Where to Find Information

Step Two: Do Your Research & Pick Your Car

Resources

If you've completed step one, you're now ready to find a car, or a selection of cars, that meet your criteria. This is actually a fairly straightforward process and is simply a matter of finding the right resources.

The goal of this process is to find a match between the criteria you've deemed important and the specific model of car you'd like to buy ... all within your budget. You should be able to emerge from this step with between one and three "finalists" to consider as you head to the dealers.

Following are some valuable resources and how you might find them useful:

Consumer Reports dedicates one issue annually to new cars. It also offers an enhanced reprint of that issue under the title "New Car Yearbook." It includes details about price, performance, safety, reliability, etc., for more than one hundred specific models, together with color photographs. Use this as an accessible way to compare features and price.

Edmund's, which I highly recommend, is incredibly comprehensive. Available electronically, and on newsstands, it offers a full description of each model, complete with listings of available options packages and dealer invoice prices. A good guide, not only for selecting a car, but also for figuring out dealer markups and what to pay.

Cyberspace Automotive Performance is an online service which can be really helpful in doing car research. One of their most useful services is their list of dealer incentives. It helps you find out what the dealer is really paying, so you can get the best price possible. They also have many other links to car related resources.

Automotive News publishes a monthly newsletter that provides useful information about the quality and reliability of different vehicles.

JD Powers publishes a weekly periodical that can give you more of an insider's look at the car market, including details about discounts that car dealers may be getting from manufacturers (which can affect your price as well).

Your Local Newspaper is a fantastic place to get a feel for the local car market, especially for used cars. Scanning the classifieds will give you a good feel for the availability and price on particular used models. Even though you won't wind up paying the new car prices listed in newspaper ads (if you negotiate), it's good to know how the dealers are thinking (especially if you know the real invoice prices).

A Friend. Don't laugh. You shouldn't use word-of-mouth as the only criterion for a car purchase, but if all of your friends are raving about their new Yugo, it might be worth a look. Likewise, if a friend has been complaining about lack of headroom in her Honda, that's something you might want to consider too. Of course, you should never let a friend's opinion serve as a substitute for your own.

The Test Drive:

How a car drives is one of the few things you can't determine before you go to the dealer. The test drive is a crucial part of your decision and may prove to be the deciding factor in choosing a model.

If the dealer comes with you on the drive, do not feel you need to compliment the car. If you feel the need to chat, plainly state what you do and don't like about the drive. The test drive is intended to inform you, not to flatter the dealer.

Here are some things to try when you're test driving the car.

How does it handle bumps?
How are the accleration and the brakes?
How comfortable is the car's interior?
How ergonomic are the controls and the dashboard?
How does it handle corners?
How noisy is the car?

Consider the evidence you've gathered from a test drive the same way you would consider any other evidence. Do not feel that the dealer has done you a favor by letting you test drive the car. And do not feel that you are then obliged to discuss the purchase with the dealer. If you've tried the car, feel free to thank the dealer and walk away, taking more time to consider your options.

Choosing Your Options:

Your approach to choosing options can significantly affect both the car you end up buying, and the price you end up paying.

Sometimes options are bundled together in "options packages." And sometimes, different models from one manufacturer differ only in the options packages they offer. Learning about your option choices is a crucial part of your research and deserves some careful consideration.

Here are some things to consider when thinking about options.

Remember how, earlier, we drew a distinction between whether you want a car or need a car? You should apply the same test to whether you want or need various options. The more you add, the higher the price of the car. The more "luxury" features you add to the car, the higher the price spread the dealer can make on the invoice price.
When considering an options package, realize that, in order to get options you want, you may have to accept (and pay for - indirectly - as part of the package price) options you may not want.
Consider getting some options like the stereo and alarm system installed at a specialty shop, not at the dealer. A specialty shop may offer you a greater variety of styles and prices, and is more likely to get you the kind of stereo or alarm system you really want.

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