The four steps to choosing a vehicle are (1) know your goals and budget, (2) evaluate vehicle ratings and safety, (3) examine automobile reports, and (4) evaluate insurance costs.
Five additional issues that you should consider when choosing a vehicle are (1) new and used vehicle prices, (2) holdbacks, (3) warranties, (4) service contracts, and (5) lemon laws.
The MSRP is the amount the dealership hopes to get for the vehicle. The dealer’s invoice is the amount the dealership actually paid the manufacturer for the vehicle.
A holdback is a rebate that the manufacturer gives the dealership as compensation for holding the vehicle on the dealer’s lot. It is important to know about holdbacks so that you know that a car dealer can still make money even if it sells a vehicle below invoice.
The three things you should do once you have found a used vehicle that you like are (1) look at a printout of the vehicle’s history, (2) have the vehicle checked by a good mechanic, and (3) look at the vehicle’s service records.
