Buying a used car is a smart move financially. However, it’s critical to avoid impulsively buying a car that will give you problems for years to come. Whether you are buying a used car from a dealership or private individual, having knowledge and resources will help you make a wise and informed choice. Here are five steps you as a buyer need to follow to make a good decision. 

1. Decide What You Are Looking For

The first step is to take some time and list what you want and need from a car. For example, do you want a big or small car, what features do you need, and how many seats must it have? Now research which cars fit your description and check their prices. 

Avoid merely walking into a car dealership and browsing. Salespeople are highly trained and will put pressure on you to buy right there and then. First, decide what you are looking for before visiting a dealership. Check the classifieds and different dealerships online to get an idea of what is available and the going price of the type of car you want. 

2. Work out Your Finances

Now that you know what you are looking for, it is time to work out your budget. Be realistic about what you can afford and stick to that budget. Remember to include costs for the car inspection and any repairs that may be necessary. Set a price range, which will help you narrow down your search. If you need to borrow money to cover the purchase, get a couple of quotes from various lenders for the most affordable loan. 

3. Carfax

Now that you have decided on the type of car you want and your price range, you may find a car that seems to tick all the boxes. But, before actually buying the car, check the Carfax report. This report gives you the history of the car, such as whether it has been in an accident or had other worrisome things happen to it. Certain dealerships run this report for you, but if they don’t or you are buying from a private seller, it is very wise to run the report yourself before making a commitment. 

4. Test Drive the Car

This is probably the most important step – how does the car drive? Test drive the car in different situations such as up and down steep hills and on the highway. Don’t be afraid to say no to the car if there is anything that you are not happy with. 

5. Have the Car Inspected

Take the car to a trustworthy mechanic for an inspection. He or she will be able to check the car for mechanical problems.  Don’t skip this step just because the seller claims that the vehicle is in good running condition with no mechanical faults. Verify it yourself. 

By following these five tips, you can find a great car that will keep you on the road for many miles and years ahead. 

Image via Flickr by ronsaunders47 

Tags: buying a used car, steps to buying a used car, what to look for in a used car
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