Buying your first car gives you a sense of accomplishment as it is a big moment in a person’s life. Your first car is not just a means of transport; it is a memory that you always cherish.
Buying a car is a long process. You have to look for options according to your budget, compare their specifications, find a reliable dealership, and after going through it all, you reach the stage of buying the car.
If you are a car enthusiast, then you probably don’t need much help through the buying process. But, if you are buying a car for the first or are not well-versed with the nuances of the automotive sector, then we are here to make this process easier for you.
Buy a New or Used Car?
The biggest dilemma of the car buying process is whether you should opt for a new or a used one. You might think that it depends on your budget, but there are several other considerations that you should make before reaching a decision.
There are certain advantages associated with buying a new car since there is no maintenance history, and they are easier to finance. Plus, they come with the most advanced technology and features.
However, there are drawbacks associated with new cars that you can avoid by buying a used one. The first and foremost is that you avoid a considerable chunk of depreciation.
Let’s say you buy a new car for $30,000, and three years later, its resale value comes down to $15,000, so you lost $15,000. However, if you buy a used car, it will depreciate more slowly.
Other than that, you have to pay less for insurance, registry renewals cost less, and you can get a better model for less price.
Regardless of what your decision is, there are some important questions that you should ask your dealer before you hand over the check.
Buying a new car
1. What are the costs associated with this car?
You may have made your budget keeping in mind the apparent cost of a car. However, there are numerous other costs associated with buying a new car, such as sales tax, registration fee, documentation fee, etc. that add to your bill.
The documentation fee is the amount your car dealer charges you for filling out the contract. In some states, this fee is regulated, but in some states, it can go as high as $600. So, ask your dealer for the purchase agreement beforehand, which contains the details of all the associated costs.
2. How many miles are on the new car?
This question may seem strange, considering that it is a new car. However, it is an essential question because new cars also have some mileage on the odometer. It is because these cars are taken on a test drive after production.
Other than that, some cars are on dealer trades as well. Dealer trades mean when dealers swap cars that they think will sell on their location faster. The swap can sometimes add to the mileage if the dealers are located far away.
There is no precise answer to what mileage is acceptable, but the general rule of thumb is not to buy a car whose mileage is over three digits, i.e., 100 miles or above. In the case of high mileage, dealers offer more discounts to make the deal lucrative for the buyers.
3. What is covered under warranty, and how long is the warranty?
If you want to ensure your peace of mind, then you need to enquire about your car’s warranty. There are several things involved with the warranty.
When you buy a new car, you get an ‘auto warranty’ that is a warranty from the manufacturer. However, it is important to know the duration of the warranty and what damages does it cover. Other than this, you can ask for an extended car warranty or vehicle service contract.
Both are mostly similar and are offered by dealers or third-party companies and have nothing to do with the manufacturer. They are better since they cover more mileage, typically around 200,000 or more.
Asking about the warranty is important when you buy a car because the cost of car ownership increases once the warranty and free maintenance periods are over.
Buying a Used Car
1. What is the source of the vehicle?
In the case of a used car, you must ask where the dealer got the car from for security purposes. It will also give you an idea of its past usage. There can be multiple sources, such as a trade-in or an auction, etc.
In case it was sold by some other person, ask for the previous owner’s number and name for security reasons.
2. Can I see the history of the car?
Before you buy a used vehicle, you should be well aware of its history, and you can’t just rely on a dealer or the previous owner to tell you everything. So the wise thing is to get your hands on the maintenance report using the car’s Vehicle Identification Number (VIN).
The report will give you all the details such as miles driven, the contact information of the previous owner, history of past damages, accidents, and maintenance records.
3. Can I show it to my mechanic?
When buying a used car, you should not make the payment until you are fully satisfied. Since a dealer wants to sell it, their opinion can be biased. Hence it is recommended to get the car inspected from a trusted mechanic to get a more accurate report on the car.
4. Have you performed any maintenance on the car?
Dealers themselves do repairs and maintenance on cars before selling them. So, asking the dealer about the maintenance record will give an idea if you need to get any repairs done in the future or not.
If the dealer has already done extensive maintenance on the car, then you won’t have to spend a lot in the future. While you can handle minor repairs yourself, major repairs can cause a big dent on your wallet.
Make an informed decision
It a daunting process to buy a car, but there are ways to make it simpler. You need to do your research and ask the right questions before you make the purchase. A car is not something you can sell quickly, so you must think before you invest in a car.
