A few weeks ago I talked about the process of my partner buying a new car. Everything went great and then it was time to go pick up the car and bid adieu to the old Honda Civic. I must say there’s nothing like detailing an old car and then trading it in to make you almost feel nostalgic about it even though we never really loved the car (although I LOVED driving it in Manhattan as I got in touch with my inner cabbie). Picking up a new car is not as simple as just dropping off the trade in and picking up the new set of wheels though – it’s not over until it’s over…

It has been 6 years since our last car purchase so I almost forgot about the last mile of hurdles you need to walk when it comes to major purchases. The dreaded “extras” conversation:

  • Do you want the extended warranty?
  • Do you want the wheel and tire warranty?
  • Do you want the Xzilon coating?
  • Do you want this or that added to your loan?

Sigh, at this stage of the game I just wanted to say “I want the car!” However I know that the myriad of questions can lead to a HUGE difference in the overall cost of the car and some of the options we might actually want so I settled in for the long conversation.

While the discussion made my head hurt I have to say that the people at the dealer we used really rock. The salesperson had already won us over with her great personality and straightforward approach. In this visit the financing person did a great job shepherding us through the loan process and all these crazy options they offer. He was willing to answer all our questions (we grilled him for 45 minutes) and in an honest fashion.

To those of you out there buying cars for the first time or even the fifth time, don’t let overwhelm get the better of you. Do your homework and ask questions. You can easily increase the overall cost of your vehicle purchase by several thousand dollars in this “pick up the car” visit if you’re not careful.

Key points to understand

The minute you drive your new car off the lot it depreciates. Don’t fall into a funky housing financing trap with your new car. While a car will never appreciate in value, you need to make sure you pick a reasonable term for your loan, 36-63 months. Stretching things much beyond 5 years is asking for trouble because even if you keep your car for 6+ years, you’ll spend a lot of money in interest and never get that blissful feeling of being car payment free. In addition, make sure a combination of your insurance coverage plus your emergency funds can make up the difference on a new car loan in the unfortunate situation where you are in an accident that totals your new car shortly after purchase. There will definitely be a gap in funds which gap insurance can cover but may not be worth the cost to you. You may already be covered by your insurance and/or willing to take the personal financial hit should this unlikely event occur.

Warranties may or may not be right for you. I am not a big fan of buying extra warranties on everything I buy. Other than some things I buy from Best Buy regularly that die (like my cordless phones) and for which I buy their protection plan, I tend to skip the extra cash outflow. In the case of this new car, Kim decided the added warranty was worth it. With new vehicles having more and more electronics, the days of inexpensive repairs from your friendly neighborhood mechanic are gone. While we go to an independent mechanic who is awesome, even he can’t fix certain parts of the electronics and when he can it is mucho dinero. With a financing rate promo that came with choosing the extended warranty, Kim decided to go for it. By financing approximately an extra thousand dollars she has wheel, tire, and bumper to bumper coverage for 7 years, 100,000 miles. Will the added cost be worth it? Ask me in 7 years! Even if one small thing goes wrong, I believe the cost will be worth it. After all, you can’t even fix a display problem in the dash for less than $100.

Last but certainly not least is the big dealer money maker – the extra protection coating. In this case it was a product called Xzilon. For a mere $500 the dealer can put a major protective coat of wax on your car and super scotch guard the inside. While I am sure there are people who have benefited from this service, we decided to skip it for several reasons. First, there is no way we can practice what we preach with environmental friendly cleaning products in our house and then bombard the new car inside and out with massive amounts of chemicals. Second, based on all I’ve read and the people I’ve consulted (including my neighbors who work in the auto industry), it is just a major money maker for the dealer and doesn’t benefit you to the tune of the cost of doing it.

I can’t tell you how happy I was to finally bring the whole deal to completion and it wasn’t even my car! It was the first time I’ve ever walked away from a dealer feeling great about the people and the way they do business. I truly believe they want to help you as the customer and will continue to do so when it comes to service. That being said, it is always important to remember that there is more to buying a car than just the initial dollars and cents, so be ready and armed with questions and make decisions that work for YOU.

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Paula Gregorowicz is the Comfortable in Your Own Skin(tm) Coach and you can learn more at her website www.thepaulagcompany.com and blog www.coaching4lesbians.com.

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