How to Buy a Used Car...Step 1

I decided to start a new series of posts titled, "How to Buy a Used Car." This is the first installment of that series, or simply Step 1.

Starting at the beginning seems like such a no-brainer, but surprisingly many folks make the mistake of starting at about step 5 or 6, or even worse at the very end. So, we are going to start at the beginning and work our way through the used car buying process. So by now, you must be wondering just what is the first step in buying a Used Car, is it reliability reports, interest rates, pre-purchase inspections??? Not yet on those...

Step 1. Know Thine Own Self

Yes, YOU are the first step in the car buying process. What are YOUR needs? What are YOUR wants? What is YOUR credit score? What is YOUR budget? Step 1 is all about YOU.

You need to ask yourself what it is that you need from the car that you purchase. Do you need 4-Wheel Drive? Is gas mileage a priority? Do you need room for a certain number of passengers? Do you haul anything that might need special consideration? Do you need room for a baby seat? There are lots of questions that you can ask yourself about your needs, and you need to determine your needs BEFORE you start shopping for a car.

You need to ask yourself what it is that you want from the car that you purchase. Do you want a Sunroof? Do you want an entertainment package? Do you want any aftermarket accessories? Do you want a specific color? There are again, lots of questions that you need to answer about the things that you want from the car that you purchase.

The key to those 2 questions is that you need to determine which items are needs and which ones are wants. Needs are the things that you have determined are things that you can't live without, and the wants are things that you can take or leave if you can't necessarily find them. The reason that you should ask yourself these questions is simple. IF YOU DON'T MAKE THESE DECISIONS, THEN WHO WILL????? Is a pushy salesman going to make these decisions for you? Is your teenager going to push you into buying a car that they think is "Cool"? If not you, then who? Many dealerships prep their sales people by telling them to, "Sell the Sizzle, not the Steak." Their goal is to make the buying process as emotional as possible. Many times buying on emotion can have horrible results in the long run. I can't tell you how many times we have seem folks that are looking to trade a vehicle that they bought just a few short weeks ago because it just doesn't meet their needs. They didn't buy, they got sold.

You need to know your credit score. This has been advertised so much on TV and radio and internet that there really is no need to explain why. There are several sites that you can find out your credit score for free. Use them, and find out where you stand. Your credit score will better prepare you for your purchase. Your score will also help determine if you need to secure help from a cosigner.

You need to ask yourself what's your budget. You need to determine what YOU can afford prior to buying. Don't let someone try to tell you what you can afford. You need to sit down and do your own math. Work out your budget, and remember to consider that your insurance may go up as well. Work out what you are comfortable with, and then shop with that number in mind. How much can you afford to pay down? You need to let your lender or the dealer that is helping you secure financing how much you can afford to pay down. Your down payment is just as critical in calculating your monthly payment, and your credit approval as your credit score. Remember when some stores used to offer lay-away service? You couldn't put items in lay-away without at least putting some money down for them to hold it for you. Unless you have a very high credit score, you should plan on putting some money down toward your purchase.

Always remember, it's your money. Shop wisely.

Step 1 in the car buying process...
Know Thine Own Self.