While growing up, I was obsessed with cars and couldn’t wait to buy my own. As an adult, I now realize how expensive cars are, so I am yet to purchase my childhood dream car. Buying a car is exciting and scary, especially for the first time. This is because you will buy something that will be your mode of transport for a while but don’t want to break the bank. Getting a used car adds another complexity because you might be unlucky and get a problematic vehicle where you are always at the repair shop and often stuck on the roadside with your loved ones.
When I bought my current car, I didn’t plan on getting a new one. I took my old car for the routine 10 000 miles annual service, and to my shock, the repairs and service would be over $6,000. Since my car wasn’t worth that, I decided not to service it. Instead, I asked the agent for the trade-in value of my vehicle. I then went home to research selling and buying a car. I ended up selling my old car to an exotic car dealership since they offered me more money. After selling my car, I devised the criteria for purchasing my next vehicle. My criteria included the following:
- Vehicle condition: I preferred a used car because the value doesn’t decrease as drastically as a new car over time. A new car loses value as soon as it leaves the lot. Hence the person who purchases one eats up a lot of depreciation costs. Additionally, insurance and registration for used cars are cheaper. I only looked at Certified Pre-Owned (CPO) on used vehicles with under 30 000 miles. I preferred CPOs due to the long-term warranty they come with.
- Vehicle type: I preferred an SUV to fit friends and family comfortably, especially on our frequent Tahoe trips. I wanted people to be able to get in and out quickly. I also wanted cargo space to fit equipment.
- Front or rear-wheel drive (2WD): I chose a 2WD, given that previously I owned a 4WD, and each time something happened to one tire, the dealership refused to replace one tire. They would ask me to replace all four (4) tires. Additionally, given the Bay Area doesn’t snow, and I mainly drive in the city, I didn’t need a 4WD.
- Cost: I wanted to buy something affordable. For the cost, I looked at the out-the-door price, which included the purchase price, insurance, interest, taxes, and fees, i.e., registration, transfer of title, future service package, etc. I also calculated the cost of maintaining and running the car.
- Color: I preferred black, metallic blue, or white for the exterior. I liked red or beige seats.
- Transmission: I wanted an automatic but was open to a manual car. I learned how to drive in Zimbabwe, where it was mandatory to drive a manual car.
After finalizing my criteria, I used different sites to find nearby cars that fit my requirements. As someone who doesn’t enjoy shopping, including car shopping, I made most of my selection online. After narrowing my search to 3 dealerships, I set up appointments. I’ll say that as a black man and someone who looks younger than their age, car shopping isn’t pleasant. When I got to the first dealership, the salesperson looked at me from head to toe and immediately assumed that I wasn’t serious and that I couldn’t afford the car I wanted to see. The salesperson said he hoped I wasn’t wasting his time, so he wanted to know what I did for work and if I could afford the car. They gave me the car keys after leaving my ID as collateral and told me the direction where the vehicle was parked. The salesperson had me find the car myself in a lot with over forty (40) cars. I went to see the car, but I opted to shop elsewhere due to this poor customer experience.
At the second dealership, I had a better experience where the salesperson was kind, attentive, and helpful. He showed me several cars, and two vehicles piqued my interest. The first was an SUV; I liked the car, but the interior was different from my type. The second car was a sedan, a newer version of my older car. Once again, I tricked myself into checking out a sedan, yet I initially wanted an SUV. The sedan was reasonable, given it met most of my criteria; the only downside was that it wasn’t an SUV and was out of my budget. My experience here made me change my preference from only SUVs to considering sedans too.
Using my updated criteria, I went to the third dealership and saw a car that met all my criteria. When I got to the dealership, I got the same vibe as the first dealership, where I was being prematurely judged as not looking like a serious buyer. To get ahead of this, as soon as I introduced myself, I mentioned that I was serious about getting a car today and that if we could agree on a price, I would walk away with a vehicle. The agent’s demeanor improved, and I got more help and had all my questions answered. I took the car for a test drive to see how the car felt on the road, i.e., on flat roads, handles bumps and potholes, and ensured the car seats were comfortable. I also wanted to see how the car accelerated, braked, and changed gears. Additionally, I wanted to hear the engine sound as the car drove, check the dashboard for engine lights, ensure the gauges worked, A/C and heating worked, etc. I enjoyed the car’s performance during the drive.
When we got to the dealership, I inspected the car by looking under the hood and checked the inside to look for wear and tear on the steering wheel, seats, and pedals. I also checked if the doors locked and unlocked and if the A/C and heating worked. I inspected the outside of the car to check the paint job, tires, trunk, fuel door, fuel cap, lights, etc. Given that the inspection went well, I proceeded to ask for the maintenance records and the Vehicle History Report (VHR) to see ownership history, accident history, etc. I was happy to learn that the car had no accident records and it had one previous owner. The dealership mainly used the car for leasing. Given the car ticked all the boxes, I moved on to negotiate the price. I was able to have the dealership come down on the asking price. Going into the dealership, I had decided ahead of how much money I was willing to pay. I added service for the following three times to the purchase price. In hindsight, if they allowed me, I should have added the next five (5) or ten (10) services.
I purchased the car in April 2020 when interest rates were low. They offered me financing at a 0.99% interest rate, which I gladly accepted. I put money from my old car as a down payment; then, I financed the rest. I invested the money I would have used to purchase the vehicle. I bought stocks, given I figured I would get a better return and efficiently cover the 0.99% interest rate. I signed the papers and was told to come back and pick up the car the next day. The dealer pushed for add-ons like tire coverage, extended warranties, etc., but I politely declined, given this was a certified pre-owned car.
After buying the car, I first called insurance to add the vehicle to my insurance plan. I arrived the next day, got the car keys, and drove off. Buying a car was a good move, given this was in April, just after the pandemic had caused people to stay home. Interest rates were low, and cars were cheaper. Since then, due to the chip shortage, used vehicles have increased in price, and interest rates on loans are higher due to inflation.
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