Buying a Car 


Steps to Buying a Car


1. Research Vehicle (Research all expenses that are associated)

            When buying a car, it’s not just about how cool, or fast, or how great the gas mileage is of the vehicle. You are about to make a very large financial decision that can cause some financial issues if you are not well educated. So you need to obviously find a car you like, then DO YOUR HOMEWORK. Research what the safety record is of that vehicle, look into how much the cost to maintain the vehicle will run you (not just an oil change), and the insurance to even drive the car. This is your time to really look into what the car is ACTUALLY going to cost you, versus what the sticker price says at the dealership!

Extra Costs to think about:

-Safety             -Cost (Maint/Tune Ups/Gas/Tires)

-Reliability       -Insurance


2. Financing (How are you going to pay for this- DO NOT OVER EXTEND YOURSELF)

If you do not have cash to pay for the vehicle, then you will need to get a loan.

Here are a few options:

Dealership Financing-We have all heard the stories of walking into a dealership and leaving with a new car after spending only an hour. This is because car dealerships have in house money. In house money means, they are the bank and can lend you the money to buy the vehicle. Understand the dealership will charge you a higher interest rate then going to a credit union or a bank.

Bank/Credit Union Financing- This is a better option, but will most likely take more time because of the paper work involved. Banks and credit unions will want to see bank statements and pay stubs to approve the loan for your car.


3.Seach for The Car

The internet has been a game changer for people looking for vehicle, but remember it is not the only option. There are so many other avenues to research vehicles that can truly give you the information to make the right decision. Magazines, newspapers, and used car lots are some other ways to search for a car. Just remember, it isn’t just the car you should be searching for, but look at the benefits of USED verse NEW. Depreciation, warranty status, history of the vehicle are all things you should also be searching.



4. Negotiate the Deal

Do not accept the price that is listed as the end sales price. It’s important to negotiate the deal. By this time, you’ve researched vehicles and now have a good understanding of what it will cost you in other expenses, what comparable vehicles are going for, and you have done your homework.


Ways to negotiate the deal:

- Check KBB (Kelly Blue Book: National Average of vehicles dating back to 1985) This will let you know roughly how much you can expect to spend for a car. Bring this with you.

-Use Comparable and show the seller (from your online research/ dealerships/paper)



5. New Car Pros



-Pride of owning a brand-new car

-Service you receive and experience

-Easy in house financing


New Car Cons

-Depreciation immediately after driving it off the car lot

-There’s always some kind of hidden Fees

-Buyer’s Remorse

-Higher than normal monthly payment


 Old Pros

-Greater savings

-Smaller loan amount

-The extra money you saved can be used for an investment


 Old Cons

-Harder to get a BANK Loan

-Don’t know history of the car

-Might not come with warranty


Things to Think About:

  • Cash-How much cash do you have?
  • Financing- How is your credit
  • New or Used
  • Value of new car dropping right off the lot
  • Warranty- (New car comes with warranty; used could have extended warranty)
  • Expenses- Think about the gas, tires, oil changes, fluid changes, and insurance maintenance, implications of driving record (Can I really afford this?)
  • Signing the title so it is valid
  • Check car’s history with outside resources (Car Facts)
  • Preparation, check out car insurance rates before buying