Modern-day Pilgrims can’t rely on the Mayflower to get around anymore.  We roll with Toyotas, Buicks and Hondas these days.

And no matter how well you take care of your automobile, sooner or later you’ll have to replace  it – recession or not.   If you find yourself in need of upgrading your wheels, consider retracing the steps I took in 2007.  I think this method of buying a car could really help you save a bundle.

1. I knew exactly how much money I wanted to spend.

I buy cars rather than lease them because I usually hold on to them for at least 10 years.  Being a clever guy, I concluded that I wanted a car that would last at least 10 years.  I knew I could sell the car I was driving at the time for about $22,000 and I only wanted to spend another $15,000 on top of that.  (I don’t like car payments.)

2.  I was clear on exactly which car I  wanted.

I did my research.  I was looking in 2007 and I knew I wanted to buy a a 2 year-old car.  In my case, I wanted a Lexus 430 LS.  The market was good.   My wife had been telling me for years that I should buy a nice car.  Anyway, I’m kind of big fellow and I wanted something that I could fit in comfortably.  I also  happen to be partial to Japanese cars.  I don’t know why….mabye its because they are safe, reliable and they last forever.  Call me crazy but I find that attractive.

3.  I was lucky and my wife stopped me from doing a few really dumb things.

The first lucky break I had was that I planned well.   I went looking for a car before I actually needed one.  I planned ahead and started shopping well before I actually planned on making the purchase.  This put me squarely in the driver’s seat (pardon the pun).

But I almost made a huge error anyway.

During my car quest, my wife and I drove past a car dealer on the way home from the airport.  We were pretty emotional because we had just dropped off our eldest daughter.  She was on her way to Israel for 3 years.  As I said, we were emotional to say the least.  We thought we’d “distract” ourselves by car shopping – big mistake.  We almost got roped in to a terrible deal.  They had the car I wanted but it had high mileage, it was overpriced and the dealer wasn’t willing to give me enough for my trade in.  Never shop to distract yourself. Never.

4.  Shop on Ebay

Even though I had no plans on buying the car through Ebay, it was a great resource.  First, I got a sense for what the inventory was and how fast cars were selling.  I also got a good feel for what I should pay for the car.  Finally,  I made contacts with brokers who were taking back 2 year-old cars that had been turned in after their initial lease.

5.  I bought a certified-quality car without paying a certified-quality price.

I didn’t want to spend all that money and then worry about getting a lemon.  Once I identified the car I wanted and the broker I wanted to use, I took the car to the dealer and asked them to give the car a complete diagnostic.  I told them to do a certification inspection.  This cost me $200 but it was well worth it.  The car I bought cost me $34,000.  The same car at the dealer was $50,327.

Like this article? You will love getting my free brilliant financial updates! No spam, and I won't give your email address to any other person or company. That's a personal promise. Neal Frankle, Certified Financial Planner, Los Angeles, California.

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