BECOME A GOOD CAR BUYER

What should be a joyful experience often is distasteful and intimidating. Purchasing a car isn't cheap; in fact, it's getting more expensive all the time. But since the automobile is a necessity, it's prudent to acquire the skills necessary to make a good car purchase.

Things to consider when buying a car:

Pay cash. Whenever possible, use cash. With a typical new car purchase and loan, you will end up paying about /,000 in interest over the period of the loan. Also, interest on car loans is not deductible on your taxes.

Buy a slightly used car. Value of a new car drops 30% once you drive it off the lot. The loss in value will never again be as great as it is in the first two or three years of owning the car. So start out letting someone else suffer the 30% loss and buy a car two or three years old.

Know what you want. Don't begin the car buying process until you know exactly what you're looking for. If you want to get the best deal you can, you must become focused and stay that way. The more different models you are interested in, the more easily it will be for the salesman to sell you a bill of goods which you may not want - for a price you really cannot afford. Do your homework, pick one model, then start negotiating.

Determine the dealer cost. Before you get on the showroom floor you must have some idea of the basis on which you're negotiating. Go to the library or get on the Internet and find the information about the model you want. (E.g. edmunds.com or JLParis.com). If you are purchasing a used car, you'll need to consult one of the many used-car guides (e.g. NADA Official Used Car Guide).

Determine the value of your trade-in.Know your car's worth. If you aren't satisfied with what you're being offered, sell it yourself. It's a bother, but usually you'll get more money on the deal.

Never buy a car during your first trip to the dealer. It takes time to get to a fair price. Be willing to spend the time to get the best deal.

Beware of brokers. They probably won't save you much money, and may be more trouble than they're worth. Brokers don't work for free. They arrange delivery of your car through a local dealership who also receives a fee. Brokers aren't interested in trade-ins and if there is a problem with your new car you may have a tough time getting it resolved if you bought the car from a broker.

Don't arrange financing through the dealership. It may be easier to do it all at one place, but you will usually find lower rates from a bank. Arrange financing before you begin shopping. Go to a local lender and get approved for a loan in the appropriate price range.

James L. Paris is host of The Christian Consumer Advocate, a nationally syndicated talk show on the USA Radio Network. The founder and CEO of five corporations ranging from financial planning to life insurance, he appears on more than 100 radio and television talk shows each year.

The James L. Paris Companies are a group of for-profit organizations designed to help consumers live a prudent, cost-effective, worry-free financial existence. You may call at 1-800-727-4792 to find out more about their services.

James L. Paris Financial Services may be reached via email at JLParis@att.net, or visit their web site at www.JLParis.com. Their web site offers information and help on many financial issues and includes links to more than one million financial and consumer Internet sites.

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