What To Expect When Buying A Car
Should I put a deposit on a car?
Never leave a deposit on any vehicle, new or used. The first time the finances come into it is when you've decided that's the vehicle you're going to buy, and you're in the negotiation process. A deposit is just not necessary in the automotive industry.
Can a deposit on a car be refunded?
The deposit and any potential refund would need to be negotiated at the time you gave the deposit. Just as any expert in this field, I can't imagine any need for a deposit in the first place. If the vehicle is so hot that the dealer is afraid that somebody else is going to buy it, well then, go buy it from another dealer. There is no vehicle which is golden.
How long should I expect to be at a car dealership when buying?
Generaly budget anywhere from four to six hours for a buying vehicle. In some cases, there are anecdotes of people even staying in the dealership all day long. However, for somebody who's pretty savvy about this buying process, I think at the most six hours is probably fair. Now personally speaking, I still thing that's much too long. It should be a process that shouldn't take more than two or three hours. To really give it a test drive though, to really get to know your salesperson or develop a rapport with the dealership and the salesperson, anywhere between four to six hours is probably fair.
What is a "trade-in"?
A “trade-in” is the value that you're going to get for the vehicle that you drove onto the lot, with the one that you're going to be trading in on the new vehicle that you're going to be purchasing. People generally trade in vehicles because they don't want to go through the process or the hassle of selling the vehicle privately. The downside of a trade in is that you'll get less for your old vehicle than you would if you sold it privately. However, there's a value to time, energy and effort and so many people are willing to take less for their “trade-in” value in order to see the vehicle walk away.
What does "fair market value" mean?
Fair market value is a reference to what the market in that particular area is carrying for that particular vehicle. Fair market value on a convertible in California or Arizona is going to be more than it is in Maine or Minnesota. The fair market value is based on the market itself and what sort of ability or value the vehicle has in that particular area. The way to identify fair market value is through research. There are several different websites which are going to assign their ideal fair market value. As an example, intellichoice.com, does a target price which is considered to be a fair price for that vehicle given the market conditions. Also, look in used vehicle classifieds to see what the vehicle carries in the market as a used vehicle, and what sort of depreciation rates there are. The other thing to do is to consider geography. A convertible in California or Arizona is obviously going to be worth more than it is in Minnesota. Fair market value is not a real tangible item. Ultimately the value of a vehicle is whatever the person who's buying the vehicle is willing to part with. That's the value of the vehicle, but you can get some rough guidelines with enough research.
What is meant by the term "Lemon Law"?
Lemon laws vary from state to state, but basically they are set up to protect consumers who have unwittingly bought a vehicle which really shouldn't be on the road. Either it doesn't pass inspection or maintenance regulations, or just requires more money than the vehicle's worth to bring it back up to a usable spec. A lemon is an old automotive term for a vehicle that is defective or does not work - something to avoid at all costs. If you feel like your vehicle is a lemon, as in you've taken it in for repeated repairs and you just can't get satisfaction, you can't get the vehicle up to a place that you have a lot of confidence in its use, then contact the department of motor vehicles. They can assist you in getting you directed towards the state agency which is there to regulate lemon laws.
