If you are buying a new or used car, doing a little research can help ensure the best use of your money. Be sure to take your time and compare prices.
Buying a vehicle is an important purchase; it is usually also a complicated transaction comprising a contract, financing and a guarantee. It is important to carefully consider each of these aspects of your decision. You should also know some specific protections that the law offers you. Alway look for cars with low monthly payment to get easy help for your wallet
You can consider car safety when deciding on a purchase. Impact test results are available at www.nhtsa.gov/ratings .
When purchasing any vehicle, whether new or used, you can investigate whether the vehicle has unresolved manufacturer's safety repairs and also its history of safety repairs. Visit safercar.gov for more information.
Looking to Buy a Car
First, you have to choose between buying a new or used car. A new car may cost more, but it will have a longer warranty and it will not have a history of abuse or neglect. However, new vehicles can be devalued (lose value) almost immediately upon leaving the dealership, meaning that it would be best to find a well-maintained used vehicle - this could be a good purchase.
Consider the price of the car. This seems obvious, but new or used vehicle dealerships can lure you in with a low monthly payment. Be sure to see the total price of the car, including interest.
Advertisements in newspapers and on the Internet can give you an idea of the different prices. The Texas Department of Motor Vehicles website It has information on prices of new and used vehicles. You should also look for rebates and other incentives that might be available with a new car purchase. There are a variety of sources on the Internet, such as the "Blue Books" that dealers use to determine used vehicle prices. Many people sell their used vehicles by themselves. Buying the car directly from the owner often means paying a lower price than buying it from the dealer. Also, buying from the owner means you can ask about the full history of car repairs. Used vehicles that dealerships offer may cost more, but may offer services such as financing or warranties, and may also be able to provide you with the vehicle's history.
You should ask the dealer for vehicle history and repairs, even if it is not a complete list. If the merchant does not provide you with a report, you may be able to obtain one through a private service that investigates insurance claims.
It doesn't matter if you buy directly from the owner or from a dealer, consider:
- drive the vehicle to test it;
- take it to the mechanic of your choice or ask a mechanic to visit the lot for a pre-sale inspection; and
- do a title inspection.
If the merchant doesn't allow you to do these things, you may want to consider looking elsewhere.
Close the Deal
Make sure that when you make your decision you know the final price of the vehicle, with everything you want and nothing else. The dealer may offer you many assorted products, such as extended warranties, nitrogen inflated tires, smoked glass windows, interior and exterior protection, and other products. These products will affect the price of the vehicle and you can decide that you do not want or need them. If you don't want the products or services, simply refuse to buy the vehicle or negotiate the price of the products.
You are going to have to sign a purchase contract. The contract protects both the buyer and the dealer, so don't stop taking this step or rush.
When examining your contract, check the following:
- That you have read and understood everything it contains.
- If you have blank spaces.
- If it contains clauses or terms different from what the seller told you.
If the seller has made written changes to you and you agree, make sure you and the seller initial the new terms.
If you are financing the car, make sure you understand:
- how much you are going to pay and the frequency of your payments;
- how many payments you have to make in total;
- how much will you have paid in total; and
- What is the annual interest rate.
Do not assume that you are going to finance your purchase through the dealer. Sometimes you can get better financing terms from your bank or credit union. You should also check your credit before you go out to buy a vehicle as this may affect the interest rate they offer you. By comparing prices, you may be able to negotiate a more favorable offer. Please note that Texas law sets maximum interest rates to finance used vehicles. Rates change based on the age of the vehicle and the amount payable.