Choosing a Vehicle

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Choosing a Vehicle

How to research potential vehicles

A simple Google search for a phrase like "used car sites" will bring up a plethora of Websites that list used cars being sold around the country, usually at dealerships. Sites like cars.com, usedcars.com, autobytel.com, autotraders.com, and carprices.com are common. A search on your local Craigslist will bring up used cars from both dealerships and individuals. Of course, there is still your local newspaper, which will advertise available cars and dealer specials.

There are also sites that provide more useful information than just listings. Edmunds.com and Consumer Reports are among the most popular.

Compare prices

Compare prices of cars you are interested in. The Kelley Blue Book lists both wholesale and retail prices for used cars. The wholesale price is what the dealer originally paid for it. The retail price is what the dealer is charging you for it. The Kelley Blue Book will give you a sense of what a particular make and model is worth, on average, so that you can assess what dealers are asking. You can also go to Kelley’s Website and search for cars and get information, reviews, and car value information.

The Consumer Reports Used Car Price Service, which you can find online, provides full reports on used cars.

Finding car histories

You may have heard of Carfax, a Web-based service that provides vehicle history reports on used vehicles. Many dealers now offer Carfax reports for their vehicles. You can also get them online by providing some basic information about the vehicle in question. Some services are free, and others must be purchased.

Talk to mechanics

Sometimes, auto mechanics will buy a used car that the previous owner decided was too expensive to fix, and offer it for sale on the lot. Many new car dealers will also sell used cars on their lots. And it can help to ask family or friends if they are interested in selling a vehicle. Some of them can give you a good deal (and possibly interest-free financing).

Speaking of mechanics—get the vehicle inspected by a good, trusted mechanic. It could save you a ton of money down the road.

Negotiating a fair price

For many people, negotiating for a good price on a vehicle ranks up there with getting a root canal. But learning to negotiate can save you a lot of money. First, though, get the preliminaries taken care of. Identify the car you want, arrange financing, and locate some sellers. Know what add-ons you might want. By the time you get to negotiating, the price should be the only thing not settled on. Here are some things to know about negotiating:

Haggling. Even if a vehicle is advertised with a "no haggle" price, there is still sometimes room to haggle, so it is worth considering.

Know the value of the vehicle you’re negotiating. This can work in your favor if the salesperson is asking a price that’s higher. Consult a source such as the Kelley Blue Book for values. Check more than one price guide (such as Edmunds).

The prices involved. When you negotiate, you want to pay close to the dealer’s price (the wholesale price), which is what the dealer paid for it. The dealer will want to stay close to its retail value (which is higher) for maximum profit. There will also be the "blue book value," which will not be listed and which will most likely be somewhere in the middle. In case the dealer’s cost isn’t apparent or you can’t get it from the dealer, you can find it online on sites like Autosite.com and Consumerreports.org.

How it begins. The dealer will probably ask you how much of a monthly payment you can afford to pay. Because dealers have ways of arranging financing, they know how to squeeze extra dollars out of you even while staying within your monthly payment range. This is why experienced car-buyers put off telling the dealer how much of a monthly payment they can make until after they have settled on a price.

Don’t go first. Experienced negotiators wait for the dealer to name the first price; that way, they can go lower, something they probably couldn’t do if they were the one to name the first price.

The attitude. Cultivating an air of detachment also works in your favor (in other words, be ready to walk away if need be) because a salesperson who sees that you are attached to a car has a lot of leeway with you.

Trade-ins. Knowledgeable negotiators recommend not bringing your trade-in into negotiations until you have first agreed on a price for the car.

Take control. It’s important to be the one in control of the negotiations. That might mean telling the dealer you need to go home to think about it. Dealers expect this. They will likely call you over the next few days to sweeten the deal, either with a lower price or some free add-ons.

Compare prices, too. Get quotes from several dealers and bring them with you to negotiate. Using them can make dealers compete for your business; they might match other offers.

In closing. Once you have agreed on a price, you will get the sales contract. This contract will list additional costs such as sales tax, document fees, and perhaps service fees. Know about these beforehand so that you will have a more accurate price that you will ultimately pay. You can view a sample sales contract here.

How to register your vehicle

Once you’ve finally got your vehicle, you have to register it with the Department of Motor Vehicles. This involves getting the title to it. The title is a legal form that establishes you as the legal owner of the vehicle. When the vehicle is titled in your name, you are recognized as the owner of it. If it is titled in more than one person’s name, then all of those people own it. That means that they are also held responsible for paying fees, taxes, insurance, and accident expenses. You should always think carefully before sharing a title. The process varies somewhat by state, as do the fees. If you buy a new car, the dealer and the lender will handle the paperwork on the title. The lender will keep the title until you pay off the loan, then mail it to you.

If you buy a used car from a private seller, you’ll need to have the seller sign the title over to you. You and the seller can handle the title transfer by signing the appropriate sections on the back of the title.

Next, you need to go down to the DMV to register the transfer. The paperwork you need will usually include the signed title, which will include the vehicle identification number (VIN) and odometer reading, and possibly a bill of sale showing the purchase price. Your DMV will then record the title transfer and reissue the title in your name. You will also need to get your own license plates and pay sales tax on the vehicle.

You can find a sample title at www.wisconsindot.gov/Documents/dmv/vehicles/title-plates/title-sample.pdf.

The title is an official document. For protection, make sure it is not kept in your vehicle. Keep it among your records at home.