What Are the Steps for Purchasing a Car?

When you buy a car you must first establish a car buying budget and then attempt to find a car that meets your needs but falls within your budget. You should research the cost of comparable vehicles, get insurance quotes and make you sure you understand the sales agreement before agreeing to buy a car.

Financing

You can either buy a car with cash or finance it. Aside from the actual cost of the car you must also take into account the cost of the tag, transfer of title and any other legal expenses that car buyers must pay in your state. If you lack the cash to buy a vehicle you can apply for financing either through a financial institution or through the dealer. Dealers sometimes offer financing for buyers with very poor credit who cannot qualify for loans at banks but the payments are typically very high. Credit unions, which are not-for profit financial institutions, generally offer the lowest rates on car loans, so if you are a credit union member you should find out if you qualify for a loan. Get prequalified by submitting a preliminary application so you know how much you can afford when you start looking for cars.

Choose a Car

Begin to look for cars at local dealerships, in classifieds and online. You can look for a stylish vehicle, but do not forget to take into account the practical side of owning a vehicle. If you live in an apartment complex where you can only park compact cars, do not buy a large vehicle. If you live in a metropolitan area with heavy traffic, you should consider the cost of gas if you buy a vehicle with poor fuel efficiency. Research cars online to find out about the overall performance and customer ratings before you make your choice.

Negotiating

Sellers tend to price cars higher than the vehicles are actually worth, so you should attempt to negotiate the price down before agreeing to make a purchase. You can research the typical cost of a car online by visiting the Kelley Blue Book website. The blue book includes a directory in which you can find out how much every make and model costs adjusted for age, condition and geographical location. You can negotiate better if you have done your homework. If a seller refuses to drop the price of an overpriced vehicle then find another similar vehicle from another seller.

Complete the Sale

When you buy a car, make sure you read the warranty before you leave the lot. Some warranties offer very limited protection, so make sure you understand the terms and conditions of the coverage before you make the purchase. Additionally, get a quote from your insurer before completing the transaction as the insurance costs vary greatly based on vehicle types and safety features. You should not complete a purchase until you know the total cost including insurance. If you buy a car from an individual, you should contact the department of motor vehicles in your state to ensure you complete all paperwork necessary for the purchase.