Before buying a new or used car, you need to consider several items to make an informed buying decision. Here are 10 important things you should consider before buying a car:
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- Determine what car fits your needs
- Get your credit report
- Review your loan options
- Discover your car’s trade-in value
- Determine your desired payment
- Decide whether to buy a new or used car
- Learn about the car’s history
- Consider whether you would like to buy or lease
- Research dealerships
- Start the negotiation
Just as importantly, it is crucial to consider your car-buying options before you decide to get a car. At Camino, we offer competitive rates, attentive and local service, and tailored financial products. Still, this is just scratching the surface of what to know before buying a car.
Before you pull the trigger on purchasing a new car, here is what to know about each consideration to make an informed decision that will put you on track to a bright financial future.
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Top 10 Things You Should Consider Before Buying a Car
When you are in the market for a car, whether it’s new or used, it’s essential to do your due diligence. As a trusted partner for borrowers like you, we are more than happy to help you identify what to know before deciding on a vehicle to buy.
From determining what car fits your needs to hitting the negotiation table prepared to get the car and terms you need, here is what to know before buying a car.
1. Determine What Car Fits Your Needs
Picking the right car for you and your family’s needs helps you narrow your search to the right car. By shopping for a car before you know what you are looking for, you will end up getting a car you don’t need and will have to trade it in again. Asking yourself the right questions can significantly help narrow down the right car for you.
Here are questions that will help you as you determine how to choose what car to buy: What type of car are you looking for? Is it a sports car? Or perhaps you need a larger car to accommodate a family? All of these are essential things to know before buying a car.
Once you decide the type when looking for a car, it is time to figure out what factors are most important to you. Make a list of what you really need in a car, such as safety, good gas mileage, safety features, etc. and focus your search on cars that meet those needs.
Next, you want to think about what you will be using your car for: commuting, camping, hauling a boat, etc.
Once you decide what style car best suits you, research the car makes and models available. Make sure to also read car reviews on specific models and years to get all the inside information possible.
Understanding how to choose the right car for you and your needs is essential to ensuring the car you purchase is right for you and your loved ones.
2. Get Your Credit Report
Buying a car is a big purchase, so you want to make sure you are able to finance a potential vehicle.
Start by checking your credit score; this is one of the most significant things you should consider before buying a car. The higher the credit score, the better chance you have of negotiating a lower interest rate on an auto loan.
If your credit score is less than satisfactory, review your credit report to find out what might be negatively affecting your score and determine what actions you can take to raise your credit score.
3. Review Your Loan Options
Once you know that your credit is in great shape or improving, it’s time to think about how to finance your next vehicle. Take a look at auto loan rates at your local credit union or bank and compare it to other options.
If you’re approved for a loan before visiting a dealership, it can save you time at the car dealership and also give you an advantage when negotiating the final sale price of the car you choose.
Related Article: 3 Things to Know Before Applying for an Auto Loan
What Factors Should You Consider When Selecting an Auto Loan?
When evaluating auto loans, it’s easy to focus solely on the monthly payment, but several factors significantly impact the total cost of your loan. Consider these key elements when you are making the decision about the right auto loan for you:
- Annual Percentage Rate (APR): This is the true annual cost of the loan, encompassing the interest rate plus any additional fees. Always compare APRs of loans to get an accurate comparison of the total cost.
- Loan Term Length: While a longer term (e.g., 84 months) means lower monthly payments, you’ll pay more in total interest over the life of the loan. A shorter term typically has higher payments but saves you money overall. Ultimately, which length is right for you depends on the monthly payments you can make.
- Fees and Penalties: Inquire about any application fees or prepayment penalties, which can add to your total cost. You don’t want to be surprised by any hidden fees or unexpected penalties. We advise asking the lender directly about these items.
- Down payment: A larger down payment reduces how much you need to borrow, leading to lower monthly payments and potentially a better rate. If you can afford to wait to save for a larger down payment, this could also result in significant savings.
At Camino, we’re committed to offering competitive rates with flexible terms. As a not-for-profit credit union, we strive to provide lower interest rates and fewer fees. Our attentive and local service ensures we find a plan tailored to your unique financial situation.
Related Article: How Credit Union Auto Loans Work
4. Discover Your Car’s Trade-In Value
If you currently have a car that you plan to trade-in, don’t wait for the salesman to tell you what it’s worth, do your own research. This is one of the most overlooked things to consider when buying a car, but it is crucial to understand because it can help offset some of the cost.
Use Kelley Blue Book to input the specific details of your vehicle, including the year, make, model, mileage and condition. If there are minor cosmetic repairs needed, consider making them yourself to increase your car’s net value.
Once you get an estimated trade-in value for your vehicle, you will be better prepared when you go to the car dealership to negotiate and accept an offer on your current car.
Another great option if you have the time and patience is to sell your vehicle yourself instead of trading it in. You can make more by doing it that way.
5. Determine Your Desired Payment
It’s important to understand the factors that impact your auto loan terms and fees so that you can figure out what monthly payment you can afford.
Keep in mind that it’s recommended you spend no more than 10% to 15% of your monthly after-tax income on your car payment.
The key pieces of information you need to calculate your monthly payment are the loan amount, the annual percentage rate (APR), and the term.
You may also want to consider putting a down payment on your new car to arrive at a smaller loan amount, which leads to lower monthly payments.
Your desired payment is one of the most significant things you should consider before buying a car because it will have a far-reaching effect on your entire financial situation.
6. Decide Whether to Buy a New or Used Car
Buying and leasing isn’t the only decision you have to make during the car-buying process. The next choice you face is whether to get a new car or a used car.
There are advantages and disadvantages to buying new vs used cars, and we explain them here.
7. Learn About the Car’s History
If you are purchasing a used car, you should make sure you have a full understanding of the vehicle’s history. Looking at the car’s history can give you a lot of information, including the number of checkups, past owners, accidents, and any repair history that has been reported.
You can use services like CARFAX and AutoCheck to look up a particular can by its VIN and view the history. As a car buyer, it’s also your right to have a mechanic look over the car before you make a purchase. While you will have to pay for the car inspection, a trusted mechanic can point out potential issues that might cost you thousands of dollars down the road.
8. Consider Whether You Would Like to Buy or Lease
Think of buying and leasing as owning versus renting.
If you buy a car, you’re financing the entire cost of the vehicle (minus any trade-in or down payment). If you choose to lease a car, you pay the cost for the length of time that you have it, calculated by subtracting the car’s value at the end of your lease from its value when you first took possession of the vehicle.
When making the decision to lease or buy a vehicle, you need to ask yourself some questions.
- How much do you drive? There’s usually a limit to how many miles you can put on a leased vehicle before you have to pay additional fees.
- Do you keep your car in good shape? With a lease, you may have to pay a penalty for returning a car that’s not in good condition.
- Is there a possibility of major life changes occurring during the term of your lease? There’s often a fee involved in terminating a lease agreement early.
Looking for Second Chance Car Loan Options or Car Loans for Low Credit?
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9. Research Dealerships
In addition to researching cars, it is also a good idea to research different dealerships. Read reviews from other customers to find out what experiences they’ve had. Ask your family, friends, and neighbors for recommendations. They should be able to direct you to a dealership or even a salesman who provides an excellent customer experience.
Once you’ve done your research, test drive the cars you are interested in at multiple dealerships. There may be one dealership that will offer you a better rate on the vehicle you want to purchase.
10. Start the Negotiation
After weighing the above things you should consider before buying a car, it is time to hit the negotiating table. But your work is far from finished. You must understand how these negotiations could play out so that you are prepared to get the best possible deal.
Now that you’ve done your research and test-driven cars, it is time to get your dream car. Remember your budget and stick to your ground. If the salesman asks for your top dollar, quote a number that’s lower so you eventually settle somewhere near your target price. You want to make sure that you are comfortable with the monthly payment.
With lots of preparation and research, you will get your dream car in no time!
Now You Know the Top 10 Things You Should Consider Before Buying a Car. Do You Need Help Getting a Vehicle Loan? Apply Today.
Now you’ve read the best guide for buying a car in Montebello. As we work together to get through these ever-changing times, let us know how we can help! Before committing to a new vehicle, it is always important to weigh the different things you should consider before buying a car. At Camino, we have several auto loan options available to help you finance or refinance your dream car. With this newfound understanding of nearly everything you need to know about buying a car, you can approach this exciting milestone with confidence.
Please, call us at 800-835- to speak with a Member Advisor, or visit us online at caminofcu.org for more information. We are here to help you on your financial journey.
FAQs About the Top Things to Know When Buying a Car
We are sure you have plenty more questions about buying a car, and we don’t blame you! This is a big financial commitment that you don’t want to take lightly. Like the best car-buying guides, we want to be more than just a lender. We want to be one of your go-to car resources, so we are more than happy to provide you with the answers.
From tips on buying a new car to car-buying decision factors for first-time buyers, here are the most frequently asked questions about things to consider when buying a car:
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What Should I Look for When Buying a Car?
When shopping for a vehicle, you should start by prioritizing what fits your lifestyle and financial situation. A good starting point is determining your needs.
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Do you need a family-friendly SUV to take the kids to and from school or practice, an economical commuter to get to work, a rugged truck for hauling, or a reliable, spacious vehicle that you can put some road trip miles on? These needs will factor in significantly.
Consider things like safety ratings, fuel efficiency, reliability (check reviews!), and features that are important to you (e.g., cargo space, technology, all-wheel drive). These are some of the most important factors to consider when buying a car.
Once you have a clear idea of your needs, you can narrow down the makes and models that align with those priorities, making it far easier for people like you who are on the market for a new ride to answer the question, How to choose the right car for me?
What to Check Before Buying a Car?
Because this is such a big investment, doing your due diligence is key, and inspecting the vehicle you are considering purchasing is one of the most important and best practices when buying a car to ensure you are making an informed decision.
Before finalizing a car purchase, whether new or used, there are several things to check when buying a car before committing and pulling the trigger:
- Test drive the car thoroughly, on different types of roads if possible.
- Inspect the interior and exterior for any damage, wear, or inconsistencies, and to bring these to the sellers attention immediately.
- Review your loan options and secure financing if possible, to give you an advantage at the dealership.
- Determine your desired monthly payment based on your budget.
Now, when it comes to a physical inspection specifically, here’s what to check for when buying a car, from the exterior to the interior:
- Body Panels: Look for dents, scratches, rust, and inconsistent paint colors, which could indicate past accidents or repairs. Ensure all panels line up correctly.
- Tires: Examine tire tread depth and look for uneven wear, which could suggest alignment issues. Check if all tires are the same brand and type.
- Lights: Test all exterior lights – headlights (high and low beams), turn signals, brake lights, and reverse lights.
- Glass: Look for chips, cracks, or scratches on the windshield, windows, and mirrors.
- Under the Car: Briefly check for any obvious leaks (oil, coolant, transmission fluid) or excessive rust on the undercarriage.
- Seats and Upholstery: Look for tears, stains, and excessive wear. Ensure seat adjustments (manual or power) work smoothly. Ensure seatbelts work well, too.
- Dashboard and Controls: Test all dashboard lights, gauges, and essential controls like wipers, horn, radio, air conditioning, and heating.
- Odors: Pay attention to any unusual smells, such as mildew, smoke, or a strong chemical odor, which could indicate underlying issues. If something smells off, this is worth expressing.
- Warning Lights: Ensure no persistent warning lights (e.g., check engine, airbag, ABS) are illuminated on the dashboard when the car is running.
It’s important to understand that you need to be a little more cautious when you are purchasing a used car. Here what to check before buying a used car:
- Obtain a vehicle history report (like CARFAX or AutoCheck) to check for accidents, past owners, and service records.
- Have an independent mechanic inspect the car before purchasing. This can reveal hidden issues that might cost you significant money down the road.
Even with a brand-new vehicle, a careful inspection before you drive off the lot is highly recommended. While you won’t need a vehicle history report or an independent mechanic for major mechanical issues, you should still ensure everything is pristine and as expected.
Remember, when purchasing a new vehicle, you should have the rightful expectation that it will be in mint condition. Here are some important things to check when buying a new car:
- Body Panels & Paint: Walk around the entire car in good daylight. Look for any dents, scratches, swirls, or chips in the paint. Check that all body panels (doors, fenders, hood, trunk) are flush and have consistent gaps between them. Inconsistent gaps can sometimes indicate transit damage that has been repaired.
- Glass & Lights: Inspect the windshield, windows, and mirrors for any chips, cracks, or scratches. Turn on all exterior lights (headlights, high beams, turn signals, brake lights, fog lights, reverse lights) to ensure they work correctly.
- Tires: Verify that the tires are new and match the specifications for your car’s trim level. Check the tire pressure (often overinflated for shipping) and ensure the valve caps are present. Also, locate the spare tire (or inflation kit) and ensure it’s in place and properly inflated.
- Undercarriage: Briefly peek underneath for any obvious leaks or hanging components, though this is less common with new cars.
- Badges and Trim: Ensure all brand badges, model names, and exterior trim pieces are correctly applied and free of defects.
- Seats and Upholstery: Check for any tears, stains, scuffs, or unusual wear on the seats, dashboard, door panels, and headliner. Ensure all plastic shipping covers have been removed.
- Electronics & Controls: Turn on the ignition and test all electronic features:
- Infotainment System: Check the radio, Bluetooth, USB ports, navigation (if applicable), and screen responsiveness.
- Climate Control: Test the AC and heater, ensuring all vents blow air at the correct temperature.
- Windows & Locks: Test all power windows and door locks, including child safety locks if present.
- Lights: Check all interior lights (dome lights, map lights, vanity mirror lights).
- Wipers: Test front and rear wipers, and the washer fluid dispenser.
- Steering Wheel Controls: Test buttons for audio, cruise control, and .
- Dashboard & Gauges: Ensure no warning lights are illuminated after the car starts. Check that all gauges (fuel, temperature, speedometer, tachometer) are functioning.
- Storage & Compartments: Open and close the glove box, center console, and any other storage compartments.
- Floor Mats: Confirm the correct floor mats are included and in good condition.
- Cleanliness: The engine bay should be clean and free of excessive dust or debris.
- Fluid Levels: Check essential fluid levels (engine oil, coolant, brake fluid, windshield washer fluid) to ensure they are at the correct marks.
- No Obvious Leaks: Look for any visible leaks around hoses or connections.
- VIN Match: Compare the VIN (Vehicle Identification Number) under the windshield with the VIN on your paperwork to ensure they match.
Now that you have an understanding of everything to check and inspect when making this purchase, let’s answer the question: What should I know before buying a car?
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What Do I Need to Know When Buying a Car?
Having an understanding of what to know before buying a car is absolutely essential to put yourself in the best possible financial position on the lot, at the negotiating table, and in the future. Here’s what you need to know before buying a car:
- Your Needs vs. Wants: Clearly define what kind of car truly suits your lifestyle and budget, separating essential features from desirable luxuries. Take some time to carefully determine what features are dealbreakers and what you can live without.
- Your Financial Health: Understand your credit score and review your credit report. This directly impacts the interest rate you’ll qualify for on an auto loan.
- Loan Options: Research different lenders (banks, credit unions like Camino, and dealership financing) to compare interest rates and terms.
- Trade-In Value (if applicable): Know the fair market value of your current vehicle using resources like Kelley Blue Book before you head to the dealership.
- Budget: Determine a monthly payment that fits within your financial plan (ideally, no more than 10-15% of after-tax income). When creating a budget, it is crucial to be as honest as possible with yourself so you don’t stretch yourself too soon.
- New vs. Used vs. Lease: Understand the pros and cons of each option to decide which is best for you.
- Dealership Reputation: Research dealerships and read customer reviews to ensure a positive buying experience.
- Negotiation Strategy: Be prepared to negotiate the price, armed with your research on market value and loan pre-approvals.
Related Article: How to Budget for Your Next Car Purchase in Montebello
How Much Car Should I Buy?
Cost and budget are some of the most important things to think about when buying a car. The “right” amount of car to buy is highly personal and depends on your financial situation.
A common guideline is to spend no more than 10% to 15% of your monthly after-tax income on your car payment. If your car payment exceeds this percentage, you are likely eyeing too much car for your financial situation.
This is because beyond the monthly payment, you need to factor in other ownership costs like insurance, fuel, maintenance, and potential repairs. It’s crucial to buy a car that you can comfortably afford without straining your overall budget, ensuring a bright financial future.
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How Should You Prepare When You’re Getting Ready to Buy a Car?
At the heart of what to consider when buying a car is preparation. Prudence when preparing to buy a car involves a combination of research and financial planning:
- Define Your Needs: What type of car, features, and budget are you aiming for?
- Check Your Credit: Obtain your credit report and score to understand your borrowing power.
- Explore Loan Options & Get Pre-Approved: This is a crucial step that can significantly empower your car-buying journey. By getting pre-approved for an auto loan from a bank or a credit union (like Camino) before you even set foot in a dealership, you’ll know exactly how much you’re approved to borrow and at what interest rate. This not only gives you a clear financial limit but also strengthens your negotiation position. When you’re pre-approved, you walk into the dealership as a cash buyer, shifting the focus from your ability to get a loan to simply negotiating the best price for the car itself.
- Value Your Trade-In: If you have a car to trade, research its value beforehand.
- Research Cars: Read reviews, compare models, and understand typical pricing.
- Research Dealerships: Look at customer reviews and ask for recommendations.
- Save for a Down payment: The larger the down payment you make, the more you can reduce your loan amount and lower your monthly payments. Saving for a larger down payment can be a great way to significantly reduce the total cost of your loan.
Now that you know how to prepare for this major purchase, you are probably asking yourself, What do I need before buying a car? We are going to answer that next.
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What Do You Need Before Buying a Car?
It’s important to keep in mind there are several things you need when buying a car, like documentation. This is especially important when you want to obtain financing from a lender. Before you go to the dealership, here are essential things you need to buy a car:
- Valid Driver’s License: Required for test drives and vehicle registration.
- Proof of Insurance: You’ll need to show proof of insurance before driving off the lot.
- Proof of Income/Employment: Lenders will require this to approve your loan.
- Credit Report/Score: Knowing this information beforehand is crucial for loan applications and negotiations.
- Pre-Approval Letter (if applicable): If you’ve secured financing from an outside lender.
- Trade-In Title/Registration (if applicable): For your current vehicle if you are going to trade it in.
- Down Payment Funds: Whether cash, check, or proof of transfer.
- Research: Knowledge about the car you want, its fair price, and the dealership’s reputation is key to making a smart financial decision.
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What Factors Do You Consider to Be the Most Important When Looking for a Car?
While individual priorities vary, the most important factors when buying a car for you to consider generally include:
- Reliability and Safety: Ensuring the vehicle is dependable and protects its occupants. This feature tends to be more important for families.
- Cost of Ownership: This includes not just the purchase price, but also fuel economy, insurance costs, maintenance, and potential repair expenses.
- Fit for Needs: Does the car comfortably accommodate your passengers, cargo, and intended usage (e.g., daily commute, family trips, hauling)?
- Resale Value: How well the car holds its value over time can impact your long-term financial picture.
- Comfort and Driveability: How the car feels to drive and ride in, including ergonomics and handling.
If this is your first time embarking on a car-buying journey, you are probably asking yourself: What should you consider when purchasing a vehicle for the first time? We are more than happy to get into that next.
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What Are Things to Know Before Buying a Car for the First Time?
We know buying your first car is a truly exciting milestone, but don’t let your eagerness cause you to make a rash decision. It still requires careful planning. Here are key things you should know about buying a car for the first time:
- Understand Your True Budget: Beyond the monthly payment, factor in ongoing costs like insurance, fuel, maintenance, registration fees, and potential repairs. Aim for total car expenses (car payment + cost of ownership) to be no more than 15-20% of your monthly take-home income.
- Credit is Key: Your credit score significantly impacts the interest rate on your auto loan, and it can even be the key that opens the door to a wider range of financing options. Work to build or improve your credit before applying.
- Research Thoroughly: Never rush into a decision – especially one as significant as buying a car. Research different makes and models that fit your needs and budget. Read reviews on reliability, safety, and owner satisfaction. The same goes for your loan. Do your homework before obtaining financing from a financial institution.
- Consider Used or Certified Pre-Owned (CPO): For a first car, a reliable used vehicle or a CPO car can offer significant savings on the purchase price and depreciation, while still providing some warranty coverage.
- Get Pre-Approved for a Loan: As discussed, securing financing from a credit union like Camino before visiting a dealership gives you a strong negotiating position and clarity on what you can afford.
- Don’t Skip the Test Drive & Inspection: Drive the car in various conditions. If buying used, always get a pre-purchase inspection from an independent mechanic to ensure that the vehicle you buy has a clean bill of health.
- Read the Fine Print: Understand all terms and conditions of your loan agreement and the purchase contract before you sign.
Related Article: Should My First Car Be New or Used?
What Should You Be On the Lookout for When Buying a Car?
Being a vigilant buyer helps you avoid potential pitfalls and ensures you get a fair deal. Here are key things to look out for when buying a car, whether you’re buying new or used:
- Hidden Fees: Always ask for the “out-the-door” price, which includes all taxes, registration, and dealer fees. Be wary of additional charges for services or products you didn’t ask for or don’t need (e.g., rustproofing, paint protection, extended warranties that aren’t clearly explained).
- Pressure Tactics: A reputable dealership will give you time to make an informed decision. Be cautious of salespeople who use high-pressure tactics, try to rush you, or discourage you from comparing offers.
- Discrepancies in Information: Cross-reference information provided by the seller or dealership with your own research (e.g., vehicle history reports, online pricing guides).
- Misleading Loan Terms: Understand the APR (Annual Percentage Rate), not just the interest rate. A lower monthly payment can sometimes hide a much longer loan term and more interest paid overall.
- Undisclosed Damage (Used Cars): For used vehicles, look for signs of previous accidents or poor repairs, such as mismatched paint, inconsistent panel gaps, or new paint overspray on trim. A pre-purchase inspection is your best defense here.
- Odometer Tampering (Used Cars): Check the vehicle history report for any inconsistencies in mileage records.
- Unusual Odors (Used Cars): A musty smell can indicate water damage (e.g., from a flood), while strong chemical smells might suggest attempts to cover up issues. If you detect unusual odors, this should be a red flag.
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What to Look for When Buying a Car?
When you’re actively evaluating specific vehicles, there are several things to look for in a car. At this stage of the process, your focus should shift to assessing their condition, features, and overall value for what to look at when buying a car.
This need for additional scrutiny applies to all cars when you are learning what things to look for when buying a car, and there are crucial things to consider before buying a new car or a pre-owned vehicle. Here are the top things to consider when buying a new car:
- Safety Features: Prioritize vehicles with strong safety ratings from organizations like NHTSA or IIHS. Look for modern safety technologies such as automatic emergency braking, lane-keeping assist, blind-spot monitoring, and a rearview camera.
- Reliability Ratings: Research the long-term reliability of the make and model. Sites like Consumer Reports or J.D. Power provide valuable insights into common issues and predicted reliability.
- Fuel Efficiency: Consider the MPG (Miles Per Gallon) ratings for city and highway driving, especially if you have a long commute or will find yourself sitting in molasses-like Los Angeles traffic. This impacts your ongoing ownership costs.
- Practicality and Space: Does the car meet your needs for passenger capacity, cargo space, and overall comfort? Test out the trunk, back seats, and ease of entry/exit.
- Test Drive Performance: Note how the car accelerates, brakes, steers, and handles bumps. Listen for unusual noises from the engine, brakes, or suspension.
- Comfort and Ergonomics: Ensure the seating position is comfortable for your height and size and the controls are intuitively placed and easy to reach.
Specific things and features to consider when buying a car that’s used include:
- Evidence of Regular Maintenance: Ask for service records. A car with a consistent maintenance history is generally a better bet.
- Tire Condition: Check the tread depth and look for uneven wear, which could indicate alignment problems.
- Fluid Leaks: Look under the hood and beneath the car for any signs of fluid leaks (oil, coolant, transmission fluid).
- Rust: Inspect the body panels, wheel wells, and undercarriage for rust, especially in areas with harsh winters.
- Interior Wear and Tear: Beyond superficial dirt, look for excessive wear on pedals, the steering wheel, and seats that might not align with the odometer reading.
- Functionality of All Features: Test every button, knob, and electronic feature (windows, locks, radio, A/C, lights, etc.) to ensure everything works as it should.
Now that you know what things to look at when buying a car, let’s get into what you should make sure you do before you make a purchase.
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What to Do Before Buying a Car?
Taking proactive steps before you commit to a purchase is essential to setting yourself up for success. Here are 8 key things to do before buying a car:
- Determine Your Needs and Wants: Clearly define the purpose of the car (commute, family, hauling), essential features (safety, fuel economy), and desirable luxuries. This will help you create the criteria as you make a decision.
- Set a Realistic Budget: Calculate how much you can truly afford, including the purchase price, loan payments, insurance, fuel, and maintenance. This will require assessing your entire financial situation. While it is certainly possible to save and reduce costs in different areas of your life to afford a nicer car, it is important to ensure that living with these reductions is realistic.
- Check Your Credit Score and Report: Understand your financial standing and identify any areas for improvement that could secure a better loan rate. If you can afford to wait, taking time to improve your credit score could result in considerable savings in the long run.
- Get Pre-Approved for an Auto Loan: Obtain a pre-approval from a bank or credit union to know your borrowing power and interest rate before negotiating with dealerships.
- Research Car Models and Fair Market Value: Use online resources like Kelley Blue Book or Edmunds to understand typical pricing for the vehicles you’re considering.
- Assess Your Trade-In Value (if applicable): Research the value of your current vehicle independently so you have an informed basis for negotiation.
- Research Dealerships/Sellers: Read reviews and ask for recommendations to find reputable places to buy. We can also help you find the right dealer for you or even bring in an agent from Carscouts, an auto-buying service that allows you to buy a car without ever having to go to the dealership.
- Plan Your Negotiation Strategy: Know your target price and be prepared to walk away if the deal isn’t right for you.
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What Are Good Questions to Ask About a Car Before Buying It?
Ultimately, the best way to get the information to ensure you are making an informed car-buying decision is to ask the right questions. After all, you don’t know what you don’t know.
Here are essential questions to ask, regardless of whether you’re considering a new or used car or purchasing through a private seller or a dealership, to ensure you have a firm grasp on what to know when buying a car:
- What is the “out-the-door” price, including all taxes, fees, and charges? (Crucial for total cost transparency.)
- What warranties or guarantees come with the car? (For new cars, confirm manufacturer warranty details; for used, ask about any dealer warranties or if it’s sold “as-is.”)
- Can I take the car for an extended test drive? (Allows you to assess performance in various conditions.)
- What are the financing options available, and can you beat my pre-approved rate?
- Are there any current rebates or incentives I might qualify for?
Here are additional questions to ask when considering purchasing a used car:
- Can I see the vehicle history report (e.g., CARFAX or AutoCheck)?
- Can I take the car to my mechanic for a pre-purchase inspection? (A non-negotiable question for used cars.)
- What is the car’s service and maintenance history? Do you have records?
- Has the car been in any accidents? If so, what was the damage, and where was it repaired?
- How long have you owned the car, and why are you selling it? (For private sellers, this can offer insights into the car’s past.)
- What is the current mileage, and can you confirm it’s accurate?
- Is the title clean and readily available?
- Has the car had any recalls, and have they been addressed?
Here are questions to help you learn crucial things to know before buying a new car:
- What is the factory warranty coverage, and for how long does it last (miles/years)? (Understanding this protects you from unexpected costs down the road.)
- Are there any manufacturer-to-dealer incentives or rebates that can be applied to this specific model? (Sometimes these aren’t advertised but can lower the price.)
- What “dealer add-ons” are included in the price, and are they optional? (Be aware of items like paint protection, fabric guard, VIN etching, or nitrogen-filled tires that might be added without your explicit request.)
- Is this specific trim level or color in stock, or would it need to be ordered? If ordered, what is the estimated delivery time? (Important for managing expectations and planning.)
- Can you provide a buyer’s order that itemizes all costs, including the MSRP, dealer fees, taxes, and any accessories? (Ensures transparency and confirms the agreed-upon price in writing.)
By asking these questions, you will be ready to fully consider what to think about when buying a car now and at the negotiating table, arming yourself with the information needed to make an informed car-buying decision.