Most of us will make the choice to buy a vehicle at some point. Whether it is for ourselves as a second vehicle or maybe for our children. In this article, you will find a list of tips to help you make that decision a little easier.
- First, you always want to know what you can afford to spend on the vehicle. Set a budget, and stick to it. A general guideline is to budget at the most 25% of your monthly household income on this type of purchase. This figure should include your monthly payment, fuel, insurance and maintenance. Used vehicles will need a little attention from time to time, so it may be wise to set aside a rainy day fund to help cover the cost.
- Look at the cars that are available, and do your research. With the multitude of makes, models and body styles available today you need to look at the best type of used vehicle for you. Think about fuel economy, storage capacity, seating capacity, interior quality, exterior quality and mechanical quality. Look at the dealership websites to see what they have available. On allusedauto.com, we put hundreds of used cars from dealerships nationwide at your fingertips. You can research not only pricing, but availability, distance from your home and even the dealerships themselves. If you are looking for a vehicle less than 5 years old, consider buying Certified pre owned. Many still may have the remaining manufacturer’s warranties as well as some from the dealership.
- Check the competitors pricing for the same vehicle. There are several ways to look for used vehicles: the dealership’s website, Independent dealerships, Used Car retailers and the private seller. Note that lower prices are usually found through private sellers while Certified Pre owned are only available through dealerships and will cost a little extra.
- Once you find the car you want, the next is to research the vehicle itself. Get the Carfax report; this will show you the maintenance record and if the vehicle has sustained any major damage. Most dealerships will offer a free Carfax report for most used vehicles on their lot. You can deal with any recalls on the vehicle that may need to be taken care of.
- Arrange financing before you go to purchase the vehicle. This way dealerships will try to compete to get you a better interest rate and maybe bring the payments down. If you chose a private seller, having the money readily available helps to make the purchase smoother.
- Next, talk to friends and family about the dealerships in your area. Find out if they have had good experience or bad with any of the dealerships. If the experience was bad, you can see if the dealership did anything to make it better. Once you find the dealership that has the car you want, it is time to go to the lot.
- Call the seller first to ask questions about the car that may not have been in the advertisement or on the site. With a private party seller, you can see why they are getting rid of the vehicle. They may even give you more information than what you saw online. Wait until you see the vehicle before going into negotiations. Two things that you should inquire about are: the asking price and whether the vehicle has a clean title. Edmunds.com has a questionnaire that may be very helpful. Here is the link to the questionnaire https://static.ed.edmunds-media.com/unversioned/img/car-buying/used-car-worksheet/used.car.questionairre.pdf. If you don’t feel comfortable with the seller or the answers to questions, then you may want to look somewhere else.
- Ready for the test drive. Never take someone else’s word on how the car handles. Get behind the wheel and see for yourself. Does it rattle or pull to the left or right? Does it accelerate well, do the brakes press all the way down or are they stiff? Do the tires look in good shape or is there a bulge on the sidewall, and is there missing or minimal tread? Do the heat and the AC work? Do the windows stick? Has the oil been changed or is it dark? Oil is transparent and a light golden color typically. These plus many other questions are best answered by your observation of the vehicle. You may even consider having the car inspected at a repair shop you trust.
- Now it is time to negotiate. Remember in the first tips you have a budget. Stick to that figure. Do not let anyone pressure you into purchasing additional things that you don’t need. A good thing to consider in purchasing a used car is GAP insurance. This will help if something happens to the vehicle that cannot be repaired.
- Get the paperwork done. Make sure if you are at a dealership to read the contract thoroughly, and ask any questions that arise. If you are purchasing through a private seller, make sure they have the title and that they sign it over before you give them any money. Also make sure that you have contacted your insurance company prior to purchasing. It is always a good idea to have the acknowledgement from your insurance regarding the vehicle especially if you purchase it over the weekend. This way they know that you are buying a vehicle and they have the information to prepare the insurance for you.
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