1. Setting a Budget Before you start looking for a car, it’s important to determine how much you’re willing to spend. Budget for not only the cost of the car itself, but also taxes, insurance, registration, and possible repair costs.
2. Deciding Between a New and Used Car New Car: Benefits include a warranty, the latest technology, and no issues with previous owners. However, the price will be higher.
Used Car: Costs less, but there are risks with the condition of the car, especially if you don’t inspect it before buying.
3. Researching the Market Sites to find cars: Cars.com Autotrader Carfax – Also provides vehicle history reports Craigslist – Local classified ads.
4. Vehicle History Be sure to request a Carfax or AutoCheck report before buying. These reports include information about accidents, service, number of owners, and mileage.
5. Inspecting the Condition of the Car If you’re buying a used car, have it inspected by a qualified mechanic. This will help identify hidden defects.
6. Financing Car Loan: Many dealers offer car loans. You can also get a loan from a bank or credit union.
Pre-Approval for a Loan: It is recommended to get pre-approved for a loan before you start talking with a dealer.
7. Insurance Car insurance is mandatory in most states. Check quotes from different insurance companies, such as: Geico State Farm Progressive 8. Registering the Car After purchasing, you must register the car with your state’s Department of Motor Vehicles (DMV). Don’t forget to pay the sales tax, which varies by state.
9. Checking Market Prices To make sure the car is priced in line with market value, use online tools such as: Kelley Blue Book – Vehicle Market Value Estimates.
10. Checking the Title If you are buying a car from a private party, make sure the seller has a clean title to prove ownership.
11. Test Drive Before buying, be sure to test drive the car. Pay attention to the smoothness of the ride, the presence of noise, the operation of the engine and all systems.
12. Negotiate the price In the United States, the price of cars is often a subject of negotiation. This is especially true for used cars. Use your knowledge of the car's condition and market value to lower the price.
13. Additional Costs Taxes and Fees: Depending on the state, you will have to pay sales tax, as well as fees for registration and obtaining license plates.
Maintenance and Repairs: Include in your budget the cost of maintenance and possible repairs.
14. Complete the Transaction If buying from a dealer, make sure you have all the documents: the purchase agreement, warranty (if provided), and proof of payment. If buying from a private individual, you will need to obtain the title and contract.
15. Dealer Purchase Considerations Dealer's Fees: Dealers may add additional fees, such as fees for paperwork and services, which may be negotiable.
This guide will walk you through the basic steps of buying a car in the US.