PMI Mortgage Center

More people are starting to consider the merits on buying used cars. New cars depreciate so quickly that a used car can make more financial sense. When you are trying to decide between a new car or a used car think about how much money you can save. Most cars lose two thirds or more of there value in the first five years. Depending on how a car was maintained it could have many good years left after four or five years. Here are a few things to remember when purchasing a new or used car.

#1 Do some shopping around before making any quick and hasty decisions. Visit several car dealers and test drive various cars. You want to go to several dealers because you want to compare price, selection and condition. This first step is strictly to gather information on possible choices and prices. Then go home and get on your computer and search for information on your choices of used cars. Compare safety ratings, options, selection, reliability, miles and pricing. OK, now you should go over all that info so you can start to narrow your choice of used cars.

#2 Determine how much you can afford or want to spend on your car. Regardless if you are writing a check for your purchase or finance at the dealer that decision should be made before going to the dealer. If you are planning to finance your used car purchase you should talk to your bank or credit union first. Car dealers and salesman have a way of talking you into spending more than you planned.

#3 When you arrive at the car dealership don’t make a decision until your give the car a once over. Use a car buying checklist for the things that you need to check when buying a used car. You will want to check the engine, the body, vehicle history and the transmission. The test drive is critical to buying a car so be sure you go for a thorough drive before you decide. Drive the car at various speeds and make sure you are comfortable driving the car.

#4 Plan your car buying steps and follow your plan. In the earlier steps you decided what was right for you both financially and car wise. Stick to your predetermined price and do not allow yourself to be swayed by the car salesman. Remember the car salesman’s job is to sell you a car by whatever means possible. Follow your plan and stay within the guidelines that you have set before you go to the car dealer.

#5 Do not purchase the used car unless you are clear on all the details. Make sure that you think logically when buying a used car, after all this is not something you do every day. The process of buying a car can overwhelm most people and they often use emotions to buy a car. If you are not completely sure about the car or the deal go home and think it over. It is critical that you are completely sure of your large purchase. Unlike other major purchases there are no provisions to return a car after you take delivery.

Buying a good used car can save a lot of money, but buy a bad used car and it can haunt you for a long time. When it comes down to it all that anybody wants when they buy a car is to get a good car at a good price. We all want to be sure we got the best price on a car. Even though it is a used car it is important that you spend your hard earned money responsibly. Ultimately you are the car buyer so you are in control.