Buying Used is a Good Decision
New cars may be tempting with all their shiny features and new car smell, but they come with a hefty price tag. In fact, new cars are becoming increasingly more expensive every year.
If you’re looking to save money, buying a used car is the way to go. By purchasing a certified pre-owned vehicle or a used car from a private party, you’re able to let someone else take the depreciation hit.
We believe you can get a much better deal on a car that’s just a little bit older than a brand new one. We think the used car advice below shows that.
Table of contents
Setting a Budget
The first step in buying a used car is to set a budget. If you’re taking out a loan, make sure to shop around for the best interest rate and choose a loan that fits your budget.
This will help you narrow down your options and avoid overspending. There are a few things to consider when setting your budget:
- Your monthly car payment: This should be based on your monthly income and other expenses.
- The down payment: You will need to put down at least a portion of the purchase price of the car.
- The cost of insurance: This will vary depending on the type of car you buy and your driving record.
- The cost of registration and taxes: These are one-time costs that will need to be paid when you buy the car.
Choosing Between Cash or a Loan
Once you have set a budget, you need to decide if you will be buying the car with cash or taking out a loan. If you have the cash, buying with cash is the best option. This will save you money on interest and allow you to avoid monthly car payments. However, not everyone has the cash to buy a car outright. If you need to take out a loan, there are a few things to consider:
- The interest rate: The interest rate on the loan will affect your monthly payment.
- The loan term: The longer the loan term, the lower your monthly payment will be. However, you will pay more interest over the life of the loan.
- The down payment: The larger the down payment, the lower your monthly payment will be.
Researching and Choosing the Right Car
Once you have decided how you will be financing the car, you need to start researching and choosing the right car.
When it comes to buying a used car, this part is key. Take the time to research different car models and their reliability ratings.
You should also consider the car’s history, including any accidents or previous owners.
There are a few things to consider when choosing a used car:
- The make and model: You need to decide which make and model of car you want.
- The year: You need to decide which year of car you want.
- The mileage: You need to decide how many miles you are willing to accept.
- The condition: You need to decide how much wear and tear you are willing to accept.
Finding Cars Online
The internet has made it easier than ever to find used cars, but it’s important to know what to look for. Make sure to follow a step-by-step process to identify any potential red flags. You should also check the car’s full history report and ask the seller specific questions to ensure you’re getting a good deal.
Inspecting and Test Driving the Car
Once you have found a car that you are interested in, you need to inspect it and test drive it. Inspecting the car will help you identify any potential problems.
Even if you don’t know a lot about cars, test driving the car will help you see how it handles and if it is comfortable for you to drive.
Take the time to inspect the car thoroughly and to see how it feels on the road.
Negotiating the Price and Paperwork
Once you’ve found a car you like, it’s time to negotiate the price and complete the necessary paperwork.
The price of the car will depend on the make and model, the year, the mileage, and the condition. You should start by offering a price that is lower than the asking price.
The seller may counter with a higher price. You should continue to negotiate until you reach a price that you are both comfortable with.
Make sure to negotiate in a fast and safe manner and get all necessary paperwork.
This paperwork typically include the sales contract (or bill of sale), the title, and any other necessary paperwork.
Uncommon Advice on Buying Used Cars
There are things to watch out for that may not be visible on first glance. I wanted to buy a Lexus that was two hours away. It was listed by a small dealer and the price was right.
So I purchased over the phone and then they had someone drive the car down. When the car got here, there were swirls in the paint that were not visible on the pictures.
Everything else was perfect on the car so I went ahead at the agreed price. I then did some extensive waxing of the car after having it clayed. This made the swirls much less noticeable. Over time, it continued to look better.
The main point is if you purchase strictly online, it’s a good idea to see the car in person — and have a provision in a agreement that if the car is not as described, you can change your mind when you see it in person.
That also goes for anything you might discover late in the process such as problems in the vehicle history, the title status or if any maintenance was neglected.
Check back with our site for when we post the common red flags to watch for.
Buying Used Cars: A Checklist
Here’s a summary of the things to do before you buy a used car.
- Set a budget.
- Choose between cash or a loan.
- Research and choose the right car.
- Inspect and test drive the car.
- Negotiate the price.
- Sign the paperwork.
By following the used car buying advice, you can be sure that you are buying the vehicle that is right for you.
Our Concluding Advice on Buying a Used Car
Buying a used car can be a great way to save money, but it’s important to take the time to research and choose the right car.
By following these steps above , you can make a smart purchase and avoid any potential red flags or costly mistakes.
And remember, don’t be afraid to ask for help or advice from friends or family who have experience buying used cars especially for a similar car to what you are considering.
