How to Buy a Car
Finding and buying a perfect car is not an easy task. There are many decisions to make and factors to take into account, not to mention the rainbow of colours to choose from. The price, of course, has to be a deciding factor, as well as how often you drive the car. Whether you’re buying new or used, from a private seller or a car dealership, knowing what you want ahead of time and being able to walk away are two of the most important things you can do when buying a car. Read on for more information on how to buy a car.
In a Hurry? Edit
The best way to buy a car is to make a list of criteria, such as the age and appearance of the car you want. Decide on a budget and do research online to learn the true value of the vehicle(s) you’re interested in. Learn your credit score and get a loan if necessary. For advice on how to find your dream car, scroll down!
Part One of Three:
Doing Your Homework Edit
- Freedom of choice. You can buy the car of your dream vs. being limited to the cars that are available.
- Better financing. If you do decide to finance on a new car, your financing rates could be better than if you bought a used car.
- Getting new features. New cars are stocked with new cutting-edge features such as interactive touchscreens on the dashboard, additional sensors and reversing cameras.
- Knowing what you’re buying. When you buy new, you have an excellent idea of exactly what you’re getting; there shouldn’t be any uncertainty lurking the background about the car’s history.
- Spending more money. This one’s a no-brainer. You spend more money on a new car than you do on a used one.
- Immediate depreciation. As soon as you drive the car off the lot, it loses about 11%  of its value. This is informally called the “lemon effect.”
- Higher insurance costs. It’ll cost more to insure that brand new convertible.
- Ambiguous information for model year. Is the model you’re buying a workhorse or a defective wreck? You can’t really know until later on — sometimes much later on.
- Cost. Buying that car fresh off the lot sure can be expensive; buying a similar car from a classified listings can be drastically cheaper.
- Better insurance rates. Insurance companies know that drivers of used cars tend to be more cautious and price their insurance accordingly.
- Less depreciation. Your car will depreciate less if you buy used, because the initial depreciation was so drastic.
- Higher dealer markup. Dealers know that they can make a killing on used cars. Buying a used car usually means a significant dealer markup.
- Higher financing. It usually costs more to finance a used car.
- Higher/more maintenance. Used cars usually need to be maintained more often and for more money.
- Unknown mechanical and accident history. When you buy a used car, you don’t necessarily have any information on who drove it, how often it was serviced, or whether it got into significant accidents.