3. People who would consider purchasing a vehicle online
(result of a 2015 Accenture survey of 10,000 people in 8 major countries)
4. Today’s Overview and Objectives
• Our 5 ”C’s” seminar goal of this mini lesson
is to make sure you will be better prepared
when you go out and buy your first car and if
followed is guaranteed to save you money...
5. #1 Rule : buy used
– at least for your
first purchase!
6. • Approximately two out of every
three cars sold in America are
used cars.
• Many consumers, especially
individuals who are first entering
the workforce, can’t afford to buy
a new car.
• The cost of insurance is generally
higher for a new car
• Buyers can usually afford more
options and luxury items when
they purchase a used vehicle
Why buy a used car?
7. Plus there’s lots of great
inventory of 2 and 3 yr
old vehicles – and many
still have factory
warranty!
8. The buyer of a used vehicle
avoids a significant portion of
the depreciation costs, which
can be up to 40% of its value
in the first two years.
DEPRECIATION!
9. How much does the average new car
depreciate in value?
10. “300,000 is the new 100,000…..”
The average age of a vehicle on the road today
is 11.4 years!
Quality improvements by
virtually all vehicle
manufacturers have
dramatically increased the
useful life of cars and light
trucks.
Most newer vehicles come with
a 100,000 mile warranty on the
engine, transmission and
drivetrain
11. Rule #2 : The 1/10th Rule –
divide take your monthly
take home pay by 10 – that
should be your maximum
monthly vehicle payment.
Also - don’t borrow beyond
36 months….
How much should I borrow for my
used car?
12. Why not borrow more than 10%?
Budget Item $$ per month
Food $400
Rent/Mortgage &
Property Tax
$600
Credit Card $300
Fuel, Insurance &
Maintenance
$400
Student Loan $150
Entertainment &
Miscellaneous
$400
Retirement 10% of your take home pay!
13. If done correctly, it’s now safe –
and economically
advantageous - to purchase
vehicles online
• Use reputable dealers
• Be very careful purchasing older
vehicles this way
• If you need more peace of mind,
obtain a purchase protection
policy from your dealer
(eg. www.dealshield.com)
14. More Time Spent = Greater Savings
Howtobuyausedcar
Figure out
what you can
afford and
what you
need
Go get your
wheels!
Rule #3: Never buy any car without
researching first!!!!
Find out what’s
available in that
price range
15. When is the best time (and the
worst time) to buy a used car?
16. RULE #4: TRY TO SELL YOUR CAR YOURSELF
• The dealer is generally going to
give you $1,000 or more less than
you could sell it privately.
• Check websites like kbb.com,
nadaguides.com and
edmunds.com to see what you
can get privately
17. • Ask for a Carfax or Autocheck
report
• See if a condition report (CR) or
sellers disclosure (SD) is available
• If you are going to borrow, get
“pre-approved” by your bank or
credit union before buying
• DON’T RUSH !!!
Any other tips on making sure I make
the correct purchase?
18. • Buy “used” and sell your
car privately for your
biggest savings
1
• If you have to borrow,
don’t get overextended2
• Make sure you are well
prepared before buying
anything
3
Today’s Mini Lesson Summary….
19. Resources and References
• MJR & Associates Inc.
<www.mjrandassociates.net>
<jrebry@mjrandassociates.net>
• Obtain used car values at:
<kbb.com> <edmunds.com>
<nadaguides.com> <truecar.com>
• Accenture.com (Global Consulting)
• Wall Street Journal
