Secondly, auctions require you to buy a car pretty quickly. Even as a used car manager tasked with buying dozens of vehicles a week, it was a hectic process. If you’re not very careful and attentive, you can make a mistake. I’ve failed to notice damage and bid too much, and I’ve even had auctioneers “run me up” with phantom bids, etc. Auctioneers are clever and they’re paid based on how many cars they auction off. They WILL try to trick you.

Finally, “public” auctions are usually filled with cars that licensed dealers had no interest in. Dealers like to buy cars they think they can sell for a profit - everything else they ignore. Cars that are ignored by dealers are usually taken to a “public auto auction” where they’re sold to less knowledgeable consumers. (This is only true of most public auto auctions, but true government auto auctions are made up of government fleet vehicles that can be bid on by anyone). If you decide to buy a car at auction, here are some tips:

1) Decide what kind of car you want before you go. Before you start buying cars at auction, you should know what you’re at the auction to buy. A lot of big mistakes are made when you buy a car you know nothing about, so choose a specific make and model (i.e. a 2002-2006 Silverado 4×4), and then only buy that model. Make sure you know what to look for, what to check for, etc. Also make sure you know what to pay. Check edmunds.com, kbb.com, and nadaguides.com for price info. Don’t bid on a car unless you know everything about it - that’s how you make a mistake.

2) Don’t feel like you need to buy when you go to the auction. One of the biggest mistakes first time auction attendees make is feeling pressure to buy. My advice is to go to a few auctions and just watch - don’t bring any money with you. Just watch and learn. You’ll be amazed at how much you can learn watching a few auctions.

3) Leave your ego at home. If you find a car you like and you start bidding, you might have a little competition. Nice cars always have a few bidders, and someone might decide they want the car more than you. If a bidding war erupts, don’t let your ego get the best of you. Don’t spend more than you should just to beat another bidder. Besides, that ‘other bidder’ might be a shill - someone who works for the auction whose job it is to artificially raise prices. It’s illegal, but it happens all the time.

4) Look in your local new car dealer’s “back lot.” Buying at an auction is hit or miss - you need to be very careful and a little lucky to find a good car. But buying an inexpensive car out of your local dealer’s back lot is easier and safer. Most new car dealers will sell you a car out of their back lot so long as you agree to buy “as-is” - they’ll even let you take it to a mechanic before you buy.

I’m not a big fan of buying at an auction - you can almost always find a better deal on a dealer’s lot.

Q. I’m trying to decide if I should buy a sports car or if I should get two vehicles - a motorcycle (for fun) and a cheap car for the winter? Any advice?

Thanks - Chris.

I like the way you’re thinking - it’s a very rational idea.

I don’t think there’s anything wrong with your plan, but I do think you should consider the following:

1) You’re going to need to insure both vehicles. Two insurance premiums are often more expensive than one. I’d check with the insurance company about what the cost would be first.

2) The “cheap car” idea is a good one, provided you can actually find a car that’s both inexpensive and reliable. After all, the whole point of having a car is to stay out of the weather. But if the used car you buy isn’t reliable doesn’t start on cold days…well, that kind of defeats the purpose. If you buy a cheap car and it craps out, you’ll need to buy another. That probably won’t save you money.

3) I hate to sound like an old man, but “motorcycles are dangerous”. It’s true. Your chances of being injured in a modern sports car are MUCH less than your chances of being injured on any motorcycle. Give this some serious thought - I’ve met a lot of people that were crippled on motorcycles. Seriously, this is a big deal.

My advice, if I’m qualified to give it (I’ve never owned a motorcycle), would be to buy the motorcycle only if you already have a reliable back-up vehicle (and if you’re responsible enough not to take chances on a high performance bike). That way you don’t have to worry about buying someone else’s problem. Nice motorcycles are less expensive than nice sports cars, and they usually perform much better.

When the novelty of riding a motorcycle wears off (or when you need to buy something else), you sell it and get a car then. A couple of good friends of mine have done this and both been very happy. The bikes were cool, but after a couple of years they decided to get something different.

The other piece of advice - whatever you decide to buy, buy it used. Now is a good time of year to find a decent performance bike and/or sports car, and you can often get them for a solid discount thru the end of April. I was amazed to see used low miles Hiyabusa’s (spelling?) for less than $5k. Those things are as fast as any car on the road, but you can pay one off in 12 months. A great deal.

1) Be Suspicious: We’ve heard unbelievable stories about people getting taken advantage of by private sellers. People will lie about how they got the car, who owned the car, why they’re selling, etc. Don’t always believe what the seller tells you: take everything with a grain of salt.

2) Take your time: If the person trying to sell you a car is a con artist, they’ll want to consummate the sale as quickly as possible. If they’re trying to “pull a fast one”, they’ll offer you anything to get you to buy immediately.

3) Ask a lot of questions: If a person is trying to sell a car that doesn’t belong to them, they’re going to have a hard time answering questions like “when did you buy your car,” or “has it ever been in an accident,” etc. It’s also smart to ask lots of questions because you’ll be surprised what the seller will volunteer. Just make sure that you listen to the answers carefully.

4) Get the car inspected before you buy: There’s absolutely no reason why a legitimate private seller wouldn’t let you take their car to a mechanic to have it looked at. If the seller is trying to hide something from you (like a bad transmission, flood damage, etc.) they won’t let you get the car inspected. If you can’t get the car inspected, don’t buy it.

5) Compare the seller’s ID to the title and registration: Before you buy from a private party, it’s important to compare their ID to the car’s title and registration. Everything should match, but if it doesn’t, you should tell the seller you need to meet the actual owner (the person on the title and registration). If you can’t meet the actual owner, you might consider walking away. If you buy a car from a person whose name isn’t on the title, you could be buying a stolen vehicle.

6) Ask for emissions test records, inspection records, etc.: You will need these records to register the car after you’ve bought it.

7) Complete a Bill of Sale: A Bill Of Sale is a good idea - it will help protect you from any future problems (in case the sale was illegitimate), it’s a good record to have, and it may be necessary for insurance, registration, etc.

As always, take your time when buying a used car. Do your used car research, get multiple used car financing quotes, and feel free to contact us with your questions.

Generally speaking, there are FOUR reasons to buy a new instead of used:

1) You plan on keeping whatever you buy for more than five years. If you keep a new car for five or more years the long-term costs work out to be less than buying an average used car and doing the same. Even better, for every year you keep a new car past five, the ownership costs get lower and lower. Keep a new car for 10 years, drive it until the wheels fall off, and you’ll save a fortune.

2) You require a special feature. If you have a special purpose or need (like towing a big RV or trailer, hybrid engine, etc.) a new vehicle is often times the best or only way to go.

3) You’re “picky.” You want a specific color or feature; you don’t want anything with scratches, dents, or a funny smell; you need the sunroof AND the manual transmission, etc. Since you’re paying good money for a car, you should try and get what you want…but if you’re really particular about features, condition, etc., don’t bother looking at used. You’re probably not going to be happy with anything that you find and you might waste a lot of time.

4) There’s a tax benefit for buying new. A lot of people who are self-employed will actually save money buying a new car because it’s a tax write-off. We can’t speak for what is or isn’t a tax write-off for your specific situation so the best thing to do is call your accountant and find out. However, new cars tend to make more sense for people that have their own business.

In summary, there’s also a lot to be said about buying a used car, but new cars have their benefits too. If you’re leaning towards buying a used car, here are some questions you should ask yourself before buying a used car. But if you find yourself identifying with one of the four reasons we’ve given then you should feel good about buying a new car.

As always, take your time when buying a new car. Do your new car research, get multiple new car financing quotes, and feel free to contact us with your questions.

There’s another good reason not to get emotionally involved with a car — when it comes to buying a vehicle, salespeople can tell if you’re emotionally involved. Like sharks can smell a drop of blood from miles away, salespeople can smell emotional involvement. They’ll use it against you; they’ll tell you that somebody else is going to come and buy the car you want if you don’t buy it today, right now. They’ll tell you that this is the best price you’ll find on that car …it’s a really nice car and people love it: anything to reinforce the image you have in your head that the car you want is the best in the world.

It’s also important to know that when people get emotionally involved, they often make bad financial decisions. These emotions can get so strong that a person might decide that even though they’ve set a budget of $350 a month, they really really want to buy a particular car. They’ll “cut back” here and there in order to be able to afford a higher monthly payment, just so they can get the color they wanted, or a special feature or two. I’ve found that people make these decisions because they think it will make them happy (because they’re emotionally involved) but they end up putting themselves in a difficult situation financially.

Emotions don’t just apply to the car you’re buying either — they often can apply to the car your trading in. While it’s normal to have a special place in your heart for your trade-in, don’t let that keep you from getting a good deal. If you take a step back and look at your trade-in objectively, you’ll usually have a better idea of what it’s worth.

Steer clear of emotions when buying your next car. Figure out your budget, figure out what you need out of your next car, do your research, and you’re guaranteed to get a good deal.

One of my best car buying tips is that you should always be willing and able to walk away from an offer. This can be your best negotiation strategy. By walking away, you make sure that you’re getting the seller’s best offer. Here’s why:

• Most sellers (private or dealership) realize that if you leave, you’re probably not going to come back. They have one shot to sell you a car.

• Sellers know that they need to make you their best offer before you go – they feel that if they tell you their best price and you still leave, then it just wasn’t meant to be.

• Here’s the best part of the “walk away” strategy: if you tell a salesperson or a private seller, “Thanks, but this just isn’t the deal that I’m looking for,” and you leave, they might call you in two hours to say they’ve got a better price.

• If you don’t hear from the seller, and you really want the car, you can always call them back and tell them you’ve changed your mind, that you realized it’s a nice car and a pretty good deal, that you’re willing to take it now, etc.. You can do this and know that you’ve negotiated for the best price while also saving face.

As always, take your time when buying a new or used car. Do your car research, get multiple used car financing quotes, and feel free to contact us with your questions.