Being in the market for a new car is a thrilling experience. If you’re ready to buy a vehicle, you might also know that purchasing one is a serious decision.

As consumers, we’re always tempted to buy the newest, latest, and supposedly greatest iteration of a product. This also applies to automobiles. At the same time, buying a car is a much more significant investment than a smartphone.

That’s why buying pre-owned remains a sensible option when car shopping. Buying a used car, on average, is much cheaper than going for a brand-new model. It’s an economical choice for first-time and veteran buyers alike.

Shopping for a car always involves research. By defining what you want from your next vehicle and avoiding common pitfalls, you can ensure your purchase will serve you well for years. Here are some suggestions to get you started.

Remember Your Budget First

For many people, buying a car is one of the most significant purchases someone can make. It’s essential to figure out how paying for a car will affect your budget.

How much car can you afford? There isn’t a definite answer to this. Edmunds, a car shopping resource, recommends not exceeding 10% of your take-home pay as a baseline for a monthly car payment. However, your budget may vary depending on your other living expenses and financial obligations.

Your monthly payment should include interest if you’re financing the vehicle through a loan. Generally, you can pay less monthly by signing on for a longer-term loan. On the other hand, doing this may increase the total cost of the car compared to a shorter term.

Here are a few loan calculators to give you an idea for a car budget. There are also other costs associated with paying for a vehicle, such as:

• Car insurance
• Registration
• Fuel costs
• Maintenance and repairs
  

As you can see, paying for a vehicle involves more than the sticker price. You must also factor in general maintenance and trips to the mechanic if something goes wrong.

What To Do Before Seeing Any Cars

When shopping for a pre-owned vehicle, always research before settling on a specific make or model.

It’s always good to have a general idea of the kind of car you want and find several models that best fit your needs. Ask yourself some questions to set your expectations:

• Do you have a range of model years in mind?
• Is your primary use commuting, outdoor recreation, or hauling?
• What features do you need with the car—and which ones can you do without?
  

Your selection may be limited to what is available at the car dealership or how far you’re willing to travel for a particular selection. After you’ve narrowed down your top picks, you can start looking up dealerships or sellers most likely to have what you want.

Conduct an online search for franchised dealerships or use an aggregator site (like Autotrader) to get a feel for the selection in your area. Dealerships with websites may have an online inventory you can browse. Aggregator sites collect data on listings from dealerships and private buyers, which you can use to find what you want.

An online search makes finding a vehicle that can fit your budget more manageable. Sort your selections by price, and you can compare the starting price of a car to how much you’re willing to pay.

You’ve Decided on a Model. Now Make Sure It Works.

After comparing models and choosing what meets your needs, you’re almost ready to visit the seller. Since you’re buying a pre-owned vehicle, you’ll have to take some precautions to verify that you’re investing in a car, not a lemon.

Here are a few ways to check your pick's road-readiness.

Vehicle History Reports

Requesting a vehicle history report can give insight into your prospective pick’s functionality. This report lists any potential defects the car may have and whether it has been involved in any accidents or damage.

Do an Internet search to find vehicle history report services. You will use the car’s vehicle identification number (VIN), which you can get from the dealership or seller. If applicable, the vehicle history report will include items like:

• Flood damage
• Registration history
• Number of previous owners
• Mileage verification
• Recall notices
  

Another important tag to look for is if the car has received a “salvage title.” This indicates that an insurance company has deemed the vehicle a total loss and that replacing it rather than repairing it would be better.

Some sellers may provide this report for free, or you may need to pay for one independently as part of your search. Either way, getting a report may be worth the extra cost to prevent unwelcome surprises after closing a deal.

Mechanical Inspection

Beyond a vehicle history report, you may also want to hire a mechanic to inspect the vehicle. A mechanical inspection on a used car is a good idea, as it will provide insight into the vehicle’s reliability and any potential repairs you may need to consider in the future.

Hiring a mechanic for a pre-purchase inspection may feel old school and even add to the initial cost. However, it might be a good idea, especially if you are working with a private seller.

Another advantage of hiring a mechanic is gauging a seller’s trustworthiness. If the dealership or seller hesitates to have an outside professional look at the car, this might be a sign that your prospective purchase might have deeper mechanical problems.

Consider Certified Pre-Owned

You can potentially bypass a mechanical inspection, too. If you are buying from a dealership franchised with a major automaker, they already have a program to ensure a used car’s reliability right off the lot. It’s known as “certified pre-owned,” or CPO.

A CPO vehicle has undergone a factory mechanical inspection and reconditioning, ensuring it meets an automaker’s serviceability standard. Also, CPO vehicles come with a standard warranty, ensuring you won’t pay a ton if you need repairs.

If you choose this route, make sure you are looking at cars explicitly labeled as certified pre-owned. Also, carefully review the terms of the attached warranty so you are familiar with what it covers.

As you can see, buying a pre-owned vehicle involves a lot more than picking something that looks cool. Since a car will probably be a big part of your daily life, it is always a good idea to do your due diligence before signing any dotted lines.

When you’re ready to take the next steps in your car-buying journey, First Florida is here for you. Apply to get pre-approved for an auto loan, or try out AutoAdvisors to simplify your search for your dream vehicle.