Here’s a practical 5-step guide to buying a used car that’s right for you.
Understand your needs: Be honest with yourself about how you will use a car most of the time. If you try and get a vehicle that can do everything, it will also cost you everything. A smart option is to analyze what the car will be doing 80% of the time. If it will be doing family duties, then choose one accordingly. If it will spend that time off-road, or hauling lumber, pick a truck. Leave your wants aside and concentrate on your needs.
Set a budget: Most of us have to worry about finances. And a car is never an investment. So if you’ll be borrowing money, ensure that your monthly payment is not over 10% of your take-home pay. Keep another 10% for maintenance, fuel, and insurance. Used cars usually need more attention. So prepare accordingly. Also, keep the loan term between 36 – 48 months. Only buy what you can afford.
Find a car: There are several websites that make the job of finding the right used car easy. Filter your search by price, vehicle type, options, etc. Choose brands known for reliability. Shortlist five cars by reading reviews from experts and owners. Order vehicle history reports of cars that interest you. Check those thoroughly and narrow your selection to three cars.
Test-drive: Schedule test-drives for all three cars on the same day. That way, you have a reason to leave the test-drive and can easily compare all cars when your memory of them is fresh. Ideally, do it on a weekday morning and schedule it with the dealership’s internet department. Let them know you’re testing but not buying immediately. Take your time and examine every aspect in detail. Try and recreate the condition it will experience with you.
Review: After completing all test-drives, if you’re still unsure, repeat the steps again. If you know which one you want, hire a mechanic to inspect it. If they give you an all-clear, use all the information collected to start negotiations. Ensure financing is in place. Be practical, but ensure you buy something you like.
