Buying a used car can save you thousands in depreciation, but it requires careful preparation to avoid inheriting someone else's problems. A successful purchase depends on setting a realistic budget, verifying the vehicle's history, and conducting a professional inspection before any money changes hands. 1. Financial Planning & Budgeting
Factor in "hidden" costs beyond the purchase price, such as registration, higher maintenance for older vehicles, and insurance premiums. what to know before buying a used car
Aim for a 20% down payment, a three-year financing term, and total car expenses (including insurance) that equal 8% or less of your monthly income. Buying a used car can save you thousands
Set aside approximately $1,000 for immediate repairs, as many previous owners defer maintenance right before selling. 2. Research and Verification Financial Planning & Budgeting Factor in "hidden" costs
Use the Kelley Blue Book to find the fair market value so you don't overpay. 3. DIY Physical Inspection
Perform these checks during daylight to spot potential red flags.