When you buy a car for the first time, it is a very big decision. There are so many choices that you can make and it's hard to know what the right choice is. Since this is your first car, it is probably going to be a used car. These are certainly more affordable cars, but you need to make sure that your used car functions properly and is safe to drive. Otherwise, you'll just be wasting your hard-earned money. So, spend a little time learning the process of buying a used car and your first experience won't be so bad.
6 Simple Steps to Successfully Buy a Used Car
1) Pick the Proper Car – Go to multiple used car dealerships and browse through the different used cars they have available. If you can prepare a list of used cars off the internet first, that will be even better. That way, you'll know all the models that you're interested in and their features. Choose a car that is in good condition, priced within your budget, and has mileage that you're okay with.
2) Research Vehicle – Once you find a vehicle that you might want to buy, go research its history. You can obtain a vehicle history report at numerous car dealerships or on the internet if you know the VIN. This will tell you about the previous owners and any situations that happened with the car.
3) Obtain Financing – You have a variety of options for financing the purchase of your used car. Dealerships will usually provide you with information about these financing options and help arrange the financing for you. Alternatively, you can seek a line of credit from a credit company or bank. Some consumers will take this step first because they already have pre-approval from a particular financial company for enough money to buy the car with.
4) Price Negotiation – You have negotiation power as a consumer. If you have researched the pricing guidelines and market values of cars beforehand, you will know how to negotiate a fair price with the car salesperson.
5) Close the Purchase Deal – After a price has been agreed upon, the next step is to close the deal. This will involve signing numerous contracts and other documents. You will also need to purchase an insurance policy for your vehicle and obtain temporary tags for it. All of this can be done at the car dealership. When this is done, you will be the new owner of the vehicle.
6) Extended Warranty Option – Car dealerships are notorious for offering extended warranties on their vehicles. Since you're buying a used car, it might be a good idea to purchase an extended warranty that covers the cost of repairs in case the vehicle breaks down. The cost of this extended warranty typically gets added onto the monthly car payments. Therefore, your financing will cover the initial purchase of the extended warranty.
These steps should help you get started with your car purchase. There are always things to learn about this process which are not mentioned here. However, you now have information about the various tools and resources that are readily available to you. Go ahead and use them.