Buying a car
What is at least one thing you should do before purchasing a car (new or used)?
1. Define what you want and do your research. Before anything else, take some time to write down what you want from a car: How many people does it need to sit? Would you like it to be small or large? Are there certain features that you feel you can't live without? Then research which cars fit your description and what their prices are - Kelley Blue Book is a great resource for that. Walking into the dealership just to browse can prevent you from really finding the best deals because you may be pressured into the sale by a highly trained salesperson. Before you ever set foot on a lot, look at classified ads and print out information on cars from different dealerships so that you have a better idea of what is available and what you should expect to pay for similar vehicles in your area. 2. Set your budget. Don't let a pushy salesperson persuade you to extend your budget just to get the vehicle you want. Setting a price range for yourself can also help you narrow your search and negotiate a price you are truly comfortable with. When you talk with the seller, be firm with your budget range, but don't share your target price until the dealer or seller makes an offer - not revealing the number gives you more negotiating power. And remember, a used car budget shouldn't just include funds for the car, but also money for an inspection and to cover any small repairs that may be necessary. 3. Consider all of your financing options. If you aren't planning to buy the car with cash, consider financing options beyond the dealership. You may be able to get a great rate on an auto loan through a credit union, for example. Try to get rate quotes from a few places, and talk to each potential lender about the types of cars and price range you are working with. 4. Run a Car fax report. Car fax reports give you the history of a car, letting you know if the car has been in an accident or might have any other potentially worrisome events in its history. Some dealerships will run reports for you, but for other dealerships (or if you're buying for a private seller) you can run a report yourself. 5. Do a test drive. This is perhaps the most important part of buying a used car - seeing how the car actually drives. Try to test it in a variety of situations, including on the highway and up and down hills. If anything seems off to you - or even if you find the car uncomfortable - don't be afraid to walk away. 6. Get the car inspected. Having the vehicle inspected by a trustworthy mechanic needs to be part of the buying process. You can run a basic visual check of the engine and frame on your own, but you will still need a mechanic to take a look under the car and run some basic tests. Even if the seller insists there are no mechanical defects or major issues, you should verify that the car is in good shape with a comprehensive inspection - after all, the seller is getting rid of the car for a reason. 7. Be prepared to walk away. Don't walk into the sale with the intent of purchasing the car that day. Being too eager to make the purchase can put you in a position to accept an offer you're not truly comfortable with or settle for something that may cause more problems down the road. No matter how good the deal seems, be prepared to shop around so you aren't pressured into buying a vehicle that may not be the right match for you.
What is the difference between buying a car from dealership vs a private party?
If you're looking for the best possible purchase price, you're likely to find it from a private seller rather than a dealer. ... Instead, private sellers are usually trying to sell an old vehicle so they can buy a new one, and that means they're often more willing to negotiate just to ensure that the car is sold quickly.
What is the Kelley Blue Book?
Private Party Value is the starting point for negotiation of a used-car sale between a private buyer and seller. This is an "as is" value that does not include any warranties. The final sales price depends on the car's actual condition and local market factors.
What information does a Vehicle History Report (ex: Car fax) provide
Records included in each CARFAX Report reveal important information about a car's history, such as an odometer reading, existence of a branded title such as a salvage/junk title, or past registration as a fleet vehicle.
What is the difference between buying and leasing a car?
The primary difference between buying and leasing a car is ownership. When you buy a car, you own the vehicle and can keep it for as long as you choose. When leasing a car, you're essentially renting it on a long-term basis from the dealership for a specific period of time.
What does depreciation mean
is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.
What cost are associated with the purchase of a car
the charge is meant to cover the cost of office personnel doing the paperwork after the sale of a new or used car. Most dealerships charge anywhere from $50 to $500 and the fee is normally not brought to your attention until right before you sign the paperwork for your vehicle
