Things to consider When Buying a Car

December 15, 2011   ·   0 Comments

http://stockssavvy.comMost of us need a car to get around on a daily basis, so it is very important to evaluate all the aspects carefully before you decide to purchase a car. These simple steps will help you to make the right decisions when buying a new or used car.

Figure Out Your Budget

The first thing to do before you even start looking for a car is to get your finances in order. There are thousands and thousands of ads posted online and in newspapers every day. It would be extremely difficult to sift through all of them if you have no idea where to start. Grab a calculator, sit down and punch the numbers to figure out your budget. Figure out how much money you have to put towards the down payment and a realistic amount you’d be comfortable paying each month. Figure out if you will need to finance the car or be able to pay for it in full with cash. With this number in mind, you can throw out cars that are out of your budget and focus on cars that you can afford.

Car Loans

The rate for a new car auto loan will be lower than it would for the used cars. Why? The lender takes a gamble on the value of the used car after a few years whereas with a new car, it will automatically lose 25-40% of the value immediately after you sign the paper. This fact makes it easier for the lender to gauge the eventual value of a new car and can offer a more secure rate. One of the big deals what car dealerships have for new cars is 0% financing loan. This promotion can make getting a new car significantly cheaper since you will never find 0% financing for a used car. But you will be locked in to an agreement for a fixed amount of time. Crunch the numbers and see if the promotion actually does save you money.

Choose a Car that Fits Your Lifestyle

Now you’re ready to start sifting through the endless ads and posts. Online you can sort results based on car model, year made, mileage, price, etc. You will have to look at all of these factors to make a decision. Have a wish list in mind of the type of car you are looking for and for what purpose it will serve. Keep in mind the types of activities you do. If you often hike or camp, a sports car isn’t ideal for you. Do you have children with car seats? Do you drive more in the city or on the highway? Keep in mind your lifestyle and choose a car that fits you. Once you have chosen a vehicle class, realize that typical car brands have a make in every class. The Toyota Camry is similar to the Honda Accord as is similar to the Nissan Altima. All of these cars are made for a similar market but will come with different features.

Inspect The Car Carefully

When you find a car that seems fitting, call the owner to schedule an appointment to see the car in daylight. Never buy a car without seeing it in person. Regardless of whether the car is being sold through a private party or dealership, examine the car with your own eyes and always test drive the car. Ask the owner a few questions about the car, such as why they are selling it, is there a current offer on the table, are they the original owner, has it been in any accidents. Then do some research on that car. Check how old is it, how does the True Market Value or American Kelley Blue Book value this car compared to the asking price to get an international comparison of the price, how many miles are on the car, what are similar cars going for? On average, a car should have 10,000 miles per year. Be aware of scammers trying to rip you off. If it seems too good to be true, it probably is. Don’t waste your time.

Be Careful What You Sign

Buying a car is not a snap-of-the-finger deal. The seller usually is looking to sell at a good price but isn’t looking to give the car away. Remember that this is a business deal for both of you. If you are buying a car from a dealer, they will sometimes want to throw in deals and warranties. Be certain you understand what you are signing before offering your signature. If you are not ready to make an offer, say you will think it over and call later. Always have the owner sign and hand over the title before handing over money.

Then it is time to enjoy your new purchase on the streets!

This is guest post by Mary from One can buy and sell cars, check our real estate section, find jobs, and much more on

Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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