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Buying used cars proves to be the way for many students
With summer break quickly approaching, many students will no doubt be on the go. And what a better way for students to get to where they need to go than in a new (to them, at least) car.
Purchasing a car is probably one of the biggest investments a student will make while still in school. For students on a tight budget, where summer work or part-time work provides the bulk of income, used cars prove to be the most affordable way to go.
Students may be drawn to new cars because of the warranty that they offer, but they should not overlook the benefits of used cars, too.
Mark Johnson, a salesman at Gilleland Chevrolet, said the biggest benefit of used cars for students is the price.
"Students come in looking for something that is economical," Johnson said. "A lot of them are looking for something they can afford. They just need some transportation and the dollar is the bottom line."
In order to help students afford their cars, many dealerships offer financing, which is setting up a payment plan (usually monthly) to gradually pay off the car. Even in organizing a payment plan, students need to know what to look out for.
Some places may line up a payment plan for a student, but not take into account tax or license. Without the added tax and license, students may be misguided at how much they have to pay for their car.
"Sales tax is 6.5 percent on a vehicle. That works out to a lot of money on a car," Johnson said. "One of the questions students should be asking when looking into buying a car is for the dealership to do the calculations including sales tax and license."
It also pays to shop around. When junior Laura Tkachenko had an accident with her car last year and had to get a new one, she spent the time looking for the right car for her needs and comparing dealerships.
Tkachenko needed a car right away and persisted until she found the one she wanted.
"I was pretty particular," she said. "I wanted it to be red or black, two-door, with power windows. That eliminated a lot of cars. But I finally found one I liked at Forest Lake."
Researching the car students are looking into will help, too. Tkachenko knew how much a car similar to the one she was looking at had been sold for in the past, and when the dealer tried to charge her more, she fought for the price she wanted.
"My car is a '96 two-door. My sister has bought one similar and paid $10,000 a year earlier," Tkachenko said. "This is one was at $11,000 and I knew it was over priced. So I tried to talk him down and the dealer had to talk to the manager. The dealer came with a price and I refused it saying I wanted it to be lower. Basically I told him the price I wanted."
Tkachenko said the dealer was shocked at how much she knew, and eventually she got the price for the car she wanted. Knowing her stuff paid off.
It was important for Tkachenko to get the price she wanted so she could afford the payments, which are just more than $200 a month.
Johnson said students should also make sure they can afford to pay the insurance on the car they are buying.
"Be sure to check insurance," Johnson said. "Some people think they can work with a salesman to figure out the payments, but then they forget about how much it will cost for insurance."
Even if students have no knowledge about buying a car, dealerships like Gilleland offer counseling to help.
During counseling, the dealer and the buyer will sit down and go over what kind of cars the purchaser can afford.
"The biggest thing for me is the counseling aspect to make sure purchasers aren't getting in over their heads," Johnson said. "It doesn't do you any good to buy a car if you can't afford it. With college kids, hey are going to go on to a career where they can afford a nicer car later on. Now they should concentrate on getting a car they can afford so they don't wreck their credit."
Not all people shopping around for used cars are college students, but a lot of college students who are shopping for cars are looking at used ones.
"We get a lot of younger people looking at used cars," Johnson said. "The Cavalier has been very popular for kids. It's smaller and there are some sporty models. You can get a base model and pick them up pretty reasonable. It's when you start to add some features that the price goes up a little."
For some, like Tkachenko, searching for the right car can be a headache, but it pays off in the long run.
"It is very frustrating but you don't have a choice when you need to buy a car," she said.
Tracy Ust can be reached at: [email protected]
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