Purchasing a New Car

Did you know that once you drive off a brand new car off of the dealer lot, the car loses value? But, if you're not a wrench turner or don't know an honest mechanic, a new car might be the best choice for you.

Although you are purchasing a brand new car, I suggest doing homework. Why? You don't want to purchase a lemon or not purchase the exact car that you wanted. I suggest the following process. I understand it is work, actually a fair amount, but if you don't do the work, you are gambling at success. So, it up to you; do you want to the work ahead of time, which is cheap, or do the work after the purchase, which is expensive? You make the call. If you would like to prepare for your purchase, please use the following list to assist with the process of purchasing a new car:

• Determine how you will use the car, e.g. high mileage driving, short trips, hauling, modification, racing, ...
• I suggest buying last year’s model since the current model year is always marked up.
• Determine your budget. I suggest not using all of your money on the purchase. For example, if you have 10k in savings, I suggest purchasing a car for 8k. This will leave you with 2k for insurance and follow up expenses, e.g. new wheels, floor mats, alarm, paintjob, ground effects, ...
• Determine make/model of cars that will fulfill your needs and budget
• For each make/model determine average price and upper mileage
• For each make/model, determine reliability rate and common issues
• Find cars in your area but remember some web sites can bring in the exact car you want from another area. You can also save money by driving to a big city since car prices tend to be lower since there is more competition and more cars are sold there.
• For each car dealer, research their reputation.
• Although, the first model year of a particular car has a probability of issues, the first and last years of a model are potentially the most valuable. Of course, this defends on the kind of car you’re purchasing. Note: this suggestion probably doesn’t apply to vans.
• It is true that the color of your car does impact the probably of receiving more attention of the local police. In addition, certain colors have a higher value. I’ll let you do the research on this one.

The following list of resources is what I have used in the past to accomplish my above recommendations:

Resource	Category	Description
Car Max Kelly Blue Book Etc..	Price/ Mileage/ Availability	These resources are used to determine what the make/model is going for in your area. In addition, note the mileage these cars usually have.
Car Complaints	Reliablity	This resource allows you to determine if the make/model you're looking at is reliable. Be sure to look if complaints are relevant to you. For example, if the make/model vehicle being research is having major issues with automatic transmission but you looking to purchase a manual transmission, these set of complaints aren't relevant to you. You can also find Recalls and TSBs, for free, on this site.
Mitchell1 DIY ALLDATAdiy	Reliability	These purchased resources are used to research known Technical Service Bulletins(TSBs) and Recalls for the year/make/model you are interested in purchasing.
Yelp	Car Dealer	This resource allows you to determine the dealer's professional reputation.

Best of luck with your purchase.