Looking for a new car? Despite the proliferation of public transportation and the growing popularity of biking, for many of us, a car is still a necessity. While we all love shiny new cars and that new car smell, with the economy not as strong as it could be, making every dollar count and the budget stretch is more important than ever. Buying a used car can help you do just that and be a smart financial decision. Used cars (also known as €pre-owned€) have come a long way. Gone are the days when buying a used car meant getting a junker from a shady salesman. Today you can buy used cars that look just like new, and the internet has provided new ways to find the perfect one for you. As always though, buyer beware, that great deal on Craigslist or one of the other sites you can go car shopping on may not be so great. It's important to do your homework before handing over your hard earned cash. Read on to learn more about buying a used car.
Budget
Before you do anything else, sit down and figure out your budget. Remember to include insurance, excise tax and registration fees. If you have money saved for a down payment, great! The more you can put down the better. Have enough to buy outright? Even better! If you'll be getting financing, pull your credit report to make sure everything looks as it should. Even a small error could get you denied or a much higher interest rate than you deserve. Once you've got a budget, stick to it. Don't be tempted to splurge, because once the monthly payments start you'll probably regret it.
Research
Research is extremely important with used cars. Get the VIN number and use a service like CarFax to check out the car's history. Some less than ethical sellers will try to sell cars that have been totaled in accidents. These cars often have frame damage with drastically reduces their safety. All vehicles with these types of hidden defects should be avoided. If the seller is evasive when answering questions, that's another red flag. Run, don't walk away!
Purchase Options
Today you can go shopping online as well as at dealerships. Online shopping lets you research a lot of cars without having to drive all over town or beyond. Take a look at this for an example. This saves you time and gas. The old tried and true method of looking at the classifieds of your local newspaper is still viable too, but you have the choice of buying a paper of going to the paper's website. Online shopping lets you look at cars located quite a distance away, so if you fall in love with one, be sure you're up to the challenge of dealing with out of state titles. Check with your local DMV for your areas rules and regulations on out of state sales.
Pitfalls
Like any big purchase, buying a car can have its pitfalls. This is especially true if you're buying from a private buyer and/or online. If the site offers seller feedback ratings, read them carefully. Bring a mechanic or mechanically minded trusted friend with you to inspect the vehicle, and ask for the VIN and to see the title. If the seller claims there is no VIN or it's been scratched off, walk away. Missing VINs are a strong sign that the car is stolen. Remember, if it seems too good to be true, it probably is!
Budget
Before you do anything else, sit down and figure out your budget. Remember to include insurance, excise tax and registration fees. If you have money saved for a down payment, great! The more you can put down the better. Have enough to buy outright? Even better! If you'll be getting financing, pull your credit report to make sure everything looks as it should. Even a small error could get you denied or a much higher interest rate than you deserve. Once you've got a budget, stick to it. Don't be tempted to splurge, because once the monthly payments start you'll probably regret it.
Research
Research is extremely important with used cars. Get the VIN number and use a service like CarFax to check out the car's history. Some less than ethical sellers will try to sell cars that have been totaled in accidents. These cars often have frame damage with drastically reduces their safety. All vehicles with these types of hidden defects should be avoided. If the seller is evasive when answering questions, that's another red flag. Run, don't walk away!
Purchase Options
Today you can go shopping online as well as at dealerships. Online shopping lets you research a lot of cars without having to drive all over town or beyond. Take a look at this for an example. This saves you time and gas. The old tried and true method of looking at the classifieds of your local newspaper is still viable too, but you have the choice of buying a paper of going to the paper's website. Online shopping lets you look at cars located quite a distance away, so if you fall in love with one, be sure you're up to the challenge of dealing with out of state titles. Check with your local DMV for your areas rules and regulations on out of state sales.
Pitfalls
Like any big purchase, buying a car can have its pitfalls. This is especially true if you're buying from a private buyer and/or online. If the site offers seller feedback ratings, read them carefully. Bring a mechanic or mechanically minded trusted friend with you to inspect the vehicle, and ask for the VIN and to see the title. If the seller claims there is no VIN or it's been scratched off, walk away. Missing VINs are a strong sign that the car is stolen. Remember, if it seems too good to be true, it probably is!
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