With so many amazing deals out there, how do you figure out which used car is the one for you? Here’s how:
Start with A Budget
If you’re paying cash, you’ll already know your upper limit, which includes registration, insurance, fuel, and possible repairs. But if you’re taking out a loan, then you should find an online auto loan calculator to work out the details. Ideally, get preapproved for a loan. Remember not to spend over 10% of your take-home pay on the monthly payments. Because you’ll need another 10% for insurance, fuel, and maintenance. Keep 10% of the price as a down payment and set the maximum tenure for three years.
Then Choose the Right Car
Work out why you need a car and how it will be used. Families need passenger and cargo space, safety, and plenty of charging ports. Business clients need a luxurious sedan. Those in remote locations need an all-wheel drive. Once you know the type of car you need, search for models and makes that are known for reliability and low ownership costs. Looking for a total cost of ownership will help. Search for those cars online on used car listings. Conduct some research on their prices on guides like Kelley Blue Book. Use details like year, make, model, options, mileage, and condition level to understand their price.
Research the Car
Once you find a couple of vehicles you’re considering, order their vehicle history report using their VIN from Carfax or AutoCheck. Check if it has a clean title, any accident history, odometer scams, number of owners, maintenance schedule, and other details. Speak to the seller on the phone and verify the information and see if there’s anything more that you should know. Once you’re convinced, test-drive the car and carry a detailed checklist of things to inspect. Hire a mechanic to inspect the vehicle you’re seriously considering and ask for a written report.
Buy the Car
Using all your research, negotiate a fair deal for the car. Walk away if the price isn’t fair. If it is, ensure all the paperwork like title, registration, financing, taxes, and fees are in order. Once financing is complete and you’ve checked the contract carefully, close the deal.
