Are you shopping for your first used car? It may seem overwhelming, especially if you don’t know where to start, but rest assured that finding the right car doesn’t have to be a daunting task. From sticking to your budget to reviewing vehicle history reports, here are four tips to consider before you buy.
Plan Your Budget Accordingly
Used cars may seem like a cheaper option up front, but charges for license and registration, sales tax, insurance coverage, gas, and maintenance and repairs can quickly add up in the long run. Make sure your pre-approved car loan can cover the cost of these expenses along with the original sale price. You should also stick with a price your salary can back up. Payments should be at or less than 20 percent of your monthly income.
You can also help prepare yourself for future negotiations by comparing model prices online. Stick to a budget, but be reasonable. Perform enough research to arrive at the dealership feeling confident. Don’t be afraid to reject an offer if the deal isn’t going in the direction you want.
Consider a Certified Pre-Owned Vehicle
Investing in a Certified Pre-Owned (CPO) model could be worthwhile if you don’t mind paying a bit extra for factory certification and a warranty that extends past the dealership and manufacturer’s initial coverage. Additionally, cars that wear this label are typically less than five years old, have been reconditioned and thoroughly inspected for quality, have fewer miles on them, and don’t have a history of significant damage.
These qualities make CPO vehicles a considerable choice, especially since you can take advantage of services such as free maintenance, 24/7 roadside assistance, and travel reimbursement for covered repairs, all while avoiding new-car depreciation.
Perform a Vehicle History Check and Inspection
Let’s say you aren’t buying from a trusted acquaintance or a CPO model that’s already undergone a thorough inspection. How can you be sure the car is up to your standard of quality? This is where a vehicle history report comes in handy. Companies such as Carfax and AutoCheck use the model’s vehicle identification number to pull up records of maintenance and repairs, lease and rental history, odometer fraud, safety recalls, and theft and accident reports.
Test-driving the car is another way to check its condition. Ask the seller first if you can take it out for a spin and make sure all components are running smoothly. If you notice a snag with acceleration or braking or you hear weird or unusual sounds, this is likely an indicator of a faulty part. You can also opt to get an inspection from a trusted mechanic. They’ll perform a thorough check and inform you of any pending maintenance.
Carefully Review the Final Details
Whether you’re buying a used car from a dealership or an independent seller, make sure the vehicle’s title (or pink slip) and registration are signed over to you and that you’ve added the car to your insurance policy. Don’t rush through reading the sales contract, either. Calm your feelings of anxiousness so you don’t miss out on anything important.
Don’t get stressed shopping for your first used car. Follow these tips to plan for a successful buy.
“used car lot” via Flickr by Foot Slogger. Used with permission via CC BY-ND 2.0 / cropped from original
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