Be Realistic with Your Budget
Don’t spend more than 10% of your take-home pay on car payments. Because you’ll need another 7% on insurance, fuel, and maintenance.
Choose the Right Car
Don’t buy the car you want; buy the car you need. Assess what jobs the car will perform and pick one that’s suited to the role. Any desirable options can only be considered if the primary needs are met.
Find the Used Car’s Value
Whether you’re buying from a dealer, private party, online, or a certified pre-owned vehicle, you should be able to find its average price based on make, model, age, mileage, and condition online. Do your research.
Talk to The Seller
Before you head out, call the seller and learn all you can about the car. Ask to examine maintenance records, and only if everything is in order, should you head out to see the vehicle in person.
Vet the Car
Vehicle titles are the most important form of consumer protection. Get the car’s VIN yourself and get a history and safety report on the car. It’ll help avoid scams.
Inspect the Car
When you see the car, take as much time as you like conducting a thorough inspection. Check the exterior, interior, tires, if the radiator fluid is foamy, check around the gas tank for mud and leaves (signs of a flood), and anything else you can think of.
Test-Drive the Car
Examine the ergonomics, seat comfort, dashboard lights, features, engine noise, vibrations, ride quality, brakes, smells, other sounds, and the overall condition of the car on your test-drive.
Hire a Professional
If you still like the car, hire a professional mechanic to inspect the vehicle and prepare a detailed report for you. If required by law, take it to the DMV for inspection. Get everything in writing.
Negotiate and Close
Private party cars tend to be much cheaper than dealer cars or certified pre-owned cars. Use all that you have learned about the car to bring down the asking price to one you believe is fair. Once you’re satisfied, ensure you read all the paperwork, complete all the formalities, and once the financing is confirmed, drive your car home.
