All You Need to Know About Purchasing a Used Car

Shopping for a used car can be exciting and overwhelming all at once. You get the opportunity to find the car that’s perfect for you, at a price you can afford. But you must be well-prepared and know exactly what you’re looking for.

Below is a shopping guide that’ll help you navigate the used car market and buy the right used car for you.

Set Your Budget

There are two ways to purchase a car – take out a loan or pay cash. If you choose to pay cash, budgeting is simple. But, make sure you don’t spend all your savings. Set aside money for insurance, registration, and possible future repairs. A majority of people take out an auto loan so they can protect their savings and buy a more expensive car model. Your monthly car expenses shouldn’t be more than 20% of your take home pay.

Choose the Right Car

There are several factors to consider when choosing a car. Take time to think about how you plan to use the car. Consider the distance and types of trips you plan to make with this car. Will it be used to primarily commute in the city, or to go on long road trips? You’ll also need to ensure the car offers enough space. If safety is a priority, check out the car’s reports for crash tests.

Negotiate the Best Price

Negotiation doesn’t need to be stressful, especially if you’ve done your research. Make sure you compare the seller’s asking price to the average market price. Most times, sellers ask for more than the market average. When bargaining with a car salesperson at a dealership, remember that you’re dealing with a pro who knows all the tricks of the trade, so you need to bring your A-game!

Close the Deal

Before taking ownership of the new car, you must buy a new insurance policy. Be sure to get a title and have the seller sign it correctly. Always take time to review all the paperwork involved and don’t let yourself be pressured into signing something just to get it over with.