Buying a car Tips to remember

Buying a Used Car  Step 1: Starting out -- Why buy used?  Get a car that is as a good as a new, without the depreciation value  1 year old car is almost 20-30% cheaper  Save $ on insurance  Used cars better than previous used cars  Some still have factory warranty  History of car can be traced

Budgeting a Car  May know what kind of car you want, does it fit your budget?  Does this car fit my current needs?  Consider building a target list of three different cars  Toyota Camry, Honda Accord, Nissan Altima, Chevy Mailbu  Built for same market, but have some different features, may have lower price

Buy 2 nd tier car  The value of a used car is based on its condition, mileage, reliability, performance and popularity  Do you want the same car as everyone?  2-year-old Camrys and Accords were about $3,000 more than comparable 626s and Galants

Research your prospective used car.  Make sure you run a vehicle history report on any used car you are considering buying.  Carfax and AutoCheck CarfaxAutoCheck  These reports can reveal vital information about the used car, including whether it has a salvage title (it has been declared a total loss by the insurance company) or if the odometer has been rolled back  inspect the vehicle to determine its condition (buy a certified used car)

How much can you afford? Monthly payments Down payment Purchase price of the car

Set up financing for your used car.  Cash  Financing through a bank, online lender or credit union (usually the best price and you can control the transaction  Financing through the dealer (may work some people depending on credit and interest rate offered)

Where to shop for your used car  Four most common places:  Private parties (usually have best prices)  The used car section of new car dealerships  Dealers got the cars for a good price, you may be able to get a good deal on it  Independent used car lots  Internet

Making an appt. with a seller  While talking to the seller, set up an appointment for a test-drive. If possible, make this appointment during the day so you can see the car in the daylight and more accurately determine its condition. Also, ask for the VIN so you can run a vehicle history report.

Test driving a car  Once you get behind the wheel, ask yourself if it is a good fit. Does it offer enough headroom? Legroom? Are the gauges and controls conveniently positioned?  start the engine when it is completely cold  Some are harder to start when cold and will reveal any chronic problems  Turn off the radio – you want to hear the engine  Drive in areas you normally drive (highway, in town, etc.)

Test driving a car (cont.)  Look for these things:  Acceleration from a stop  Visibility (Check for blind spots)  Engine noise  Passing acceleration (Does it downshift quickly and smoothly?)  Hill-climbing power  Braking  Cornering  Suspension (How does it ride?)  Rattles and squeaks  Cargo space

Negotiating for a used car  Be comfortable with your salesperson  Make a low offer, but in the ballpark  Decide ahead of time how high you will go and leave when you reach it  Walk out: strongest negotiating tool  Be patient: plan on at least an hour there  Leave if you are tired or hungry

Closing the deal  At a dealership, you still have to go through the finance and insurance (F&I) process.  private party, you just have to make sure that payment is made and the title and registration are properly transferred.  make sure you have insurance for the car you just bought before you drive it away

The extras  F&I person will probably try to sell you a number of additional items: an extended warranty, alarms or anti-theft services such as LoJack, prepaid service plans, fabric protection, rust-proofing and emergency roadside kits.  Decide ahead of time if this is something you want  If you don’t, don’t let them talk you into it

Before you leave…  Read over the contract (make sure there are no sudden additions)  if any repair work is required and has been promised by the dealer, get it in writing in a "Due Bill." Make sure the temporary registration has been put in the proper place and you're finally on your way.  Private Party: ask for the pink slip and have it signed over to you  steps-to-buying-a-used-car-pg10.html