Making large purchases is generally an unavoidable aspect of life. These can certainly be stressful experiences when they involve unfamiliar territory. Aside from acquiring homes, businesses, or properties, the next largest purchase most people will make sometime in their life is a vehicle purchase. There are a lot of layers to this process, some of which can be very confusing or misleading for buyers. I wanted to address some of these areas, which I have learned through personal experience and from prior work experience in this industry:

• Buying Used: While a new car is right out of the factory and has many perks, there can also be value in purchasing a used vehicle that has already begun its depreciation curve and proves to be more affordable. If buying used, ensure you ask the seller for a CarFax report. This shows the maintenance and ownership history, and any accidents or repairs that occurred during prior ownership. If there is a remainder of the factory warranty, it will transfer to you as the new owner. You can also buy a “Certified Preowned” (CPO) vehicle, which has undergone a more comprehensive servicing process by the dealership and includes extended warranty coverage provided by the manufacturer. This extended warranty coverage will vary from one manufacturer to another, so it is important to understand the details of what is covered and for how long.
• Understanding the Fees: If asking the seller for an “Out the Door” quote, you will notice it is normally much higher than the advertised price. Sales tax, registration fees, and Document/Processing fees are all added onto the advertised price. Document/Processing fees are typically $400-500 in Pennsylvania but will vary greatly if you are working with a dealership out of state. Some dealers will also include optional add-ons to their initial quote for things like window etching and paint/fabric protection, which in most cases, you can decline if you do not want them.
• The “F&I Office”: After agreeing on a price, you’ll likely be escorted to the F&I (Finance & Insurance) office to finalize the transaction. This is where you’ll complete payment and sign all necessary paperwork. Dealerships do have noteworthy profit margins in the extended warranty and protection packages that they will often try to sell at this point in the process. Do not let this person pressure you into purchasing any of these things if you are not comfortable with the product or the pricing of it. Use your best judgement and the counsel of others to decide if these are worth the cost.

If you find yourself feeling confused amidst the purchasing process, we are here to help! At Master’s, we will walk with you through the planning and execution process for any large expenditures. We want you to feel empowered and at peace while navigating these large financial commitments.