Guide to Buying a Used Car
I recently purchased a used car, a 2003 Honda CR-V, and thought it would be a good idea to share some tips I learned while shopping for a car. So, let’s jump right in.
First of all, you will need to get an idea of what type of car you want. Are you looking for a sports car? Maybe an SUV? Truck? What are you going to be mostly using this car for? Once you have that decided, then you need to start thinking about how much you are willing to spend on the car. I would recommend setting a maximum amount and sticking with it. Let’s say you want to buy an SUV because you have a growing family and you are willing to spend ,000.
Now that you have all that figured out, it is time to start looking around for a good dealer or private seller. In my opinion, buying from a private seller is a much better option and you can usually find a better deal this way. You can start your search at www.craigslist.org to see what people are selling in your area. If you would rather buy from a dealer or can’t find anything on craigslist, do a google search for “used car dealers” in your area. Check around and see if you can find reviews and/or car inventory for the used car dealers before going to them in person.
Once you have narrowed down your search, it’s time to go to www.kelleybluebook.com and www.edmunds.com to get a free used car price quote. On these sites you will find quotes for retail, private party, and trade-in value. Print out a copy of this and take it with you when buying the car so you can haggle over the price. You don’t want to pay more than blue book value if you can help it!
Ok, so now you have your car picked out, you have the kbb price, and you are ready to go buy a car right? Wrong! You still have two more crucial steps to complete…most importantly, how are you going to finance this vehicle? If you have good credit you should check with your bank first, they usually have good rates, especially if you bank with a credit union. Make sure you check a few different places though, either online, your bank, or dealership financing to find the lowest rates possible. You don’t want to get stuck with something crazy like a 40% interest loan! Along the same lines, you need to shop around for a good car insurance company because if you buy from a dealer you will need to have the car insured before driving it off the lot. You can compare insurance quotes online at websites like www.geico.com and www.progressive.com.
Good luck and you can check out my blog for more tips!
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