Step 1. Set your price range and figure out your financing
This is a great jumping off point. You will need to look at your savings to figure out if you can afford to buy a car outright or whether you need to get a loan. If you have money saved up, you will need to make some important decisions about how much of it you want to use when you buy your used car. Only you can make the right decision, but keep in mind that it may not be the best idea to clean out your entire account to make your purchase. If you don’t have enough money in savings and you need a loan to buy a used car, a lender will determine how much you can afford based on your income, your savings and your expenses. When getting a loan, regardless of how much the lender approves you for, be sure the monthly payments fit into your personal budget and that you understand what will be expected of you over the life of the loan.
Step 2. Determine what kind of car you want
This requires some major decisions on your part, so you’ll need to weigh out the pros and cons of different cars and determine which is best for your finances and your lifestyle. If you cart around your kids in carpools or if you haul a lot of stuff to and from work, a small sports car might not be best for you. Or if you don’t make a lot of money and you have to drive long distances, a large, gas guzzling SUV might not be a good choice. Consider also maintenance costs and consumer satisfaction publications to help you make the right decision when buying a used car.
Step 3. Search for used cars
If you have decided to buy a used car from an individual, you have a few options for finding cars for sale. One of the best resources can be your local newspaper’s classified ads. You may also be able to find used cars for sale by individuals in publications sold by gas stations and car accessory stores. Individuals can submit short descriptions of their cars, along with photos so that you can pick and choose which cars you are interested in. The internet can be another great source for finding used cars for sale by individuals. There are a number of websites that allow people to post their used cars and you can usually refine your search by area.
Step 4. Inspect the exterior and interior
This is a critical step to finding problems with a used car. Check out the exterior of the car and look for dents, scratches and inconsistencies with the paint. Also be sure that the bumpers fit nicely on the body of the car. Once you get in the car, be sure the doors and windows open and close easily and completely. Also check the headlights, brake lights, windshield wipers, air conditioning and heating system, as well as the upholstery. Though you may not be a mechanic, finding problems and inconsistencies can help you narrow your car search or negotiate a lower price on a used car.
Step 5. Go for a test drive
In an ideal situation, you would be able to take a test drive in all kinds of driving conditions, including rain, sleet and snow, as well stop-and-go traffic and interstate conditions. Since you probably only have a small window of time to make an offer on a used car, you won’t be able to accomplish all of the possible driving conditions. Instead, make an attempt to drive the car in town, as well as on the highway. You may also want to see how the car starts after it has been parked for the night. The ultimate goal of the test drive is to help you determine whether you are comfortable with a car’s size and operating systems.
Step 6. Have your mechanic check it out
If you are happy with your own inspection of a car, the next step is to get it checked out by a mechanic that you choose. A professional should be able to tell you about maintenance and check for any repairs that may need to made. Your mechanic’s advice can be the deciding factor as to whether you make an offer on a used car.
Step 7. Negotiate the price
If your mechanic finds that everything is in good working order in a used car, you may feel comfortable offering the seller his or her asking price. Or you may feel like you can negotiate a better price based on your research and some problems with the car. Regardless of what you decide, it is important that you can stay within your price range so that you don’t wreck your monthly budget.
Step 8. Take care of your documents
Make sure you update the car’s essential documents when the sale is completed. You will need to contact your car insurance company, as well make changes regarding taxes, titles and tags. Your local Department of Transportation should be able to give you all of the information you need to make the appropriate changes.
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