Now that cars are becoming less scarce, you might be ready
to replace your existing vehicle. But, you may be asking these questions. How
do I buy a car? Where to start? What do I need to know?
First things first: get pre-approved for financing before you
go shopping. Knowing exactly how much you can afford before you decide on a car
will help keep your payments reasonable. Of course you'll want to check your
credit union for the best deal on car loan rates!
If you're buying a new car you'll want to shop around and
find the car that meets your needs. If you stick with buying just for
your needs, you'll probably end up saving money in the end.
Another tip to remember when buying new: always be prepared
to walk away if you don't think you're getting the best deal.
Since new cars lose most of their value as soon as they are
driven off the car lot, you may see a bigger value in buying used cars. Here's
what you need to know before you buy used:
- if the
car was ever involved in an accident
- previous
mechanical problems
- the
maintenance history of the car
A CARFAX report will help you with all of that information.
You'll want to know everything that could have gone wrong with the car and this
is the most reliable resource.
Use resources like KBB.com,
Edmunds.com or NADA.com to get an idea of the average price of
the car you are interested in.
A good rule of thumb is to always have a mechanic take a
look under the hood before you sign on the dotted line. You'll want him to be
sure there are no unknown problems before you buy.
Lastly, be sure to check into GAP insurance to be
sure you are covered.