As a senior, I have about four weeks left to make some pretty big decisions in my life, one of which is buying a car. As a soon-to-be college graduate I need to get myself some wheels. I need a car to get a job, so car searching became my top priority as of two weeks ago.
The search was tough. Some of the dealerships I went to were disappointing. At one of the businesses the vehicles weren’t priced, at another the dealers were younger than I and couldn’t explain warranties or payment options, and at another the vehicles I wanted were way out of my price range.
But to my surprise, I also found some enticing buying incentive programs geared just for college graduates and first-time buyers. These programs made the shopping process seem more realistic for a college student, such as myself, who may not have buying experience.
Oh sure, I’ve owned a few vehicles before. There was the ’84 Nissan that I drove into the ground. The Subaru Justy I had for a year until its wheels fell off (I should have known, considering I bought it off some guy’s lawn).
Then came the ’89 Dodge Omni which I traded in within a few months because I was too embarrassed to be seen driving it. A gray Subaru Royal arrived next, but died months later.
I finally bought my first sort-of-good car my third/sophomore year at USM, when my roommate sold me her white Hyundai Excel. It was finally a car from the 90s and ran pretty well. I bought it in January and by July it broke down on hot days after I drove it for more than an hour.
Well, two years have passed and although I haven’t saved a cent, graduation is coming and I know my parents and most of my family will kick down the cash. So, I’m buying a “real” car.
I’ve found that buying a decent car from a dealership is quite different from shopping off some guy’s lawn. Buying a car takes patience. It means shopping around, asking questions and talking with other car owners. I offer some suggestions from my shopping experience.
First, I narrowed my selection and focused on a couple of different cars. I have always been partial to Volkswagens, Hondas, Toyotas and Saabs. I know I want a foreign car that’s not a two-seater or a club van.
Then I started looking in the paper and listening to the TV and radio. I’ve noticed a lot of dealerships advertising spring sales. I compared prices and shopped around. I told the sales people that I was doing some comparison-shopping (that’s supposed to show them I’m a smart consumer).
Then I figured out my budget and how much I could afford to spend each month on a car payment and insurance. I also set aside as much money as I could for a down payment (graduate funds), which is almost always needed to buy a car.
Next I decided which dealership to go with. One that offered a selection of cars I like and had the most likable sales people. That was Morong Falmouth.
After checking a few other places, including the one with the ding-dong sales kid, and one that was so big no one seemed to acknowledge my existence, I felt the most comfortable with the folks at Morong. They were knowledgeable about their products, not too pushy but eager to help me find a car.
After hours of test driving (my father always told me to take a car for a test drive and to a mechanic before making the purchase) I decided to go with the Jetta, the ever-so increasingly popular Volkswagen. It seems like I see them everywhere now.
Now I have some serious decisions to make before I can bring the car home. I have to decide if I want to lease or buy a used car. I know for sure that I can’t afford to buy a new one. But the dealership’s leasing options are very reasonable and enticing.
Leasing a car is similar to renting an apartment. It means the driver leases the car for X amount of time, usually one to five years, and pays a lower monthly payment than a driver who is paying to own. At the end of the lease or term the driver has an option to buy the car or trade it in for a new one. It’s like owning half a car, Michael the salesman explained.
There are certain rules and guidelines the driver follows within the lease agreement which some people consider limitations. For example, the car can only travel a certain amount of miles each month and charges can be applied for excess wear. Leasing depends on how much traveling a driver does, what type of car it is, and how much wear and tear is put on a vehicle.
The positive aspects are having a brand new car with your choice of color, interior, low mileage, and the ability to exchange it for another brand new car at the end of the lease, and the warranty coverage is usually pretty extensive.
Of course, buying eliminates restrictions. Buying usually means financing where the driver makes an arrangement with the dealership to make monthly payments for the length of the car loan. As soon as the loan is paid off the car belongs to the driver.
The drawbacks of buying used may include hidden problems with the car. Buying usually means the car comes with a warranty that offers less protection than a warranty on a lease, and after the warranty runs out the driver is responsible for repairs.
One of the special buying programs offered at Morong is their College Graduate Program. This financing program doesn’t require a co-signer or credit history. As long as I’m a student getting my diploma within the next four months (or I graduated less than two years ago) I am eligible for a special offer through Volkswagen. I am basically guaranteed a new car as long as I have a full-time job or a written commitment from a future employer, and my monthly payment is less than 25 percent of my monthly income. The down payment depends on whether I am leasing or buying. The idea behind this plan is to give the driver freedom to make choices about a vehicle and to establish credit.
O.K., so at this point I was basically sold. I knew what kind of car I wanted, I liked Mike and I was eligible for the Graduate Program. Then Mike tells me about another option, the “First-Time Buyer Program,” a finance plan where the only qualifier is that this is the first vehicle ever bought and the driver has had a full-time job for a year. (I think I still qualify because all of my cars were hunks of junk bought off friends.) Again a co-signer and credit history are not needed. Ten percent of the vehicle cost is due at signing and the monthly payment must be less than 18 percent of my monthly income.
I learned that the key to getting a new car and feeling confident about the selection is to shop around. Sure, I asked about warranties, certified vehicles, special programs and sales. I talked to my friends and other car owners. But, I can’t stress it enough: shop around. There are several dealerships out there that offer similar programs to the recent graduate and first-time buyer. All a driver has to do is ask about options.
It seems like there is a lot that goes into buying a car, and as one of the salespersons at Morong pointed out, buying a car is the biggest purchase in a younger person’s life. It’s not necessarily a fun process but it sure does feel good to be educated about your purchase and to have choices in the buying process.
I think it’s going to feel good driving down the highway in my Jetta with the sunroof open and my boyfriend in the passenger seat changing the CDs.
News Editor Sherry Whittemore can be contacted at [email protected]