Most of us will buy countless cars over the course of our lives, or at least try to. Unfortunately, buying a car can seem a little complex, and it’s easy to fall into common traps that can cause hefty costs if you buy the wrong car. That’s why I decided to make a complete guide to buying a car – with all the ins and outs I had to learn firsthand! Let’s skip the jargon and get straight into what you need to know.
Try Not To Buy New
I hate to say it, but there is no way around it. As far as your finances go, buying a new car is pretty much always a bad decision. Now, the extent of how bad that decision is can vary, but you’re usually paying for way more than what you’re getting. Of course, personal finances are just that – personal. If you want a new car, then by all means go for it. Just know that you’re likely paying an exorbitant amount for some extra small conveniences or to have the newest and (subjectively) best looking model. I get the appeal, but try not to fall for it!
General Tips
Okay, now that we’ve covered the fact that you should avoid buying new, let’s discuss some general tips for buying a car. This should apply whether you’re buying a used or brand new car.
Get Preapproved If You Need A Loan
First off, if you need to get a loan to purchase a car, it’s best to go ahead and do the paperwork to get preapproved before you approach a dealer or seller. That way you know what your budget is, have shopped for the best deals on loans, and can begin the negotiation with the basics down.
Buying In Cash Is Nicer
Obviously, if you can, buying in cash can be really nice and definitely opens doors in the used car market. However, it isn’t always necessary – especially with the exceptionally low interest rates you may be able to get on car loans. Just keep it in mind.
Hold Your Cards Close To Your Chest
You may’ve already decided on a car, and will do anything to get it, or you may have a budget that is far over the sticker price of the car. Keep that information to yourself. Not all salesmen are, but many can be slimy and will try to take advantage of you. Only say what you need to in order to get the ball rolling – don’t show your entire hand too soon.
Watch Out For Warranties And Add-Ons
Be wary of warranties and extra add-ons people try to sell to you, more often than not they’re ridiculous. This applies to new cars more often than used cars, but it can happen with either. Usually the addons are overpriced, and the warranties are set up to just maximize how much money the dealer can get from you – the fact is most of those warranties are money pits for the consumer. Not all are though, which is why it’s important to be cautious and do your research.
Don’t Buy Too Much Car
I have this same piece of advice when it comes to buying your first house – don’t buy too much. Let’s be blunt, most Americans are buying far more car than they need, and it reflects in the state of their finances. Figure out what you need and want, but keep it reasonable and don’t overdo it. Life is about priorities, so don’t spend so much on the car that it forces you to neglect other necessities.
Buying New
Again, buying new is a bad idea. Yet, I know most people will want to buy a new car. In that case, here are some tips to help you save a lot of money when you buy a new car.
Set Your Budget
Set a budget and stick to it no matter what. A lot of people walk in with a budget in mind, and then get convinced to go far over it. Don’t fall into these silly traps. Figure out what the maximum amount you can spend is, then refuse to go over that number no matter what. You’ll thank yourself later.
Identify Must-Haves
Another important thing to consider is your absolute must-haves. It’s fine to have wants and extra wishes, but you need to figure out exactly what you need in order for the car to be worth its cost. Once you figure that out, it can get much easier to stick to a budget since you know what you’re willing to sacrifice and what is a nonnegotiable.
Research Your Options
Do your best to research before you walk into a dealership. Car salesmen are obviously biased, and they may try to lead you down the wrong path. If you do the legwork before you even go in, then you’re less likely to be taken advantage of or convinced of something that isn’t true or ultimately helpful for you.
Find The Car And Test Drive It
Once you have found the car you want, it’s wise to test drive it. You don’t want any surprises in the future, so get behind the wheel and make sure it’s what you expect. Look for obvious problems, but also make sure it’s the right fit for you.
Get The Best Deal
Negotiation can be a bit messy, which is why I’ve written about it here. At this stage, just focus on making sure you’re getting a fair deal and that it’s the right car for you and your needs.
Buying Used
Buying used tends to save you a lot of money in the long run, and it’s what I have almost exclusively done throughout my life. I stand by it, but there is some extra headache you have to deal with.
It Pays To Be Friends With Your Mechanic
Obviously, you need to learn a little more about cars, or be close with someone who knows a lot about them (like your mechanic). Additionally, if you’re friends with your mechanic, then you know they’re being honest about prices and what needs to be repaired or replaced. Finding a good mechanic and sticking with them is key to saving money with a used car.
Set Your Budget
Setting and sticking to your budget is much like it would be with a brand new car. The discipline is the hardest part. Of course, you also have to add in a couple additional fees to your budget. For example, if you buy a used car with old tires, then that should be factored into your budget since you’ll have to replace them.
Identify Must-Haves
Again, identify the must-haves. A used car is likely more about how well it runs and its safety features rather than being the newest and shiniest with tons of over-the-top features and add-ons. Focus on your actual needs here and you’ll be fine.
Find The Best Deals You Can
It’s helps – a lot – if you shop around and do some extensive price comparison when you’re buying used. Some people try to sell their car for two or three times what it is worth. Don’t fall prey to those tactics!
Check The Vehicle Closely And Get Its History
If you don’t know much about cars, bring someone who is close to you that does. Check the car closely, try to identify any issues or problems, and pull up its history to see if there is any record of accidents. If you’re diligent in this step, then you’ll ultimately save a lot more money than if you had bought something brand new.
Conclusion
Whether you bought new or used, enjoy the car! Let us know in the comments what your experience with buying cars has been, and if you have any extra tips or thoughts on the process.
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