Whether you are planning to buy a new or used car, it will most likely be one of your most expensive purchases. Prepare financially for it, with all the below resources.
Looking to Buy a Car?
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Quick Tips
Determine and test your budget — Remember to set money aside not only for car payments but also for insurance, repairs and registration. If financing, you can get pre-approved for a loan.
Establish your priorities — Create a wish list of features and specs. Then prioritize your needs, and shorten the list. Filter your choices based on those priorities.
Know your car's worth — If you are trading in a vehicle, maximize your trade-in value.Do market research and know your old car's as well as your new car's value.
Don't settle — Negotiate the best price. Always ask about fees, if the seller cannot explain them, ask them to remove them.
Test drive — Always test drive your options for at least 30 minutes, over different road surfaces as well as in different road conditions, i.e. hilly roads, stretch of the highway. Try to test drive your options on the same day or same conditions if possible!
If buying a used car, keep in mind:
Find reliable used cars sellers — When looking at used cars, sellers play a key factor in the success of your purchase. Make sure to look for reliable sellers, some options might be online marketplaces, auto retailers, dealerships and/or traditional private-party sales platforms. Words of mouth, and Google reviews will be great resources.
Ask questions and look at details — Get a vehicle history report, and car inspection from a mechanic; if seller refuses, they might be untrustworthy.
Resources
Create a budget — Check out our page on Budgeting for more resources.
Loan Calculator — Taking out a loan is a big and important step, use this loan calculator to plan for it.
