SMS 126 – Used Cars Part 2 – How to Buy a Used Car

How to buy a used car:

  1. Realistically access your transportation needs – not a status symbol, narrow your search make/model
  2. Set a budget and stick to it – maximum loan 3 years, 40% to 50% of your annual income tied up in cars
  3. Do your research – become an informed buyer, know your prices & search out known problems
  4. Only buy from a dealership – buy a previously leased car, don’t buy somebodies problems – know why the car is for sale
  5. Test drive as many as possible – you have to drive a bad one, check the car proof, take it home and wash it
  6. Beware of a deal that’s too good to be true – be willing to pay fair market value (the seller knows more than you do)
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