When considering the purchase of a car less than five years old, it is recommended that customers think about looking into pre-owned vehicles. Most banks, speaking generally, are not usually willing to give customers a loan for a car that is older than four or five years. There are many local used car dealerships in or around most towns or cities where customers considering a purchase can go to get information. Dealers of pre-owned vehicles are always happy to sit down and talk with perspective buyers.
A good rule of thumb for customers is to calculate how much they can afford to pay per month for their new car, and to be diligent in sticking to that amount. Too many people realize too late that the amount of the monthly payment they agreed to is going to be a difficult stretch for them, and their budget. After settling on a comfortable monthly payment amount, the customer should then think about their financing options. Many used car dealers as well as manufacturers offer their own financing to customers. It is also perfectly fine for the customer to have their financing already in place when they first begin their car search.
Most people will walk into a used car dealership already set in the knowledge that they do not want to spend more than $5,000 on a used vehicle. Customers must also take into consideration the necessary extra costs such as tax, license, insurance, registration, and other fees that could easily add about 10% to the cost of the vehicle. If the customer chooses to go with the financing offered by the used car dealership, a representative of the dealership will be available to sit down with them to explain the workings of the loan.
Other important points to keep in mind when researching and buying a new or used vehicle is that any car that is considered a sports car, especially those with more powerful engines that are labeled supercharged or turbo, will increase insurance rates. When searching used cars for sale, it is also imperative to try not to settle on a car that is just under the price limit the customer has set. It is too easy, and common, for that price to go up over the affordable limit when all is said and done.
Another sensible recommendation to those considering the purchase of a vehicle is to make a list of their needs when it comes to daily use of the car. Statistics show that most people, when car shopping, are not sure of what they need, or want. Therefore, many end up spending too much for a car that, in reality, will not fit into their daily routine. Some thought should be given to reliability, good resale value, ease of parking, and good gas mileage. After this list is complete, adding the cosmetics is perfectly fine. Size, color, type of transmission, and so forth can be put on this list. When the two lists are completed and combined, the customer will have a guide directing them to the type of car or cars they would like to consider.
Another consideration that is a must is the fact that throughout their years of use most used cars will have three owners. Someone purchasing a car that has had two previous owners needs to be able to know for certain what kind of shape the car is in. Most good used car dealerships have put the car through the shop, so to speak, and have given it the clearance to be put out on the selling floor. Smart shoppers, however, will go the extra mile and do a little more research on the car for their own peace of mind. Vehicle history reports are available through several different companies that are made easily accessible to people considering a purchase. It is certainly better to know the detailed history of a particular car before the purchase has been made. This is how to avoid a possible problem later on.
Another good rule of thumb is to test drive the car. Purchasers do not want to find, after the fact, that they cannot get in or out of the car without bumping their head on the doorframe!