Your portfolio may not be looking exactly the way you would like right now, but look at the bright side... you may be able to find a better deal on your next car.
New or used... penny-pinching expert Clark Howard tells you how you can save thousands...
they shine like new, they sparkle like new, but they don't cost the same as new.
consumer guru clark howard says, now is the time to buy used.
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Find Out the Value of Your Car
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CLARK HOWARD / CONSUMER GURU - "Because of leasing, this year there are over four million cars coming back to dealers from two and three year leases. Those cars come back with almost all their useful life remaining, usually with twenty four, forty thousand miles on the odometer."
But they cost less. a two-year old car, on average, costs 15 to 20 percent less than it did when it was new. as long as you get it checked out by a mechanic before you buy it, you shouldn't worry that your used car will fall apart.
CLARK HOWARD - "Cars today easily, even minimally maintained will run a hundred-fifty thousand miles or more. So you get most of the life of a car with half the value already taken out of it, you're buying a car on sale."
How do you get the best price? Be prepared before you walk into a dealership.
Research your choice. Find out what it's selling for at dealerships across the area. Arrange your financing with a bank or a credit union. It's usually cheaper than dealer financing.
Only then, go dealer to dealer. And before you sign on the dotted line, question what you're paying for.
LARRY KAPLAN / BROWARD CONSUMER SERVICES - "Well, they usually put what they call 'dealer's fee' or 'dealer's charge,' and they'll be printed right on the buyer's order or on the contract purchase.
Most of them are negotiable, although they'll tell you they're not. But they are."
"Yeah, occasionally people do get burned buying a used car, but if you follow these steps, the chances you're going to get taken drop to near none."
if you insist on new, here are some tips:
These days, light trucks often outsell cars so dealers might be more inclined to give you a good deal on a sedan instead of an s-u-v. and, because may 2002 was a soft month for car sales, manufacturers are giving dealers more incentives, and consumers are getting more rebates and 0% financing.
So what does Clark drive?
"This is a hypocritical purchase cause I normally only buy used cars but this was one you could only get new. This is the Civic hybrid."
It might have cost more, but it does save on gas, averaging 47-miles a gallon.
"Drives like any other Civic, just is much much much cheaper to run. And, there's a two thousand dollar federal tax deduction for buying one of these babies."
But Clark still believes in used.
"My wife's newest car is one that someone had leased. They had paid a fortune for it through the lease. She was able to buy it at the end of their lease for less than half of what the original price of the vehicle was, and she has a car that's virtually new but is a fraction of what she would have paid otherwise."
August 6, 2002
