from dealerships that they were “not a fit” for.  One was traded into a BMW dealership and the other to a Ford dealership. The direct trade in obviously gives extra pricing flexibility but that is often simple expressed as a better price to start with.  Second, watch the price history of a vehicle. That will tell you more about the dealership’s interest in moving a vehicle than any time of the month will.
    
    

15. When you find the right vehicle, be prepared to move quickly. Good cars go fast. I have not done much price negotiating at this stage as I know what the right price is. I will ask for some considerations such as new tires if there are a lot of miles on the current ones but I never have gotten that.  Plus, they aren’t going to be the tires you want anyway.
    
    

16. Finally, don’t expect perfection. Used cars are just that, used. While that doesn’t mean you want one that has been destroyed by houghligan children for two or three years, you are going to have an item or two that isn’t perfect.
     

These are my random thoughts. I would never claim to be a car buying guru and my car hunting approach may feel like too much work to most.  I enjoy it and for the most part it has worked well through the years.

That noted, my 2000 Ford Ranger will celebrate its 10th year in the family in a couple months. I had started looking at options for a used truck and had commented to my wife during a walk through the neighborhood … “see that truck over there? That’s what I’m looking for.”  Merely a week later it was by the road with a For Sale sign in the window. Merely five hours or so later, it was purchased. The $5000 price tag which included a new transmission seemed to be a price. Plus, the .5 mile drive home was the simplest of all.