Owning a car brings fabulous freedom but also tremendous responsibility. Be ready for significant expenses beyond the purchase price: You’re also on the hook for, fuel, maintenance, repairs, insurance, and taxes. Here we lay out some strategies for getting behind the wheel as painlessly as possible.
Important: Once you have completed this page, I would ask that you please take the post-test so I may evaluate how much improvement was made through the completion of this module. I would also ask that you please take the feedback survey below, don't worry their is no personal information being collected or saved.
Inspect and Test Drive -- New cars are presumed to be consistent performers. (For example, each new Honda Civic is expected to drive like any other.) A casual inspection can confirm the car is truly in “new” condition. However, with a used car, every example has led a different life. Some may have been pampered, others abused, potentially by a teenager! The best used cars tend to be owned by a trusted friend or family member who can share details of the car’s history.
When shopping used, try to bring a car-savvy person along . Carefully look the car over inside and out, top to bottom. New or used, always inspect during daylight hours when paint flaws that may indicate repairs or other troubles can be readily spotted. Essentially, you’re looking to ensure the car is in the condition claimed by the seller.
For used cars, the real trick is having the car inspected by a professional mechanic. They will usually charge for the service, but it can be money very well spent.
Negotiate like a pro -- If the car looks good, then it's time to talk numbers. When negotiating a car purchase, it is essential to have another experienced adult to assist. A professional car salesperson knows all sorts of ways to push people into buying just about anything for the highest possible price. That is, after all, their job. As charming as salespeople can be, remember that they aren’t really your friend, you are merely just a paycheck. Most car shoppers are outmatched during that phase of car buying.
If you’re buying from a private seller, negotiation is more straightforward. Research online what the current wholesale price is for the car based on its condition, mileage, and location—that is your target. Closer the better, and bonus points are awarded for getting an even better deal.
A used-car lot or dealership will focus on the retail price, again easily found online.Chances are, they bought the car for much less, up to $3,000 to $6,000 less, taking it as a trade-in or picking it up at a wholesale auction. They need to make a profit, of course, but your attitude should be that their most profitable deal of the day isn’t going to come out of your skin. The goal remains to get as close to the wholesale price as feasible, though in reality, you’ll probably end up in between the two figures.
If financing, pre-arrange a loan so that you know what the interest rate and loan term will be. If the dealership can beat what you arranged for yourself, great. If not, then you’re still covered. You can use an online calculator to figure out what your payments would be, based on the expected purchase price and down payment.
The salesperson will probably focus on monthly payments, as that enables them to sneak in added profit by stretching out the term of the loan. Monthly payments may look enticingly low but you’ll be paying those for a long, long time. When comparing one loan deal with another, add up the total of all the monthly payments. Because you did your homework, you can focus on the total amount, rather than just the monthly payments.
Negotiate one element of the deal at a time, establishing the purchase price, then moving on to discussing financing, if interested. Don’t be talked into extras, such as rust-proofing, fabric protector, or even an extended warranty. They aren’t necessary. You’re smarter than that, as proven by the effort put in to find a good, safe, reliable car.
If the seller won’t meet what you would consider a fair price, walk away. Every year, something like 40 million used cars change hands. Rest assured, there are plenty of other cars out there from which to choose. Getting a good deal on the right car can take a lot of patience and persistence but the reward—freedom and mobility—is worth the effort.
Must-have safety features -- Whether buying new or used, these are the features you want:
Antilock brake system (ABS): Readily available, antilock brakes prevent the wheels from stopping completely during hard braking. Because the wheels do not lock up, even during emergency braking on slippery surfaces, they enable the driver to retain steering control.
Electronic stability control (ESC): This feature prevents a car from sliding sideways, such as when going through a turn a bit too fast for the conditions. ESC can be especially welcome in bad weather. All new passenger now have ESC and have for several years. On older cars, ESC may have been optional. Make sure the specific used car you’re buying has it.
Head-protecting side airbags: Side and side-curtain airbags have been shown to provide real protection in a side impact, such as when T-boned by another car crossing an intersection.
Important: Once you have completed this page, I would ask that you please take the post-test so I may evaluate how much improvement was made through the completion of this module. I would also ask that you please take the feedback survey below, don't worry their is no personal information being collected or saved.
Inspect and Test Drive -- New cars are presumed to be consistent performers. (For example, each new Honda Civic is expected to drive like any other.) A casual inspection can confirm the car is truly in “new” condition. However, with a used car, every example has led a different life. Some may have been pampered, others abused, potentially by a teenager! The best used cars tend to be owned by a trusted friend or family member who can share details of the car’s history.
When shopping used, try to bring a car-savvy person along . Carefully look the car over inside and out, top to bottom. New or used, always inspect during daylight hours when paint flaws that may indicate repairs or other troubles can be readily spotted. Essentially, you’re looking to ensure the car is in the condition claimed by the seller.
For used cars, the real trick is having the car inspected by a professional mechanic. They will usually charge for the service, but it can be money very well spent.
Negotiate like a pro -- If the car looks good, then it's time to talk numbers. When negotiating a car purchase, it is essential to have another experienced adult to assist. A professional car salesperson knows all sorts of ways to push people into buying just about anything for the highest possible price. That is, after all, their job. As charming as salespeople can be, remember that they aren’t really your friend, you are merely just a paycheck. Most car shoppers are outmatched during that phase of car buying.
If you’re buying from a private seller, negotiation is more straightforward. Research online what the current wholesale price is for the car based on its condition, mileage, and location—that is your target. Closer the better, and bonus points are awarded for getting an even better deal.
A used-car lot or dealership will focus on the retail price, again easily found online.Chances are, they bought the car for much less, up to $3,000 to $6,000 less, taking it as a trade-in or picking it up at a wholesale auction. They need to make a profit, of course, but your attitude should be that their most profitable deal of the day isn’t going to come out of your skin. The goal remains to get as close to the wholesale price as feasible, though in reality, you’ll probably end up in between the two figures.
If financing, pre-arrange a loan so that you know what the interest rate and loan term will be. If the dealership can beat what you arranged for yourself, great. If not, then you’re still covered. You can use an online calculator to figure out what your payments would be, based on the expected purchase price and down payment.
The salesperson will probably focus on monthly payments, as that enables them to sneak in added profit by stretching out the term of the loan. Monthly payments may look enticingly low but you’ll be paying those for a long, long time. When comparing one loan deal with another, add up the total of all the monthly payments. Because you did your homework, you can focus on the total amount, rather than just the monthly payments.
Negotiate one element of the deal at a time, establishing the purchase price, then moving on to discussing financing, if interested. Don’t be talked into extras, such as rust-proofing, fabric protector, or even an extended warranty. They aren’t necessary. You’re smarter than that, as proven by the effort put in to find a good, safe, reliable car.
If the seller won’t meet what you would consider a fair price, walk away. Every year, something like 40 million used cars change hands. Rest assured, there are plenty of other cars out there from which to choose. Getting a good deal on the right car can take a lot of patience and persistence but the reward—freedom and mobility—is worth the effort.
Must-have safety features -- Whether buying new or used, these are the features you want:
Antilock brake system (ABS): Readily available, antilock brakes prevent the wheels from stopping completely during hard braking. Because the wheels do not lock up, even during emergency braking on slippery surfaces, they enable the driver to retain steering control.
Electronic stability control (ESC): This feature prevents a car from sliding sideways, such as when going through a turn a bit too fast for the conditions. ESC can be especially welcome in bad weather. All new passenger now have ESC and have for several years. On older cars, ESC may have been optional. Make sure the specific used car you’re buying has it.
Head-protecting side airbags: Side and side-curtain airbags have been shown to provide real protection in a side impact, such as when T-boned by another car crossing an intersection.