Buying a used car can be a smart financial move, but making an impulse buy could mean you end up with a lemon. Whether you’re heading to the dealership or buying from a private seller, arming yourself with knowledge and resources will help you make the most informed decision.
Here are the Top 5 Things You Need To Consider Before Buying Used Car.
1. Define what you want and do your research.
Before anything else, take some time to write down what you
want from a car: How many people does it need to sit? Would you like it to be
small or large? Are there certain features that you feel you can’t live
without?
Then research which cars fit your description and what their
prices are – Kelley Blue Book is a great resource for that. Walking into the
dealership just to browse can prevent you from really finding the best deals
because you may be pressured into the sale by a highly trained salesperson.
Before you ever set foot on a lot, look at classified ads and print out
information on cars from different dealerships so that you have a better idea
of what is available and what you should expect to pay for similar vehicles in
your area.
2. Set your budget.
Don’t let a pushy salesperson persuade you to extend your
budget just to get the vehicle you want. Setting a price range for yourself can
also help you narrow your search and negotiate a price you are truly
comfortable with. When you talk with the seller, be firm with your budget
range, but don’t share your target price until the dealer or seller makes an
offer – not revealing the number gives you more negotiating power. And
remember, a used car budget shouldn’t just include funds for the car, but also
money for an inspection and to cover any small repairs that may be necessary.
3. Consider all of your financing options.
If you aren’t planning to buy the car with cash, consider
financing options beyond the dealership. You may be able to get a great rate on
an auto loan through a credit union, for example. Try to get rate quotes from a
few places, and talk to each potential lender about the types of cars and price
range you are working with.
4. Get the car inspected.
Having the vehicle inspected by a trustworthy mechanic needs
to be part of the buying process. You can run a basic visual check of the
engine and frame on your own, but you will still need a mechanic to take a look
under the car and run some basic tests. Even if the seller insists there are no
mechanical defects or major issues, you should verify that the car is in good
shape with a comprehensive inspection – after all, the seller is getting rid of
the car for a reason.
5. Be prepared to walk away.
Don’t walk into the sale with the intent of purchasing the
car that day. Being too eager to make the purchase can put you in a position to
accept an offer you’re not truly comfortable with or settle for something that
may cause more problems down the road. No matter how good the deal seems, be
prepared to shop around so you aren’t pressured into buying a vehicle that may
not be the right match for you.
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