Be a Savvy Car Buyer

Dr. Tony Smith, Associate Professor, OSU-OKC Business Administration

Sheryl Heaton Powers, Associate Professor, OSU-OKC Business Administration

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 Be a Savvy Car Buyer
● Definition of savvy; “shrewdly informed; experienced and well-informed.”
● We will discuss how you can equip yourself with survival tactics for being
savvy with car….
○ Researching & negotiating
○ Money & financing
○ Owning
○ Selling

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 Be a savvy Researcher
● It’s all about you: A car should be a reflection of you.
● Research and research more
● Resources for research
○ Value/price - Kelly Blue Book, Autotrader ( https://www.autotrader.com/cars-for-sale )
○ Reliability, safety, feature comparison, owner satisfaction - Consumer Reports
○ Car history - Carfax
○ Safety - nhtsa.gov, iihs.org
● Know your budget before you buy
○ Purchase price
○ Insurance
○ Fuel costs
○ Maintenance (reliability)
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 Be a savvy Researcher (cont'd)
● Research gives you the confidence to get what you want, not what they
are selling
● Watch for bad publicity…this can save you thousands
● YouTube is your friend
● Ask friends and family

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 Be a savvy Negotiator

● Skip the dealer all together: Facebook Marketplace and Craigslist are
excellent places to find private sellers and desperate dealers
● There are better times to buy a car and get a good deal
● Approach - game or poker face is best
● Don’t chat
● Don't be a hostage: It is your time
● Bring a knowledgeable friend or family member with you

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 Be a savvy Negotiator (cont'd)
● Don't be married to a specific model or year. Being flexible will save you
money.
● Skip the Options: Go for the base model initially then use the higher trims
as a negotiating tool if there is something you must have (cruise control,
back up camera, etc.)
● Know the highest commission vehicles
● Find the Loss Leader: Watch the “Bait and Switch”
● Pre-purchase Inspection

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 Be savvy with your Money
● Save up - it’s not a surprise that you will need to buy a car some day ⇒
Start a Car Fund
● If you must borrow ⇒ Good Credit = Low Financing Costs: The higher your
FICO score the more choices you have for lower interest rates on loans
● Consider pre-owned: On average a new car loses 60% of its initial value in
the first 5 years
● The $600,000 Decision

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 Be savvy with your Money (cont'd)
● Research car parts and repairs…Google (make and model of car + repair)
https://getjerry.com/questions/how-much-does-it-cost-to-replace-toyota-p
rius-brakes
● Take advantage of coupons on maintenance…dealers offer these often
● Skip the Extended Warranty: This is one of the biggest money makers for
car dealers
● Insurance:
○ Insurance cost is influenced by the type of car
○ Risky behaviour will cost you
○ Shop insurance annually
○ Save money by paying semi-annual premiums

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 Be savvy with your Money (cont'd)
● Registration Cost is Not Equal: Oklahoma charges less for lower valued
vehicles
● Opportunity costs of cars are very high: There are better Assets to put
your money into
● Not used much: On average most cars are used only 10% of the time
● Think about alternative transportation: Transit, bike, walking, Uber, and
carpooling

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 Be savvy with your Money (cont'd)
● Consider alternative propulsion: EV/hybrid prices are dropping. They save
a lot in fuel cost (electricity is a quarter of the cost of gas) and there is
virtually NO maintenance
● It’s all about the place: Consider traveling to get the best deal
● Resist “it’s all about the payment” marketing: Car dealers will downplay
the high purchase price by emphasizing how low the payment is. Do the
math to see what the total purchase price really is

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 Be a savvy Owner
● As an owner, think of your vehicle as an investment, and take care of it so
you can get the most from it
● Keep up on maintenance: Prevent issues from becoming big expenses by
some simple checks done often Car ownership calculator
● Hang on to your car for a while

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 Be a savvy Owner (cont'd)

● Check oil, fluids, tires, filters, windshield wipers

● Get free maintenance with purchase
● Free tire maintenance: Hibdon and Discount Tires
will air up, fix (some) flats and rotate for free
● Don’t fall for having to go to dealer for routine maintenance or voids
warranty
● Do a quick visual Inspection often
● Keep it clean: Clean cars inside and out hold their value more than a dirty
car
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 Be a savvy Seller
● Know what your car that you are parting with is worth: Do your research
first to get the best deal
● Be prepared to sell the car yourself…this is often your best bet. Skip the
dealer all together: Facebook Marketplace and Craigslist are excellent
places to find private buyers
● Separate the trade-in conversation from the purchase one

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 Be a savvy Seller (cont’d)
● Keep it clean: Clean cars inside and out hold their value more than a dirty
car
● Choose the setting of the photo carefully
● Don’t be afraid to use your negotiating skills when selling, too
● If you have a service record for the car (regular oil changes, tire rotations,
etc.) and an owner’s manual, show them off to the prospective buyer

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Conclusions and Q&A

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 Thank you!
Dr. Tony Smith, Associate Professor, OSU-OKC Business Administration
[email protected]
Sheryl Heaton Powers, Associate Professor, OSU-OKC Business Administration
[email protected]

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