How To Make Your Dream Car A Reality And Purchase It


Do you love cars? Do you dream of being at the wheel of a Jaguar, Porsche, sedans, and SUVs at least once in your life? What if you could own one, and live your dream for years? Obviously, not everyone can afford a luxury vehicle, but it may be a more realistic goal than it seems..
And when we see one we covet, our hearts beat just a little bit faster as it passes by. It’s no surprise, then, that as much as we enjoy and appreciate autos, we also love to buy and sell them. In 2012 alone, vehicles accounted for $7.6 billion in sales on eBay with a car selling once every two minutes. People even flip them on their phones—more than 13,000 eBayers sell theirs that way every week, with some, like a Porsche Carrera GT or Porsche 911, going for hundreds of thousands of dollars. Pretty amazing. So find out how to make it happen in this article. Let me take you for a spin down the road to auto Nirvana.

3 Crucial Aspects You Must know

1. How to lower the purchase price
This year’s Porsche 911 Carrera costs $104,000 at the dealer.1 That’s a lot of cash for one car, discouraging a lot of potential buyers. But do you have to kiss the car of your dreams goodbye? Absolutely not! There are several ways to lower the price. Here are a few:

Trade in your car to the dealer. This is a very popular strategy for buyers. Offering the current value of your car to the dealer is an easy way to lower the price of the vehicle you want.2 You save not only on the sales price, but on taxes too. However, be aware that cars lose value every year, so the older your vehicle is, the lower its trade-in value will be, so you may need to look at other strategies too.

*Good to know: You can sell your vehicle yourself. You’ll probably get a better price, because merchants always make sure to have a profit margin on a purchase. However, the legal process, the hassle and the risks associated to the sale are entirely your responsibility.

Only get minimal options and accessories. Regardless of whether you’re looking for a luxury vehicle or something more down to earth, merchants will offer a whole host of options and accessories during the sale: heated seats, air conditioning, USB ports, and so on. Some of them just aren’t worth it, and they raise the car price exponentially. Adding a sunroof, for example, can inflate the bill by nearly $2,000. An integrated GPS system will cost about the same, but you can get one in any electronics store for a fraction of the price. Luxury manufacturers also have a bad habit of offering pricy but useless options, such as Porsche’s leather seats or the starry roof available with certain Rolls Royce models.3 Don’t necessarily say no to everything—some options are worthwhile, like air conditioning or automatic transmission—but keep it to the bare minimum.

Buy used. Depreciation is a reality that all automobile owners must face. All vehicles gradually lose value over time. It’s a factor you can use as a buyer—don’t ignore the used luxury vehicle market. You’ll find cars in excellent condition at a more affordable price. Jaguar, BMW and Porsche owners, for example, tend to take excellent care of their ride, and often only take it out for special occasions or when the weather is nice. You’ll get your biggest savings by choosing a 2008 model rather than a 2018. Cars depreciate the most the minute you drive off the lot, so a nearly new vehicle will be much less expensive. But make sure to do a complete inspection to avoid any surprises, because luxury vehicle repairs can be very expensive.

2. Buy from a dealer or an individual?
Unless you make enough money to be able to buy a luxury car new, you’d probably better look at used models. The question becomes: should you buy from a dealer or an individual? The two options both have pros and cons, but the luxury car market has its own reality, and one of the options is definitely better.
Buying from an individual is, in most cases, easier and less expensive because there’s no intermediary. An individual may also be more flexible on price, depending on their situation. However, Quebec’s Consumer Protection Act doesn’t cover this type of transaction, and there are no laws requiring guarantees. If you choose this route, we recommend having the vehicle inspected before buying it.
That’s also why we advise going to a dealer for a luxury vehicle. Not only will your purchase be covered by guarantees and after-sales service, but also keep in mind that luxury vehicle parts are more expensive and often harder for independent garages to get hold of. When you buy from a dealer, you can deal directly with the manufacturer.

3. Types of financing available
While there’s no special type of financing for buying luxury vehicles, there are several options available:

a)   Should you get a personal loan or an auto loan when buying from an individual?
That’s the big question for buyers. An auto loan is definitely more advantageous, because the interest rate is much lower. Even if you’re buying your dream car from an individual, we recommend an auto loan. Contact your financial institution to get an auto loan from your local branch. It’s an instalment sales contract (ISC)i, like at a merchant, where the vehicle is used as collateral, giving you a lower interest rate than a personal loan without collateral. It’s always better to agree on a price with the seller before applying for a loan.

b)   Auto loan at a merchant or dealer
Auto loans are especially advantageous when you’re buying a more expensive vehicle directly from the dealer. Dealers often have the most competitive interest rates on auto loans, because they use instalment sales contracts (ISC)ii, where the vehicle is used as collateral on the loan. At many luxury vehicle merchants, they have good financing programs for certified used vehicles. These programs also usually offer a warranty on the vehicle, which covers buyers in the event of premature failure.

What’s more, the loan application is handled on-site. Desjardins members can also get their financing pre-authorized online on AccèsD before heading to the merchant. That way, they can shop for a vehicle with peace of mind, knowing their loan has already been pre-authorized. Plus, they don’t have to fill out a loan application at the merchant and disclose their personal financial information. You can keep your financial situation to yourself!

Don’t be afraid to negotiate! The luxury vehicle market is a little different. Every transaction brings in a large amount of money, and there aren’t as many buyers. Both parties involved in the transaction therefore have a vested interest in coming to an agreement. In general, merchants have a wider profit margin on luxury vehicles than on other cars. Dealers buy their cars directly from the manufacturer, and the higher the price, the greater the difference between the cost price and the suggested retail price.4 That means there’s room to manoeuvre. When you negotiate, remember to:

• Let the merchant know exactly which model you’re interested in. If you know the colour and options you want, they can more easily determine how much wiggle room there is, making the whole process easier.

• Set a price with the merchant before offering your vehicle to trade in. While we advise you trade in your car to lower the transaction price, it’s important that you first agree with the merchant on the price of the new vehicle. Your car should be there to lower the price, not the opposite.

• Choose the frequency of payments and the terms you’re comfortable with before signing the contract. Think of all the additional costs, like interest rate, accessories, and maintenance. It will be harder to change the terms after you’ve signed, so you need to be comfortable with your choices! 


How to Purchase It

Step 1: Educate Yourself
Car collections begin with memories—the desire to acquire that same kind of, say, stick-shift Volkswagon Beetle your dad taught you to drive (except this time, no hole in the floorboards). It fires up your ignition and gets things rolling.

But before you start your search for the perfect Beetle, make sure you learn as much as you can about the car. How common is the make and model, and how many exist? Are repairs simple or complicated? Are there garages in your area that service this type of car? How popular is it in your region of the country compared with the U.S. as a whole? The more you can learn early on, the better off you’ll be in the long run.

A great place to start your search is the Web. Unless the car you’re looking for is super obscure, a simple search on Google or eBay Motors will yield thousands of entries to peruse. 

There are also countless collectors clubs, like the Classic Car Club of America, along with sites dedicated to specific makes and models where you can gain even more insider information on exactly what you’re looking for.

Step 2: Find Your Ride
Once you’ve settled on the type of car you want, you’ve got to determine whether it’s in your price range. Published guides like Edmunds or Kelley Blue Book can give you some broad estimates on your auto’s value. A simple Web search for the type of vehicle and its year will also usually display what the selling range is for that make and model.

Finding that exact car you’re looking for can sometimes feel like searching for a needle in a haystack, but stick with it. Once you’ve located a car you’re excited about, that’s when the real fun begins. Chances are it’s not just going to be sitting in a garage on the other side of town. It may be across the state or on the other side of the country. In that case, you have to ask yourself: Is the car a good deal or is it too good to be true? “Buying a 1963 Corvette that’s 3,000 miles away [based on] three pictures on the Web is fun,” says Nonnenberg, “but it usually ends in tears if you’re not careful.”

To start the vetting process, always ask for service records. This will help in some cases, but if the car is 50 years old, records could be spotty at best. Other options range from traveling to see the car for yourself, which could be costly, depending on the car’s location; hiring an unknown local mechanic to give it a once-over; or hiring an independent car inspector, like InspectMyRide, to check out your dream car. (InspectMyRide is an incredible service, for the record. An inspector will drive out and check out the vehicle on your behalf, providing a 150-plus- point inspection report.) Between that and an AutoCheck report, you should easily be able to determine if the asking price for your dream is legit or an insta-pass.

If you’re having a hard time finding a car that fits all your specifications, broaden your parameters. Say you’re looking for a four- wheel-drive Jeep in January—you will be one of thousands looking in, say, the chilly Northeast or the Rockies. Instead, look in warmer regions like Arizona or Florida. The price you’ll pay for having the car shipped could easily be made up by the lower sale price you’re paying for a car.

Step 3: Maintain Your Dream
Finding your perfect classic car is exciting, but the delight should continue with ownership. More than new autos, however, classic cars need to be looked after. Besides insurance and engine maintenance, make sure to keep your baby cleanand shiny. Repair or replace any interior cabin parts as needed. Part of the fun of owning a classic car is searching for period accessories like door handles, in-dash radios, or aftermarket toys like tachometers, continental wheel kits, and more—all of which make a special car really shine.
Wash and wax the exterior at least once a month in the driving season (late spring through early fall). Avoid driving your vintage ride in bad weather or dangerous road conditions. Sure, driving always entails some risk, but you should never increase the risk by putting your vintage car in situations where it could be damaged or worse.

Consider practical logistics as well. Make sure you have a safe, dry, secure place to store your car. A locked, heated garage is ideal. Treat your baby right, and when the right day comes, it will all be worth it. I know it’s hard to admit at this point, but there may come a day when it’s time to sell your dream car and move on to your next passion. Keeping your car in ready-to-sell condition makes that day easier. You may not be able to imagine it today, but it happens. Fair warning.

As for me, I’m currently passionate about the handed-down 1998 BMW 328i I got years ago from my now-mother-in-law. She taught me to drive its stick-shift in a single afternoon down in San Diego, and the next day I drove her all the way up to San Francisco. Lucy (that’s her name—the car, that is) has been with me ever since, for more than 100,000 miles. In fact, she just turned 339,000 miles old the other day. I love her, still drive her, and have gone to ridiculous levels to keep her running—and, yeah, probably spending more money on repairs than she’s worth. She’s become a part of my identity. And, as a result, I’ve become so loyal to BMW that I purchased a new one for my wife. And who knows, maybe this old vehiclewill be the passion project of our future kids. Because, as much as I love Beemers, especially Lucy, I’ve currently got my eye on a beautiful old MG convertible.

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