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11. Should I buy new? A new car gives you the advantage and the satisfaction of being the first owner, and you can be sure that you're not buying someone else's problems. It's much easier to get what you want when you buy a new car. You can also take advantage of lemon laws that will allow you to settle the dispute by getting a replacement vehicle of equal value. The disadvantage is that a new car has a high depreciation almost immediately. There are also higher initial costs, higher insurance costs and higher monthly payments. 12. Should I buy a demo? A demo is a new vehicle that has been put into demo service and driven by a dealer or a dealer employee. Once a demo reaches a certain mileage, it is taken out of demo service and put up for sale. You can expect great savings, especially at the end of the year closeout sales. Dealers really want to get rid of any leftover inventory in order to make room for new models. Also, any mechanical problems with a demo will have been taken care of by the service department. On the other hand, there could be some damage (inside and outside). Also, the warranty kicks in the day the vehicle is pulled from being a demo. This means that you will lose the days when the car has been sitting around on the lot waiting to be sold. 13. Should I buy used? Used means pre-owned, pre-rented, or pre-leased. A used car will cost less than a new one of the same make and model and the insurance will also be cheaper. You can always find a good deal on used cars, because the market is huge. On the other hand, you could be buying someone else's problems. Also, lenders do not like to lend on used vehicles, so they will be tougher on you. 14. How do I negotiate? Negotiating is simply coming to terms or coming to an agreement, after challenging a dealer on price. A successful negotiation will benefit all parties. Know how much you want to spend, work out a plan, and stick to it. Don't budge no matter what the dealer tells you. Here are simple strategies: Don't be a bully with the dealer, and don't be a pushover. Just be polite, yet very firm. Don't fall in love with a car. Always stick to your financial limits. Be ready to walk away from a deal that you don't like. 15. What exactly is the "lemon law?" This is the law that protects buyers in which they may take legal steps toward arbitration if they have bought a vehicle that turns out to be a lemon. The law may vary from state to state. |
