Saving Money Buying A Used Car

How to Save Money When Buying A Used Car

If you’re thinking of buying a used car in California, you probably need some advice. A car’s value is bound to depreciate over the years, so it’s a wise decision to buy a used car instead of a new one. You can follow the steps listed below while buying a used car in California.

1. Set Your Budget

You should not even think of buying a car before deciding how much you can spend on a car. Decide, whether you’ll pay all by cash or get a loan. Take your monthly payments into account like rent, credit card payments, etc. as you don’t want your car payments to cramp up your budget.

If you have a bad credit score, it’s a good idea to make payment in cash. By doing that, you can avoid paying a high-interest rate on your car loan.

2. The Kind Of Car

Decide what type of car do you want to buy. You can start looking on the web what kind of cars are available for what price. You’ll get a fair idea about what can you get within your budget.

3. Where To Buy?

You buy directly from a private party or go to a dealer. You can have an easy time buying from a private seller as they’re not professional negotiators.

There are two types of dealers, those who sell used cars only and those who sell old as well as new cars. Buying from a dealer offers a number of benefits and it’s better to buy a car from a dealer instead of a private seller.

4. Test Drive

Go to the dealer and test drive the car that you like. Reputed dealers avoid selling cars with any major issues. If the car feels good during the test drive and does not make any terrible noises, the chances are that it is good.

Ask the dealer to show the inspection sheets of the car as a lot of dealers get the cars checked by their own technicians. If the dealer does not have the inspection sheets, make sure you get it checked by a mechanic.

5. Negotiate

Talk about the total price of the car and don’t look at all aspects of the deal. Negotiate as hard as possible even if the dealer feels that the price you’re offering is ridiculous. Move up the price slab just a little bit at a time. Once you settle down at a price you feel to be right, then you can discuss with the dealer about the financing, warranties, and extras.

6. Finance & Insurance

Dealers make most of their profits by selling insurances, warranties, loan packages, anti-theft devices, etc. You must realize that the negotiation hasn’t come to an end by settling at a price for the car. Compare the prices of the products you’re interested in and offer what you would like to pay.

7. Paperwork

Buying from a dealer makes the paperwork very easy for you. The dealer will take care of everything from registration, licensing, taxes, etc. Make sure that you read the contract thoroughly before you sign it. The dealer will give you a smog certificate as the seller is legally bound to do so under the emission control laws in California.

Tips To Get A Good Deal While Buying A Used Car

– Try to get financing from a bank or some other financial institution. Don’t forget to compare the finance charges to save money.

– To avoid paying any late fee or penalties to the Motor Vehicle Department, make sure that the car’s California registration is still valid.

– Calculate everything from the total price of the vehicle, insurance, warranties, extras, interest, etc. Cut away everything that you feel to be unnecessary.

Used Car Buying Checklist

– Car’s Condition
– Total Price
– Written Contract
– Paper Work
– Warranties
– Smog Certificate

Final Words

Buying a used car is a wise decision for a number of reasons. Besides being pocket-friendly, the decision is eco-friendly as well. Set your budget and never disclose the upper limit to the dealer. Negotiate at every point where the money goes out of your pocket.

Buying from a dealer has a number of advantages over buying a used car directly. Most dealers check the vehicles thoroughly and avoid selling any vehicles with serious issues. Dealers take care of the paperwork which makes the process easy for you. Always look at the total price you’re paying for the vehicle.