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Category: Car Buying
Tags: BuyingCarsCostGuidelinesReliability
Entities: Alfa Romeo StelvioAuto PressConsumer ReportsDavidEVsJD PowerLand CruiserLexusToyota
00:00
hi everyone it's David from Auto press as you guys know buying a new car these days is one of the most important things we have to do because it costs a lot of money and takes a lot of time but trying to figure out which car to buy is also like trying to figure out a puzzle it's
00:15
complicated it's like a matrix of things to consider and there are so many factors and criteria to consider that some of us just get confused and you know what sometime we just give up but maybe if I can give you some important guideline you might be able to make the right decision faster and easier and end
00:32
up with a car that you're going to be happy with so as an engineer let me give you 10 important criteria or factors to consider when buying a new car so that you were able to make the right decision let's [Music] go welcome back so how do you decide
00:48
which new car to buy or maybe even a used car well it takes some patience takes effort and knowledge and insight to figure out what to do with your next new car or next used car but I think I can give you some really important guideline that will streamline your
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process and help you decide the right vehicle for you in fact I'm going to give you 10 things to consider the first rule is what I call the 8020 rule which is very simple buy a c that you need or you want to use 80% of the time versus trying to buy a car that you might need
01:19
once in a while for example most of the time maybe you just need an SUV like this one right here This Is My Land Cruiser and then maybe once in a while you have your in-laws or some extended family coming to visit you and you need a minivan because you need a seven passenger or eight passenger vehicle so
01:36
you decide I think I should just buy a minivan or big SUV with the three rows because you know what whatever once a year twice a year I got to drive some people around well that's the wrong decision because if you really need to get a minivan or big SUV to move some
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people around once or twice or even three times a year go and rent it it's way cheaper to do that than to compromise your purchase and buy something that you don't most of the time so 8020 R maybe even 90 10 R buy a car that you want or you need
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80 or 90% of the time and for the occasional times when you need a minivan or a truck or something to toll then rent them or borrow from your friend but don't make a decision based on the small percentage of time that you might need that car for so that's rule number one
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8020 rule or maybe even 9010 rule the second really important factor to keep in mind is what I call the life cycle cost now I talk about this in my business classes because corporations and businesses also make the same mistake and that is don't make a decision based on buying price or the
02:38
price you're going to pay when you first pick up the item this applies to whether you're buying a car or anything else you're buying but instead take into account the entire cost of ownership over the time you're going to keep the car so let's say you're going to keep the car for 5 years then figure out or estimate buying cost minus the resale
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cost which will give you the actual cost of the the ownership over the 5 years or longer and then take into account things like maintenance because maybe maintenance will be included as part of package obviously fuel cost the insurance cost can be dramatically different from one type of car to the
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next type of car especially if you're buying a sports car versus let's say a minivan so take all these into account and calculate out the life cycle cost take the purchase price minus the estimated resale value then take the difference divide up by number of years you expect to keep the car add the
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annual Main M add the manual insurance cost add the annual fuel cost again based on the estimated range that you're going to be driving and then package that up and figure out the actual cost per month and that way you can do a fair and honest and accurate comparison
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between a Model A and A model B or model C because sometime the cost might be a little bit higher than you want to but the resale value is super high like this one right here in the Land Cruiser and therefore the actual ownership cost could be lower other times you buy a car
04:00
that's really good price with a promotion but the res value is terrible and maybe the fuel and the maintenance cost is high then the total cost of ownership could be higher than a car that you buy that is more expensive so again number two life cycle cost calculate it out don't base it on the
04:16
peer Purchase cost take into account the entire cost the third factor to keep in mind is also very important that's reliability now in some cases is hard to predict a long-term reliability such as this one right here which is a 2.4 Turbo Hybrid in the Land Cruiser because it's new engine new model and we don't know
04:34
yet how good the reliability is over next 5 10 years until much later on but assuming you can get some data Maybe from Consumer Report which isn't too bad maybe even from JD Power which isn't the best source but but combine data from different sources go and take a look at some of the forums which will also give
04:50
you some idea uh also go and talk to the um the service shop or mechanics and service department at the dealership sometime they'll be honest enough to tell you don't buy a BC or CDE because they had some troubles in the past so try to get a kind of both objective and some subjective data around reliability
05:07
and then use that as one of the factors to decide which car you should buy obviously you want to buy a car that's most reliable and that also means that generally speaking don't buy the first year maybe not even the second year of any new models from any brand that
05:23
includes Toyota and Lexus even though in the past I said it's pretty safe to buy a Toyota or Lexus model in the first or second year I just wouldn't do that anymore because of the recent recalls and issues they had so even for a brand like TOA I would just wait one or two years uh ideally you buy the facelifted
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model which will be usually fourth year or sometime the fifth year that's when they fix all the bugs and issues with any brands with any automakers so yes look at the reliability data if you don't have enough data then just avoid buying the first couple of years and buy the third or fourth year or maybe even
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wait for the fa lifted year that would be the best year to buy in terms of reliability the fourth reason is being objective versus being subjective so more to do with emotional attachment to a car and this one is a bit hard to explain because most of us have some
06:12
kind of attachment or some kind of Desire or love for a particular car for example I've always wanted Land Cruiser so it didn't matter that he has a 2.4 Turbo Hybrid instead of a six-cylinder engine it doesn't have a naturally aspirated engine but I always wanted Land Cruiser so I bought one and as you
06:28
guys know I buy and sell many different cars over the years but what I have learned over the years is that most of the time when you have some kind of emotional attachment or emotional desire to buy a car well some of those things will just wear off after two to three month well maybe 6 month let's say it
06:45
doesn't matter how much you love the car when you first bought it maybe the design or the interior or the color you really fell in love with it if something is not quite right with a car or if it's something that doesn't quite meet your need I guarantee in 3 to 6 month time you're going to get tired of the car
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even though you might have fell in love with it before so make sure that your decision making process is more to do with what you actually need is more to do with objective data and more to do with your experience driving the car when you take it for a spin versus
07:16
whether or not you like the color or the exterior design or just attachment to a particular brand or a model because they tend to wear off and the flip side of the coin is that sometime there are cars that I don't really like at all in terms of design it doesn't look great maybe I don't like the color but I fell in love
07:31
with it after owning it for a few months because it drives so well it matches to what I need so the opposite can happen as well and so the best advice I can give you is go and drive many different cars and make sure that your decisions are based on actual experience of driving it and looking at it and sitting
07:48
in it as opposed to your emotional attachment based on exterior design or your first glance or first love so that's something to keep in mind the fifth point is somewhat related to the fourth one and that is make sure that the capability of a vehicle you're buying matches to exactly what you're
08:04
looking for and your needs I don't just mean in terms of SUV versus minivan but I'm talking about features for example I often do long driv to Seattle so having an adaptive cruise control that is also almost autonomous is extremely helpful for me on this Land Cruiser I do have to
08:19
hold on to steering a little bit but for the most part it will steer itself and makes the long drive two or three long hour drives so much easier so that is a very important critical element for me on the other hand the stereo system on this Land Cruiser isn't all that good but it doesn't matter to me because I'm
08:35
not always listening to stereo I'm usually listening to podcast or something else so it's not so critical that I have the best stero system but maybe for you having the best stero system is critical but maybe having adaptive cruise control is not so you got to figure out and dial in exactly
08:52
what you need if you need to tow a boat for example you have to make sure that uh there's enough towing capacity to match whatever you're towing and if you want want to go camping and fishing like I do then obviously you want something that's more practical for that purpose so so make sure that you write down exactly what you're looking for in terms
09:07
of features and don't compromise them because again later on you'll regret if you don't have those things for me for example the some of the most important thing is to have adaptive cruise control to have a decent stereo but not great stereo and I need a space in the back to put things for my fishing and camping
09:23
those are critical things and I also want fun to drive character I don't want to drive a vehicle that has a really light steering or poort handling those are important critical things for me but you might have a different needs and different requirements make sure you write them down and list them out and match it to the car you're looking for
09:40
the sixth important factor is to do with a dealer Network and dealer service for example let's say you fall in love with Alpa Romeo stelvio but the dealer is 700 miles away or almost th000 km away well that doesn't make any sense because for one the alha mails aren't reliable and
09:56
if you have taken in for service often it's going to frust trates you like anything if it's really far away so you want to make sure that that there's a dealer that you trust or you like close by is not too far away and that they have a good service and support system for your vehicle for your brand it's
10:11
possible that you end up with a car that you really like but you can't stand the dealership because they don't take care of you and that could be just an added stress so I always say go and Hunt around for a right dealership go and talk to the service shop and go and talk to the parts department make sure you get to know the dealer as a whole
10:27
because you want to make sure that you have a dealership close by that you trust and that you feel comfortable with now keep in mind that if you go to the more of a upscale Brands like Lexus versus Toyota you will always get better service and that's also important factor if you want the least amount of stress from a dealership then you should move
10:44
up to a more of a upscale brand premium brand generally speaking they will take better care of you as I witnessed with the Lexus model compared to Toyota models although for me I know these dealers so well that I get a really good service regardless but I wouldn't buy from a particular brand just because I
10:59
know that they don't have a good reputation for servicing and those things are really important later on as you continue to own the vehicle because some always going to go wrong what else can you consider and think about as you try to figure out the best car for you well the seventh factor is what I call
11:15
the past present and the future what do I mean by that well first of all don't let the past always dictate your present moment decision for example 10 years ago you had a bad experience with a particular brand so you swore that you will never buy that brand well obviously 10 years later things can be very
11:31
different at the same time the reverse of that could also be true in a sense that maybe decades ago your family bought a particular brand and they were very happy with so you want to stick with it well once again things change so the past does not dictate the present or future so first of all don't let the
11:47
past hold you one way or the other second thing is that don't always base on the present moment so for example you might get some really good deals right now on EVS because the EVS aren't selling as well as they should and some dealers are giving some discount on vs
12:03
even Toyota is giving a huge discount on the bz forx but in 4 to five years time the Battery Technology is changing so much if you buy a EV right now based on present technology and if you keep it for five6 years it could almost be obsolete because technology would have
12:18
improved so much to the point that whatever we have right now in the current EVS are kind of meaningless so if you're going to keep the car for 10 years I wouldn't buy EVS right now but instead I would wait to a little bit longer so present doesn't dictate the future either so what do I mean by that well always look ahead if you're going
12:34
to keep a car for 10 years then think ahead and say in 10 years time what will happen to the market and that's a bit of a crystal ball predictions of course but we can make some simple predictions in the sense that the EVS will continue to evolve and therefore EVS will be the most difficult thing to buy right now if
12:51
we want to keep it for long term on the other hand if you buy a gas GLE or V8 power C now in five or six years it might be difficult to sell because most people might not want to spend a lot of money for fuel so those are some important factors to keep in mind I mean in terms of my own personal suggestions
13:06
I will hold off on the EVS for now if you're going to keep it for long term because the technolog is changing I also wouldn't buy a really oldfashioned technology like U very large displacement V8 power card unless you want to keep it for 20 years because again they might be very difficult to
13:22
sett down the road if you're looking through my channel you kind of will know which cars are really popular and which ones are hot and they tend to move in the right Direction so if you buy something like Land Cruiser right now you know for a fact that in five or six years it will retain good value uh because the name plate is there and this
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particular model is in high demand with low volume of production so keep that in mind and try to predict into the future depending on how long you want to keep the car and so Focus your decision mostly about the future as opposed to the present or the past the eighth
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decision point is whether to buy a brand new car or used or Slightly Used Cars which includes demonstrators and demo models that's obviously all to do with pricing and your budget but keep in mind that because used cars are so expensive these days especially hybrids and Toyota
14:10
models that if you buy a two or threeyear old uh let's say Toyota ra for hybrid you're kind of better off to just wait a year or so and try to get a brand new R 4 maybe you have to come down in terms of trim levels but it's better to buy a cheaper brand new model than to
14:25
buy a more upscale used car right now just because the used car market is still pretty high and it's going to take a little bit longer for things to settle down so lately I've been telling people if you're going to buy a a 2-year-old let's say raffle hybrid with 40,000 kilm
14:41
or something like that you're better off to just wait a year put a deposit and buy the base model ra 4 hybrid brand new you get a full warranty and it's going to hold its value anyway so those are some of the things you have to keep in mind having said that at the end of the day used cars are always cheaper than
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new cars and they're many many good choices in the used car market so don't ignore that there's some really fascinating cars and of course sports cars convertibles and premium cars tend to depreciate a lot so you can get some really good deals if they're two or 3 years old just make sure that there's
15:12
some kind of extra warranty applied to the vehicle if it's a used car and I would kind of avoid buying car that's really old even though I do that from time to time just because they're handful and you have to be prepared to spend time and money fixing them and keeping them up to date so those are
15:28
things I wouldn't do it for a day-to-day driver uh but again think about the used car versus new car which one is right one for you right now I'm kind of leaning toward new cars just because the warranty is good and the used cars are very expensive the ninth Factor might surprise you and that is color why does
15:45
a color matter well for two reasons one is that it's safety related if you buy U bright colors like white yellows orange or actually any bright colors then the statistics show that there are as much as 10 to 20% less accidents with cars that have a brighter color so if you're very safety conscious then buy a
16:02
brighter color but second thing is that it affects the reso value quite a bit more than you think anything in terms of the top priority for colors such as white Silvers Grays and dark Grays maybe even blacks are generally speaking quite popular and therefore when you want to sell the car down the road it's easier
16:18
to sell with those kind of color but if you buy let's say a bright green or bright yellow or bright orange or maybe even purple which you find these days you're going to have a heck of a Time finding a buyer for them and even the dealership might not want to accept your car as a tradein because they know it's
16:35
going to be difficult to sell so unless you're prepared to keep a car for a very long time avoid strange odd colors that might only appeal to small percentage of buyers stick with the most popular colors which in North America once again are the Whites Silvers Grays dark Grays
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and then maybe even black that's actually quite popular as well and in the sports car actually red is acceptable but even for for car yellows oranges greens are not very popular and you're going to have a heck of a time in selling those so keep in mind the colors are subjective but you have to keep in
17:07
mind the resale value and of course some colors are safer than others so keep that in mind as well and finally some colors are easier to take care of than others so lighter colors like whites and Silvers are very easy to hide dirt and also other stuff that gets on the car so you don't have to watch those cars as
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often if you buy a block it shows everything it also has shows all the scratches so it's a lot more upkeep and that's something to keep in mind also interesting enough if you get into an accident actually some colors are more difficult to match for example Silvers and gr are really hard to match and
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therefore even if you take it to a reputable Body Shop you can actually see the unmatched paint because they can never quite match Silvers and gray so those are all the interesting factors to keep in mind but yes color does come into play in terms of deciding which C to buy think of those things the 10th
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and the final things to keep in mind is that I'm still surprised at how many people will buy a car without test driving or at least doing a proper test drive some people just put a deposit and buy a car without ever driving it other people take it for a five minute drive and they think they know the car and
18:11
those are some of the things that you should not compromise because once again until you drive it for let's say at least half an hour you just don't know whether the car is right for you and if you're comparing three or four different cars don't drive one car on one day and then drive the other car second day or
18:26
third day again you just won't be able to remember your body won't be able to remember exactly how the car felt so do all the test drives in the same day back to back Drive the ra for then the CRV then the Nissan Rogue and then you'll know exactly which one is the right one
18:42
for you and ask for at least half an hour of test drive time from a salesperson told them that it's a lot of money for you it's it's a huge investment and you want to make sure that you have the right car in hand uh so drive it for a long time do a back to back and also drive it from different
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environment like drivve it on a sunny day and maybe go and test drive again in on a rainy day or maybe even a snowy day so they can figure out whether you like the car under many different circumstances as opposed to one condition if you're able to let's say rent that car from a rental car or from
19:16
something like a turtle then yeah go and rent it out that's even better or maybe your friends have one see if you can borrow it and drive it for a couple of hours or a day that would be the best if you're looking at some of the more upscale models then sometime the dealership will let you take it overnight and that would be the best
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thing to do because you'll know for sure if you like it and sometime you don't notice a few things like oh I can't squeeze into my garage because it turned out to be much bigger than I thought so those are some of the things to keep in mind don't compromise the test drive make sure you drive it long enough make sure you drive different mots back to
19:48
back and if you can take it for overnight or for a couple of hours to drive and that will really really help you to decide so I hope this video was helpful I give you 10 things to consider in terms of so buying a new bottle or maybe even a used one and if you take these things to account one by one from
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1 to 10 you will likely make a good decision and there will be less chance of having a buy remorse because you would have gone through all the important factors and criteria that will get you the car that's right for you if you have some comments or question please let me know if you haven't done so yet give me a thumbs up and if you
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are not a subscriber I would truly appreciate if you can subscribe as well if you got more questions let me know until next video I'm signing off for now thank you so much oh