Tips on Buying Cars: Buying Car for the 1st time questions, getting jipped, car salesmen


Question
Hi there,
How are you?
I need to buy a car ASAP- i have no knowledge on cars whatsoever and Im terrified of getting jipped by sneaky car salesmen...my dad is advising the following:
1. buy new b/c people only return cars if theres something wrong with them
2. put 5,000 down and
3. buy honda accord 2007
Is this good info?
What in your opinion is the lowest priced high gas mileage safe car out there right now?
Are there sites that u can put in specific criteria like price range, safety which is my 1st priority, great gas mileage as a 2nd priority (I commute a lot daily), etc and they do a database search and come up with a selection for you?
Lastly, if I fix my credit today (i have an unpaid charge from years ago due to a bill never arriving) do you have any clue when that might clear so that I dont have to hear the finance guy say, your credit is bad, 20% is the best interest rate we can give you?
Thanks very much for your help :)

Answer
Hi Aly,

I hate to go against your father's words.. but I generally advise people to buy used. Heres why: New cars depreciate ALOT faster than a used car will.. this means your 22,000 dollar new accord will be worth about 18,000 the second you drive it home... (maybe an exaggeration, but its very close to what happens). People sell and buy cars all the time - not just when they break. I have sold many cars simply because my needs changed. I try to convince people to save their money and buy a reliable car they can easily afford. All you need is a reliable way to travel for 5+ years, and most used cars will provide that without giving you a 400 dollar a month payment.

If you have 5000 to put down, I say don't go 20+ grand in debt... buy a 5000-$12,000 lightly used car - drive it until the wheels fall off - and be happy that you won't end up owing several thousands more than your car is worth (this is how people end up getting WAY into debt.. because if you cant sell your car for what you owe - and you buy a new car.. the debt just piles up). I understand your need for a safe car, but in reality safety ratings are quite blurred... 5 star this, 5 star that... the truth is that most cars are just as safe as the next... big SUVs do better in crashes but roll-over easier, small cars will do worse in crashes but are less likely to roll-over... volvo is well known for safety and their s40/s60 models are pretty nice.

My personal recommendation is for a low mileage Civic/Accord OR Corolla/Camry - You should be ably to find a fairly new- under 50k miles - car for around 10,000 dollars. If you only finance 5000 of that... you will end up owing 5k on a car worth 10k... this way you never end up owing more than it is worth.

Any of the Hondas/Toyotas mentioned are well known for being reliable and should serve you well for years to come - volvo models may not be AS reliable, but the cars and safety may appeal to you more (although I doubt the safety ratings are much different than the honda/toyotas) - as for not getting screwed... Just have a good mechanic (ask around town) - look over the car for you.. any dealer or seller should let you have this done (should cost 30-100 dollars.. well worth it - trust me) - if they refuse - you don't need the car... they probably have something to hide...

If you still want to buy new... atleast read this guide:

Http://thestealership.com/newcarguide1.html

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If you decide to buy used.. give this a read:
Http://thestealership.com/usedcarguide1.html

and my site: Thestealership.com - should have enough information to clear a lot of questions you may have.

Check those articles out - and if you have any more questions about car buying - just ask away.

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As for the credit... Pay that bill! .. no seriously... clear that up.. If you don't already.. join a credit union... they will probably offer you the lowest rates... don't go along for the dealer financing... its usually a rip-off.. (There is a whole section on financing on my website) - You might be able to get financed at a decent rate - I can't tell you myself.. but if you go sit with a loan adviser at a bank or credit union - they will be able to help you there.

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I hope this helps clear some things up for you - If you have any other questions, simply ask another on here - Thank you and good luck.