8 Steps to Buying a Used Car
Step 1: New Or Used
Decide whether you should buy a new or used car. Consider some of the benefits for buying a pre-owned car:
- Buying a used car is less expensive than buying new - Used cars are 20 to 30 percent cheaper than new cars.
- Used car buyers don't suffer the same depreciation that new car buyers experience.
- Insurance costs are lower for used vehicles.
- Used cars are more reliable today than ever before.
- Some used cars are still under the factory warranty.
- Certified preowned cars include a warranty.
- The history of a used car can easily be traced using the VIN number.
- Financing rates for used cars have dropped in recent years.
With a used car you may not have the latest and greatest technology, but you will know that you got a great deal and made a smart buying decision.
Step 2: Find the right car or truck
Consider what activities you will need to perform with your used car. Ask yourself the following questions and that should help you decide what used car is right for you.
- How will you use the car or truck? Personal use, business use, recreation, or other?
- How will the car or truck fit your lifestyle?
- How many passengers will you need to carry? Will this number change in the near future?
- What type of terrain and roads will you encounter: highway, city, off-road, or all of the above?
- Will you need to pull a trailer?
- What are your cargo space needs?
- What type of performance level is required?
- What type of fuel economy is required?
- Do you want manual or automatic transmission?
- What do you like about your present vehicle?
- What options are a must?
Step 3: Used Car Bargains
The cost of a used car is based on its condition, mileage, reliability, performance and popularity. Of course, you want a car that is reliable and performs well. But do you want the same used car everyone else wants?
many cars are known for their performance and reliability but some vehicles are more popular than others. Find out if the model that you are interested in is one of the more popular models and consider if it might be cheaper to buy a different model that might be less popular and at a lower cost.
Step 4: Research the used car
Our website will provide you with all of the vehicle information that will help you decide if the car you have chosen is the right car for you. Consider price, standard features, specs and safety, warranties, photos and resale values to make an informed buying decision.
A good way to research a used vehicle is to run a vehicle history report on the used car you are considering to buy. Several companies sell these reports, which are based on the vehicle identification number (VIN). You will find out the vital information about the used car including whether or not it has a salvage title (it has been declared a total loss by the insurance company) or evidence to reveal if the odometer has been rolled back. This is also the time to decide if you want a Certified Used Car.
Step 5: What is your budget?
Deciding how much you are able to spend at the beginning of your car shopping experience, you will avoid unpleasant surprises and purchase a car that fits your budget. You will need to estimate three figures that will guide you as you go shopping:
- Monthly payment. If you are going to take out a loan, how much can you afford to pay each month?
- Down payment. How much cash can you put down to reduce your monthly payments?
- Purchase price of the car. Answering the first two questions will help you determine a realistic price range for your used car. Try using our payment calculator to determine these figures.
Once you've determined how much you can spend for a down payment, a monthly payment and the purchase price of the car, you will have a better idea of what your budget should be and it will help you choose a car that is the right price for you.
Step 6: Getting a loan for your used car
You have three ways to pay for your used car:
- Cash. If you have the cash available you will save on interest but may lose on opportunity costs
- Financing through a bank or credit union. Depending on your bank you may or may not get a competitive interest rate.
- Financing through the dealer. This can work for to your advantage depending on your credit scores and the current interest rates offered.
Step 7: Test Drive a Used Vehicle
Since you are buying a used vehicle you will want to inspect the vehicle thoroughly to determine its condition. This is less necessary if you buy a certified used car that has passed a thorough inspection and is backed by a manufacturer's warranty. Buying a certified used car removes a lot of the guesswork about the vehicle's mechanical condition. If you are serious about buying a used car but have doubts about its condition, take it to a mechanic you trust. If it is a certified used car, there is no need to take it to a mechanic.
During the test drive consider the following:
- Does the car offer enough headroom?
- Does the car offer enough legroom?
- Does the car accelerate well?
- Do you have good visibility to see the road?
- Does the engine make too much noise?
- Do the brakes work well?
- Does the car take turns well?
- Are the gauges and controls conveniently positioned?
- Does the ride feel comfortable? Are there any strange noises, rattles or squeaks?
Step 8: Buy a Used Vehicle
By this time you have decided the the pre-owned vehicle that you have selected fits your lifestyle and automotive needs. The vehicle fits the budget that you can afford, you enjoy driving the car or truck, and you are confident that the car or truck is in good condition. The only thing left now is to buy the preowned vehicle.
You will need to make sure you have insurance for the car you just bought before you drive it away. If you are not buying a certified preowned car or truck, you may want to consider purchasing an extended warranty, unless your used car is still under the manufacturer's warranty.
Once you have finished the paperwork, the pre-owned vehicle is yours to keep. You can finally relax and enjoy driving your vehicle.
