Before Buying A Car……Think!
This morning while pumping gas at a local 7 Eleven, I had a conversation with a nice older lady. Fittingly enough our discussion was about my car. She mentioned she was considering the purchase of the same car. I was happy to answer all the typical questions about gas mileage, quality of ride, stereo, etc. Being a Financial Fitness Coach I was naturally most excited to discuss some strategies to get the best value from a purchase.
As we neared the end of the conversation, the kind lady asked where I got the car. I explained to her it was purchased at a dealer about an hour’s drive from the gas station at which we met. “I was able to save about $3,000 by going with that dealer. They were just more willing to negotiate.” I said. I went on to explain that her best bet would be to purchase a car which is a few years old. “That way, someone has already taken the major hits to the value of the car.” I told her. She agreed and was appreciative of the information.
When making any kind of major purchase, it’s never more critical to utilize the “3P’s” formula. Put things in perspective (compare options of dealers and sellers), follow priorities (dealer/seller integrity, value, features, etc.) and have a plan (save, price range, purchase date, etc.). Financial matters must be handled as business. When emotions cloud our thinking, financial decisions can have short and long term consequences. One thing we can definitely control is what we do with our money.
