Better Techniques For Buying A New SUV
Written by Deborah Murphy - Sunday, 10 August 2008
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 You see a shiny, new SUV in the showroom window. You run into the dealership, embrace the vehicle and yell “I want this car.”
That’s one way to buy a new SUV.
A better way is to take your time and do your homework. You may not get the immediate gratification of the first scenario, but you’ll end up paying the right price for a car that fits your real needs. Your first step is obvious unless you just won the lottery.
How much car can I afford?
You should plan on a down payment of 6- to 20-percent of the total cost of the vehicle. If an SUV comes in around $30,000 with taxes and dealer prep included, that means you need to come up with $1,800 to $6,000. The source could be your savings account and/or the sale of your existing car.
In an ideal situation—which is what a loan officer wants to see-- your total debt load (mortgage, credit cards and other loans) will be 36-percent of your pretax income. If you’ve just burst into tears, or given up on ever owning another car again, this percentage represents the ideal in a reasonable marketplace. Local lenders in communities with high housing costs will be flexible. You still need to go through this exercise in order to have a realistic idea of what you can afford.
Get Pre-approved for a Loan
New car dealerships offer financing, but if you walk into the showroom with your own financial arrangements, you’ll be a step ahead of the game. If the dealer can provide better rates, you can always go with the best deal. When you’re spreading out all your financial information at your own bank or credit union, they can help you refine the price range you need to be looking at, based on the total cost of buying and registering a new car and loan interest rates.
Determine Your Vehicle Needs
Do you really need an SUV or will a crossover meet your needs? SUVs are trucks with extra passenger space. CUVs (crossover utility vehicles) are cars with extra cargo space. The difference is in ride quality, capability, gas mileage and cost.
What level of comfort and convenience features will you require in the long haul?
Assess just how much cargo and how many passengers you’d like to be able to haul. SUVs come in full-size, compact and sub-compact; each size has its own strengths and weaknesses.
What kind of driving will you be doing in the vehicle? Is it a family road trip car, a daily commuter, a weekend errand runner, a child hauler, or all of the above? The answer to this question could be the key to an SUV or CUV.
Do you live in a snow-free zone or the tundra? Is your area’s annual rainfall in the triple digits or just barely two digits? This will determine if you need AWD, 2WD or 4WD. While 4WD seems an exciting prospect, unless you’re considering rock crawling your SUV, AWD is your best bet.
Narrow Your Choices
Here’s where the Internet and a pile of car magazines can help. Take that list of vehicular requirements and start researching what makes and models meet your needs and your budget. Read car reviews, both professional reviews in car magazines and auto websites and user reviews. Users tend to love their cars but their reviews do provide insight into recurring problems. Check reliability reports and safety crash test results.
Optional Research
If you’re really into this research thing, you might as well check out on-line quote and pricing sites. Your goal is to figure out what the dealer’s cost on the vehicle of your choice really is.
Be aware of manufacturer’s rebates and specials. In late-summer, early fall, some dealers are trying to empty their showrooms for the new model year. If you intend to keep your new SUV for a while, this could be the best time to buy.
If you live in a large metropolitan area, check out dealers within a reasonable driving distance for the best prices.
Finally, the Dealership
Start your tour of dealers carrying your specific model selections with the mindset that you’re just looking. You’ve spent this much time on the project, no reason to let it all fall apart once you’re at the dealership. Though it may be exhausting, try to hit as many dealers and take as many test drives as you can handle in one day for more accurate comparisons.
Shoot for at least a 30-minute test drive over a variety of road conditions and traffic.
Go through a mental checklist that includes accelerating onto a freeway, handling and steering, noise, visibility, braking and parking. Take your whole family, if possible.
When you’re ready to make an offer, the salesman will start with the sticker price and work down. You want to start with what you know the dealer paid for the vehicle and work up. You can always walk out and find another dealer and the salesman knows that.
Don’t accept any “extras” like rust proofing, VIN etching, etc. The car is ready to drive off the showroom without any additional protective coatings that primarily represent more dealer profit.
Congratulations, you just bought yourself a new SUV (or CUV)!
Congratulations!!
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