Final Selection - Narrowing Your Choices

Narrowing Your Choice - By this point you should have driven all the vehicles that you were interested in.  If you've narrowed down your choices to two, I suggest you go back and drive them both on the same day, as close together timewise as possible.  Look both of them over carefully.  How well does each one fulfill your lifestyle?  Which one is more practical, and perhaps even more importantly, which one is more affordable?  Don't forget to compare their safety features and gas mileage as well.  If you're looking at SUVs or pickups, will they each fit in your garage?  Some of the new quad-cab pickups and long-wheelbase SUVs are over 18 feet in length.  After careful consideration, one vehicle will emerge victorious, and you'll be able to start your final pricing research.  

Final Pricing for a New Vehicle - It's fairly easy to find dealer invoice prices on new vehicles on the internet; I've listed some reliable sites on Buying on the Internet.  Even if you buy directly from a dealership, it doesn't hurt to get a couple of free no-obligation quotes from internet buying services.  You might want to get quotes on insurance as well (see Shopping for Insurance), to help you anticipate your auto expenses down the road. 

Final Pricing for a Used Vehicle - The fair market value of a vehicle is somewhere between its retail selling price and its trade-in (wholesale) value.  The IRS states, "Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither being required to buy or sell, and both having reasonable knowledge of all relevant facts."   To find the going rate for a used vehicle in your area, you'll need to do some research.  The first places to look would be at the following websites.

Used Motor Vehicle Prices  and Residual Values

Automotive Lease Guide at http://www.alg.com

Auto Trader Used Car Information at http://www.autoconnect.com

Edmund's Buying Guides & Pricing at http://www.edmunds.com

Intellichoice Pricing and Residual Information at http://www.intellichoice.com

Kelley Blue Book New & Used Car Prices at http://www.kbb.com

NADA Price Guides at http://www.nadaguides.com

Pace Price Guides at http://www.carprice.com

In addition, all six companies publish price guides available at newsstands and book stores.  I prefer the Edmund's Guides as I feel their prices are more accurate.  You'll also need to look at newspaper classifieds, and automotive tabloids like the Swap Sheet or Auto Trader.  These publications will give you a good idea of the fair market value of automobiles available in your area.  Independent used-car dealers advertise heavily in these publications, so you'll get retail prices as well.  And remember that vehicles with high mileage need to be heavily discounted, while low-mileage vehicles in pristine condition may be worth more than the retail prices quoted by price guides.  With factory or manufacturer's certification, a car will go for top dollar.   

Used Vehicle Final Selection - Once you know the fair market value of the car you're considering, you need to do one more thing.  You'll need to take the winner(s) of your used vehicle search to your mechanic for a final professional inspection and repair estimate (detailed in Mechanic's Inspection).  You've narrowed down your choices to one specific make and model, after your Test Drive.  Then you've located and looked over all the available candidates, and arrived at one or two contenders in the final selection process.  At this point, you are a serious buyer, if your mechanic approves your selection.  You may need to put down a deposit on your chosen vehicle.  That's OK; just write on the check, "Completely refundable deposit contingent on mechanic's approval."  Tell the seller where you're taking the vehicle, and offer to have them come along.  If the seller insists on making private transportation arrangements (for unregistered vehicles), offer to pay only half the bill, as your mechanic can also arrange for transportation for a lot less.  If the vehicle is currently registered, make an appointment for the seller at your garage, explaining to your mechanic what is going on.  If, for any reason, the seller won't allow you to do this, tell him you're sorry you couldn't do business and walk away.  People who do this usually have something to hide.  If something is wrong with the car, they know your mechanic will catch it.  So be wary of anyone trying to talk you out of this step.