Ask Yourself: What am I going to need before going to an auto dealer auction?
Popular automotive and consumer magazines put out annual chronicles filled with reviews of the year's new cars. I recommend picking up the one or two you're most comfortable with, and your selections should have plenty of pictures. If you think a used car is a possibility, spend a couple of dollars on the best local used car ad paper that has photos with its listings.
What else? Here's a short camping list of what you'll need before attending auto dealer auctions:
Time: As you move forward in the car-buying process, you'll need some spare time to research different automobiles, and then to shop and test-drive.
Ready cash: If you've got plenty of time before you need to make a buying decision, take advantage of it. Keep your credit in good shape and accumulate as much available cash as you can. Dealers advertise cars for sale with 0% down, but the voice of conservatism says you should generally plan to at least be prepared to make a down payment of 20%. (When buying a used car at an auto dealer auction and going through a bank, you may be required to put 10% or more down in order to get the loan at all).
A trusted mechanic: To look over a used car you might buy.
Clear title on your trade-in vehicle: A necessity for selling it (so that a new owner can properly reregister the car with your state's motor vehicle department).
Here are the facts you should know:
Thoroughly understand the difference between your underlying motivations for getting a car, your needs, expectations, and wants.
Decide how much of your income to devote to transportation. One estimated average is 7% and some consumer credit counselors suggest a 15% cap, but talk to other people in your income bracket and with your lifestyle, many people pay a lot more than the average and manage well.
Don't forget to figure in financing, tax, and insurance, which can be the biggest expenses in car ownership beyond sticker price.
If the car you want is more than you can afford, consider buying used or leasing.
Discuss car-buying plans with your spouse and ask for input, particularly on cost issues.
David Foley is an author for the website Car Deals Search, a website dedicated to helping educate the general public on smart car buying decisions. To learn more about Auto Dealer Auctions visit Car Deals Search at:
http://www.cardealssearch.com/auto-dealer-auctions.html
