Car Buying for the Single Woman

As a woman car sales agent, my girlfriends are always asking me for the "insider tips" on how to buy a car. Most of them tell me that they are nervous about going into a dealership alone. They are afraid that they will get ripped off and feel that not having a man with them puts them at a disadvantage. Nothing could be further from the truth if they go in armed with the few simple tips that I am going to share in this series of articles.

There are a lot of stories out there on the subject of car buying, most of it conflicting: Only buy a the end of the month or only buy at the beginning, only buy new/never buy new, only lease/never lease, always take a man with you/never take a man...and on and on. Whether or not you subscribe to any of these ideas, there are a few common sense things you can do to make your next buying experience as easy as possible.

Before going to the Dealership

A. Buy your next car before your current car is on it's last legs (or those legs have given out completely!)

Just as you've been told never go to the grocery store hungry, never go to the dealership desperate! Finding the right vehicle for the right money is nearly impossible to do with that kind of pressure. If your car died today and you've got to be to work tomorrow, you will jump on the first thing that looks good, which means it will probably be the worst thing for you.

Everyone has a different set of benchmarks they use to determine when it's time to find a new car. What are yours? Is it mileage, the cost of the last major service, the age of the car? Figure out yours and plan accordingly.

B. Do your financial homework.

What's on your credit report? Don't know? Finding out is easier than you think. All three major reporting agencies can be contacted by phone or online and you can have your report in your hand in as little as 15 minutes. Everyone can get one free report per year. You may also get a free report if you have been turned down for credit within the past 60 days. Take care of any outstanding negative entries and check for accuracy. The credit bureaus don't concern themselves with the accuracy of the information; they just enter what's sent to them. The stronger your credit, the stronger your negotiating position will be. A good credit rating says a woman is smart about her money and any sales agent will be wary of trying to pull any games on her.

How much do you have in savings for this purchase? Have you even saved up for it? Unless your credit is very good, you will need more than the $500-$1000 many dealerships quote as down payment. All of those special financing deals you see on television are usually only for those who don't need them i.e. people with great credit who can buy with cash. If this does not describe you, you may need 10% or more down depending on the quality of your credit. BTW...Your monthly payment drops by about $20.00 for every $1000.00 you put down.

How much car can you really afford? There is more to this than the monthly car payment. You need to figure in insurance, gas, oil changes, and even the cost of replacing tires. You can figure these costs based on what you are spending for your current car. If you don't currently have a car, ask your friends about these expenses for their cars.

Find a car payment calculator online, figure the payment for the amount of car you are thinking about buying and then add the additional monthly expenses to that number. Write that down. On the other side of that paper, write down all your monthly expenses not related to the car and total those. Is what's left enough for you to live on after you add in the car expenses? If not, look for a less expensive car!

What are the current interest rates for car loans? Check with your bank and several others. Acquiring your own financing could save you thousands of dollars over the length of your loan. Bankrate.com is a great place to start.

C. Research your car needs (not wants!).

How many people are in your family and do they have any special needs (i.e. wheelchair accessibility, car seats, sports equipment)?

Do you drive long distances or is everything relatively close by?

Is your region subject to extreme weather conditions like heavy snowfall that would impact your ability to get around (or hot weather, making AC an absolute necessity)?

Can you drive a manual transmission?

Will you be using this for work as well as personal tasks?

After listing your needs rank in order of importance your vehicle wants such as CD players, power accessories, foreign or domestic brands, new or used. Knowing what you can and cannot live without will make your next step much simpler...

D. Research vehicle makes and models.

There are a number of websites such as edmunds.com where you can get vehicle rankings, re-sale values, equipment packages etc. Shop online and in bookstores first. Knowledge is power! If it is clear to the sales agent that you have done your homework then you have reduced the chances that someone will be able to pull a fast one on you.

E. Research dealerships. The best way is to ask your friends and co-workers where they bought their cars.

Did they have a good experience?

Are they happy with the deal they got?

Has the dealership honored any service commitments (free oil changes or inspections, extra accessories, free towing)?

If they purchased the dealerships extended warranty, does it allow them to take the car anywhere for service or must it always go to the dealer's shop?

What is the name of their sales agent and is he/she still employed at that dealership? This is important because sales agents will often work a little harder for referred customers and often give finders fees to the client providing the referral. Also, more long term sales agents equal a stable dealership, one with a good reputation that they want to protect. Dishonest agents tend not to stay in a place like that for very long.

Now that you've done some homework, it is time for your first trip to the dealerships. Yes, I said dealerships. You cannot go to just one and be done. My next article will cover what to do when you are there. Until then, do your homework and have fun!