7 Tools for Smart Car Purchases

This guest post is contributed by Raine Parker, who writes on Accounting Degree.

Buying a car can be a daunting task, especially for those younger drivers who’ve never done it before. Every commercial seems aimed right at you; every giant billboard advertising low interest rates seems too good to ignore; every new car you see on the road sends a spike of jealousy through your system. However, it’s important to sort through the mountains of conflicting information and do your homework before wading into the auto market. If you rush in, you might wind up playing the sucker for a less than reputable dealer, but if you’re prepared, you’ll be able to make a smart financial decision that meets your automotive needs. Before heading to the lot, take advantage of these online tools:

Carfax: If you’re buying a used vehicle, it’s a good idea to check out the history, and Carfax is one of the best ways to do it. Founded in 1984, the national company provides accident and problem reports on used cars and light trucks manufactured since 1981. Four of their services are free: the Lemon Check, the Record Check (detailing how many records they have for a particular vehicle), the Recall Check, and the Problem Car Alert. You might also want to consider ordering a full report on your vehicle. All you need is the VIN, and it’s a worthy investment to avoid buying a clunker.

Cars Direct: This site offers prices on tons of new and used vehicles, as well as reviews and comparisons between models.

Auto Trader: The online arm of the car magazine that’s been around since 1977, this site has a wealth of listings and research tools for car buyers, as well as primers on loans and insurance to make sure you get the best price available.

CarMax: CarMax is the biggest used-car retailer in the country, and they’ve been around since 1993. The company’s driving thrust is that every listing includes a flat price, so that instead of the typical bartering process that happens at the dealership, you simply pay the stated amount. If you’re interested in avoiding the back and forth of haggling with a salesperson, this could be the place for you.

Edmunds: Edmunds.com is an invaluable resource for car buyers, with loads of reviews, news, tips, and advice that are helpful no matter how much experience you have. They’ve got a variety of calculators, including one to determine loan amounts and one to figure out the true cost of owning a vehicle.

Consumer Reports: The print version of Consumer Reports has been around since 1936, and their years of experience have created an enduring credibility for their name. They provide impartial reviews of a host of products, including cars and trucks, and they’re a must-read for any buyer. The site is subscription-based, but they offer several different plans based on how long you plan on accessing the site.

Craigslist: For sheer tonnage of private sellers, it’s hard to top Craigslist. The free site, which operates like a giant classified section, can be a good place to find local sellers that other aggregates might have missed.

These sites also provide financing information, which you can also get from the dealer, but it’s best to have your financing worked out before you head to the lot. Know what you can afford and how much you will borrow. Make arrangements with your personal financial institution or shop around, but the bottom line is that you need to be prepared as you shop. Use these tools to refine your search and plan your investment, and before you know it, you’ll be behind the wheel.

Raine Parker writes on Accounting Degree. She welcomes your comments at her email Id: raine.parker6@gmail.com.