How to Buy a Car: A Background Check Essay

Introduction.

Buying a car can be an intimidating task, regardless of whether a person is a first-timer or not. There is quite some valuable information one needs to know before making that final decision to buy a particular car.

The most important thing that a person must decide first is whether he/she wants a used car or a new car. If the person is looking to buy a used car, a background check is very important. This will include knowledge of the number of preceding owners, previous mechanical problems and accidents and finally, past maintenance of the car. A used car can give a person a great deal as the car may be well maintained and still be in an excellent condition.

Used cars can be located easily from dealers, used car websites and even from new car dealers. It’s important to have a trusted mechanic inspect the car to check for any damages. One should take time to read the paperwork before signing any document to avoid hidden buying conditions which might be problematic in future. It is also important to make sure that all finances are ready for the purchase.

If a person decides to buy a new car, it’s important to determine if he/she can actually afford it. Besides the cost price, another cost that might have a great impact on a person’s finances includes; Insurance cost, repair and maintenance, registration and licensing and fuel. After determining that one can afford the car, it’s now time to decide the type of car he/she wants. This is largely influenced by your lifestyle and the purpose for which one is buying the car.

Price determination is a key factor to consider before making the final deal, it is important to compare prices from different dealers and consult widely from recent owners of that particular car one wants to buy. This is to ensure that a person gets the best deal. A new car costs a lot of money; in this case it’s important to determine whether one will be buying the car from personal savings or from a bank loan. It is at this point in time that one needs to make sure that all financing processes are through and that the money is available for the car purchase.

Test drive is another important step that should never be overlooked. Arrange with the dealer to have a test drive one week before making the final decision. Ask for all available literature and manuals to read prior to purchasing. This gives you ample time to decide and ask any question that one might be having in regards to the car that he/she want to buy.

Finally, after the person is certain that he/she is are ready to buy the car, it’s now time to put the pen to paper. Check and counter-check all the documents and make sure that any agreement is put down in writing before signing any document. Sign on the dotted line on all required documents. Finally, hand over the cash or cheque, as the dealer hands over the keys. The final step is driving the car home.

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Bibliography

IvyPanda . "How to Buy a Car: A Background Check." September 21, 2021. https://ivypanda.com/essays/how-to-buy-a-car-a-background-check/.

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5 Tips For Buying A Car The Smart Way

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Chris Arnold

A For Sale sign is displayed on the window of a car.

New cars these days have better safety features and more tech gizmos than models from a decade ago. And let's face it: Trading in a beat-up clunker with grimy seats is an enticing idea.

But many Americans make big mistakes buying cars. Take new car purchases with a trade-in. A third of buyers roll over an average of $5,000 in debt from their last car into their new loan. They're paying for a car they don't drive anymore. Ouch! That is not a winning personal finance strategy.

But don't worry — NPR's Life Kit is here to help. Here's how to buy a car without getting over your head in debt or paying more than you have to.

1. Get preapproved for a loan before you set foot in a dealer's lot.

"The single best advice I can give to people is to get preapproved for a car loan from your bank, a credit union or an online lender," says Philip Reed. He's the autos editor at the personal finance site NerdWallet. He also worked undercover at an auto dealership to learn the secrets of the business when he worked for the car-buying site Edmunds.com . So Reed is going to pull back the curtain on the car-buying game.

For one thing, he says, getting a loan from a lender outside the car dealership prompts buyers to think about a crucial question. "How much car can I afford? You want to do that before a salesperson has you falling in love with the limited model with the sunroof and leather seats. "

Reed says getting preapproved also reveals any problems with your credit. So before you start car shopping, you might want to build up your credit score or get erroneous information off your credit report.

And shop around for the best rate. "People are being charged more for interest rates than they should be based upon their creditworthiness," says John Van Alst, a lawyer with the National Consumer Law Center.

Van Alst says many people don't realize it, but the dealership is allowed to jack up the rate it offers you above what you actually qualify for. So with your credit score, "you might qualify for an interest rate of 6%," says Van Alst. But, he says, the dealership might not tell you that and offer you a 9% rate. If you take that bad deal, you could pay thousands of dollars more in interest. Van Alst says the dealership and its finance company, "they'll split that extra money."

So Reed says having that preapproval can be a valuable card to have in your hand in the car-buying game. It can help you negotiate a better rate. "The preapproval will act as a bargaining chip," he says. "If you're preapproved at 4.5%, the dealer says, 'Hey, you know, I can get you 3.5. Would you be interested?' And it's a good idea to take it, but make sure all of the terms, meaning the down payment and the length of the loan, remain the same."

One word of caution about lenders: Van Alst says there are plenty of shady lending outfits operating online. Reed says it's a good idea to go with a mainstream bank, credit union or other lender whose name you recognize.

2. Keep it simple at the dealership.

If you're buying a car at a dealership, focus on one thing at a time. And don't tell the salespeople too much. Remember — this is a kind of game. And if you're playing cards, you don't hold them up and say, "Hey, everybody, look — I have a pair of queens," right?

So at the dealership, Reed and Van Alst both say, the first step is to start with the price of the vehicle you are buying. The salesperson at the dealership will often want to know if you're planning to trade in another car and whether you're also looking to get a loan through the dealership. Reed says don't answer those questions! That makes the game too complicated, and you're playing against pros. If you negotiate a really good purchase price on the car, they might jack up the interest rate to make extra money on you that way or lowball you on your trade-in. They can juggle all those factors in their head at once. You don't want to. Keep it simple. One thing at a time.

Once you settle on a price, then you can talk about a trade-in if you have one. But Reed and Van Alst say to do your homework there too. A little research online can tell you what your trade is worth in ballpark terms. Reed suggests looking at the free pricing guides at Edmunds.com , Kelley Blue Book and NADA . On Autotrader, you can also see what people in your area are asking for your car model. And he says, "You can get an actual offer from Carvana.com and also by taking the car to a CarMax, where they will write you a check on the spot."

So he and Van Alst say don't be afraid to walk away or buy the car at a good price without the trade-in if you feel the dealership is lowballing you on your old car. You have plenty of other good options these days.

Here's how to buy a car without getting over your head in debt or paying more than you have to.

3. Don't buy any add-ons at the dealership.

If you've bought a car, you know how this works. You've been at the dealership for hours, you're tired, you've settled on a price, you've haggled over the trade-in — then you get handed off to the finance manager.

"You're led to this back office. They'll often refer to it as the box," says Van Alst. This is where the dealership will try to sell you extended warranties, tire protection plans, paint protection plans, something called gap insurance. Dealerships make a lot of money on this stuff. And Van Alst says it's often very overpriced and most people have no idea how to figure out a fair price.

"Is this add-on, you know, being marked up 300%? You don't really know any of that," Van Alst says. So he and Reed say a good strategy, especially with a new car, is to just say no — to everything. He says especially with longer-term loans, there's more wiggle room for dealers to try to sell you the extras. The finance person might try to tell you, "It's only a little more money per month." But that money adds up.

"Concerning the extended factory warranty, you can always buy it later," says Reed. "So if you're buying a new car, you can buy it in three years from now, just before it goes out of warranty." At that point, if you want the extended warranty, he says, you should call several dealerships and ask for the best price each can offer. That way, he says, you're not rolling the cost into your car loan and paying interest on a service you wouldn't even use for three years because you're still covered by the new car's warranty.

Gap insurance promises to cover any gap between the purchase price of replacing your almost-new car with a brand-new car if your regular insurance doesn't pay for full replacement if your car gets totaled. Van Alst says gap insurance is often overpriced and is fundamentally problematic. If you still want the product, it's best to obtain it through your regular insurance company, not the dealer.

4. Beware longer-term six- or seven-year car loans.

A third of new car loans are now longer than six years. And that's "a really dangerous trend," says Reed. We have a whole story about why that's the case. But in short, a seven-year loan will mean lower monthly payments than a five-year loan. But it will also mean paying a lot more money in interest.

Reed says seven-year loans often have higher interest rates than five-year loans. And like most loans, the interest is front-loaded — you're paying more interest compared with principal in the first years. "Most people don't even realize this, and they don't know why it's dangerous," says Reed.

Don't see the graphic above? Click here.

Reed says that if you want to sell your car — you decide you can't afford it, or maybe you have another kid and need a minivan instead — with a seven-year loan you are much more likely to be stuck still owing more than the car is worth. So he says, "It puts you in a very vulnerable financial situation."

A better way to go, Reed says, is a five-year loan for a new car and "with a used car you should really finance it for only three years, which is 36 months." One reason that makes sense, he says, is that if your used car breaks down and isn't worth fixing — say the transmission totally goes — you're more likely to have paid off the loan by that time.

Reed says a five-year loan make sense for new cars because "that's been the traditional way — it's kind of a sweet spot. The payments aren't too high. You know the car will still be in good condition. There will still be value in the car at the end of the five years."

Also, Van Alst and Reed say to make sure dealers don't slip in extras or change the loan terms without you realizing it. Read carefully what you're signing.

Reed says a colleague at NerdWallet actually bought a minivan recently and "when she got home, she looked at the contract." She had asked for a five-year loan but said the dealership instead stuck her with a seven-year loan. "And they included a factory warranty which she didn't request and she didn't want." Reed says she was able to cancel the entire contract, remove the extended warranty and get a rebate on it.

"But the point of it is," he says, "I mean, here's somebody who is very financially savvy, and yet they were able to do this to her. And it's not an uncommon scenario for people to think that they've got a good deal, but then when they go home and look at the contract, they find out what's been done to them."

5. Don't buy too much car. And consider a used car to save a lot of money!

"The golden rule is that all of your car expenses should really be no more than 20% of your take-home pay," says Reed. And he says that that's total car expenses, including insurance, gas and repairs. "So the car payment itself should be between 10 and 15%."

And if a new car with a five-year loan doesn't fit into your budget, you might decide you don't really need a brand-new car.

"We're actually living in a golden age of used cars," says Reed. "I mean, the reliability of used cars is remarkable these days." Reed says there is an endless river of cars coming off three-year leases that are in very good shape. And even cars that are older than that, he says, are definitely worth considering. "You know, people are buying good used cars at a hundred-thousand miles and driving them for another hundred-thousand miles," says Reed. "So I'm a big fan of buying a used car as a way to save money."

He acknowledges that which car you buy matters and that it's a good idea to read reviews and ratings about which brands and models are more or less likely to run into costly repair problems down the road. He says some European cars are famously expensive to maintain.

NPR has a personal finance Facebook group called Your Money and Your Life. And we asked group members about car buying. Many said they were shocked by how much money some other people in the group said they were spending on cars. Patricia and Dean Raeker from Minneapolis wrote, "40 years of owning vehicles and our total transportation purchases don't even add up to the cost of one of the financed ones these folks are talking about."

Dean is a freelance AV technician, and Patricia is a flight attendant. They say, "our nicest, newest purchase was a 2004 Honda Accord for $2400, bought last year, that with regular maintenance could likely last another 100,000+ miles." And they say they "can't understand those who insist on driving their retirement funds away."

Even if you buy a slightly newer used car than the Raekers', the couple raises a great point. What else could you be spending that car payment money on? And if you can cut in half what you might otherwise spend, that's a lot of extra money for your retirement account, your kids' college fund or whatever else you'd rather be doing with that money.

Correction Oct. 31, 2019

An earlier version of this story misspelled Kelley Blue Book as Kelly Blue Book.

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How to Buy a New Car in 10 Steps

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Buying a new car doesn’t need to be complicated. Yet the process can be time-consuming and, at times, frustrating.

In pandemic times, it’s even more difficult because inventories remain low, prices are high , and car buyers don’t have much room for price negotiation.

Use our comprehensive list of steps to purchase a new vehicle to save you time and ease your mind during the process.

10 Steps to Buying a New Car

When buying a new car, you’ll want to know everything from your shopping style to what you can afford. Here are the steps.

  • Know Your Shopping Style
  • Narrow Down your Shopping List
  • Calculate a Price You Can Afford
  • Do Your Research
  • Know When the Price is Right
  • Leasing vs. Buying
  • Find Financing, Warranties, and Insurance
  • Sell or Trade Your Current Vehicle
  • Consider Your Buying Options
  • Get the Most Out of Your Test Drive

1. Know Your Shopping Style

Even with so much automotive information available on the internet, many people still want to purchase new cars within only a few days of deciding to buy. This means a shopper could buy the wrong vehicle or one with too few or more features than needed rather than making an informed purchase decision.

Remember, as the buyer, you need to be the one in control throughout the entire process. It’s best to make choices along the way before you even step into a dealership. With so much reliable information available, even if you already have a strong preference for the vehicle you want, you may be pleasantly surprised by the outcome if you take some time to research and remain open-minded.

Here’s one way to start: Take a look at the following list of different types of shoppers and decide which one best describes you. After that, begin your vehicle search using one of the convenient shortcuts shown below, or simply follow all 10 Steps to Buying a New Car to cover all the bases.

Value Shopper

You want a reasonable price, but you are willing to pay for quality. Short Cut:  Check out J.D. Power quality ratings on the vehicles you like.

Image Shopper

You get concerned with what your vehicle says about you. Does it project a desirable image? Short Cut: Go straight to the vehicle makes and models you prefer and check reviews.

Methodical Shopper

You enjoy the chase as much as the conquest and cover every base, becoming somewhat of a new car expert. Short Cut: You’ll need to go through the entire “10 Steps to Buying a New Car” process.

Safety-Conscious Shopper

You want a safe and reliable vehicle you can trust to keep you and your family safe on the road. Short Cut: Read about the United States Department of Transportation’s National Highway Traffic Safety Administration’s 5-Star Safety rating system.

Whatever your shopping style, the information you gather and the effort you put into the process will serve you well and help you avoid the buyer’s remorse that often accompanies automotive purchases.

2. Narrow Down Your Shopping List

Let your new car find you.

How do you narrow down your list with hundreds of new makes and models? To some extent, your lifestyle can help.

Imagine the activities you’ll experience in your new vehicle. If you have small children, you need a car with the best safety features and a roomy vehicle with ample cargo space for all the goods you usually carry. Or perhaps you care more about performance or style. Or maybe you have a job in sales and need something suitable for taking clients to lunch. If your perfect vehicle needs to haul or tow something , you will narrow your choices to those.

When considering the purchase of a car, everything counts like number of seats, number of doors, size, performance, color , style, comfort, and sometimes even towing capacity. The key is to narrow your search by creating a short list of choices before going to the dealership.

Where to start? Begin researching online and check out reviews and guides that can help you narrow your list of candidates in a short time.

Side-By-Side Comparisons

Another tool that will help you narrow your search is the Side-By-Side Comparison , which allows you to compare specifications and see which features are standard or optional on each new car. This is a beneficial exercise when you are down to just a few vehicles and want to compare finer points or features.

These easy-to-use internet tools put you in a position to analyze your choices before making your final decision effortlessly. Avoid making the common mistake of impulse buying. A minor delay in automotive gratification is worth the time spent, especially when receiving that information from a trusted source.

3. Calculate a Price You Can Afford

Calculating car price

Let Your Budget Do the Driving

When considering a new vehicle purchase, the lines of affordability can quickly become blurred due to the varied financing options available. Wise buyers shop for a new vehicle based on what they can afford. Keep an open mind, and you could be pleasantly surprised by the list of cars within your price range.

Affordability is a multi-faceted issue because the car-buying process can consist of several financial considerations. It will help if you accurately determine what your current car is worth , how much of a down payment you can make, and a reasonable amount you can handle for monthly payments. Some careful thought and brutal honesty will pay enormous benefits later.

Many personal finance experts recommend keeping your car budget costs to no more than 10% of your take-home pay after taxes. Your budget will include any car payment, auto insurance , gas, maintenance, and repairs. Use our tool to see what it will cost over five years for the vehicle make and model you prefer. This tool provides estimates for gas, insurance, repairs, and more. It can help you determine your overall budget.

Far too many car buyers shop for vehicles beyond their means and prefer a low down payment. It can lead buyers to drastically misjudge their capabilities regarding monthly payments and then want to reduce the monthly payments by stretching out the lengths of the loans, all of which lead to trouble in the future.

Another crucial element is deciding what to do with your current car. Generally, your vehicle may be worth more when you sell a used car yourself to a private party rather than trade it in. But many people don’t want to take the time and make an effort to do that. Understand that if you trade it in, you will probably not get as much for it as if you sell it yourself.

The biggest issue for most buyers is the price of the new car. Fortunately, determining the MSRP (manufacturer’s suggested retail price) is easy, and figuring at least a range for a realistic transaction price is also not complicated.

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Calculating Affordability

The new-car buying process is greatly simplified when you discover the bottom line vehicle price you can afford ahead of time.

This is true whether you lease or buy. Here’s an example of the kinds of details you could encounter in a typical new car deal:

  • “The vehicle I currently own has a trade-in value of $12,500.”
  • “I owe $2,000 on it.” Meaning you have about $10,500 equity in the car.
  • “I’ve got $2,000 in savings I want to use as a down payment.” You’ll spend $12,500 with the trade.
  • “I want to keep my payments under $500 per month for 60 months.” That monthly payment schedule will allow you to purchase a $37,000 vehicle and finance, roughly about $30,000, due to taxes and interest once you put the down payment on the car. This example assumes a 10% tax rate, or $2,715, and a 4% new car loan interest rate, or $2,850.

Many online tools can help you determine affordability, including a car affordability calculator from our sister site Autotrader.

Your Current Vehicle: Trade It In or Sell It Yourself?

If your car is in excellent condition and you have impeccable service records, it may be well worth your while to sell it on your own. On the other hand, if your car needs a lot of work, you may put more money into it than you can recover — so take a realistic look before deciding.

Get the Kelley Blue Book® Trade-in Value of your current vehicle. Based on the condition of your car, the value represents an accurate range of what you can expect when trading in your car at a dealership. If you decide to trade your vehicle, keep in mind, the dealer must assume the responsibility for preparing your trade-in for resale. This process usually includes mechanical and smog inspections and repairs to make the car ready to sell to the next owner. This will cost the dealer money, and the dealer will figure this into the deal.

If you prefer to sell your vehicle to a private party, check out the Blue Book® Private Party value first. This is the value you can expect to get when selling the car to another consumer. In this case, you are solely responsible for preparing your vehicle for sale and setting and negotiating a fair price. Read more on trading in or selling yourself in Step 8 .

Loan Amount

Calculate the monthly payment you can afford via Autotrader’s car payment calculator to determine the amount you need to borrow. This tool factors in the interest rate and the term of your loan. Now add your available cash from a down payment and a car you trade with the loan amount (if you have one), and you’ll begin to arrive at a price that works best for you.

Also, check for any available customer or dealer incentives on your new vehicle, adding to your available cash amount. Remember, you still need to add taxes, tag costs, and fees, which can vary by state. You can obtain this information through your local DMV.

New Car Pricing

Fair Market Range tool on KBB

You can determine new vehicle pricing on Kelley Blue Book, which features three types of new car pricing:

  • Invoice Price The invoice price is the dealer’s cost for the vehicle and its options. It does not include what a dealership pays for advertising, selling, preparing, displaying, or financing the vehicle. See how the invoice price compares to the MSRP on this 2022 Toyota Camry SE .
  • MSRP Price The MSRP is the manufacturer’s suggested retail price, also known as the “sticker price.” By law, MSRP must be posted on every new vehicle and is usually — but not always — the highest market price. Exceptions occur when certain vehicles are in high demand or experience low availability (or both, similar to market conditions as of this writing).
  • Fair Purchase Price Range Also, check out an available price called Fair Purchase Price. Updated weekly, the experts at Kelley Blue Book have developed the most accurate pricing guidelines for new-car buyers based on purchase data collected across the country.

In addition, incentives may be available on the car of your choice and will bring down the overall price. Read more on new vehicle pricing in Step 5 .

Your decision to stick to a budget will help provide peace of mind, both in the car-buying process and future. And remember, you’re paying more than a dollar for every dollar you borrow, so making a substantial down payment toward the purchase price makes long-term sense. With these principles in place, you should be able to begin in-depth research on your new, shorter list of cars.

4. Do Your Research

What makes a new car the best new vehicle for you?

With the incredible amount of data available, what specifically should you research? You’ll likely consider pricing and equipment options, and the following:

  • Safety features and ratings
  • Ratings for vehicle quality
  • The total cost of ownership over period of five years

This information can help you achieve some needed peace of mind. Then, follow up by researching owner opinions and expert reviews.

There are two aspects of safety. They are passive and active safety. Know the differences of both and learn what’s most important to you.

Passive Safety : This concerns itself primarily with the protection of the occupants in the event of a crash. For the most part, passive safety is the job of the car, although the occupants have the responsibility to use the seat belts.

These are the features associated with passive safety:

  • Energy-absorbing crumple zones
  • Seat-belt pretensioners
  • Head protection devices and the like

Active Safety : This concerns itself primarily with not having the crash in the first place. For the most part, active safety is the driver’s job, but certain essential features on the car can help the driver avoid a crash. Features associated with active safety:

  • Antilock brakes
  • Traction control
  • Stability control
  • All-wheel drive or 4-wheel drive (when driving in bad weather or on slippery surfaces )

The relative importance of these features may vary based upon your driving style and where you drive. You can also check the National Highway Traffic Safety Administration’s (NHTSA) 5-Star Safety ratings. These ratings will give you an idea of the relative performance levels of various cars and trucks in crashes and how your prospective vehicle’s safety features compare to others.

RELATED STORIES:  12 Best Family Cars of 2022  

An online analysis of how your favorite vehicles rate in quality can be a true eye-opener. Years ago, quality referred only to the absence of defects in a car. But research organizations like J.D. Power and Associates  have expanded their research analysis to cover positive aspects of new cars.

This valuable information is provided in the form of J.D. Power Circle Ratings. On the absence-of-defects side, sometimes described as “things gone wrong,” you can find out how the car rates for mechanical, feature, and accessory quality and the body and interior quality. For positive aspects of quality, known as “things gone right,” you’ll find ratings for performance, creature comforts, and style. There’s also a score for the dealership experience based on the J. D. Power “Customer Service Index.”

Expert Opinions

Another way to gain confidence in your purchase is to read what the experts say about your new vehicle. Reading the opinion of experts before the test drive serves many purposes. You can discover the strengths of the car’s performance, see how the car compares in its class, and learn how the vehicle rides and performs on longer trips or what it’s like to drive around town. See our reviews for the car you hope to purchase.

Owner Opinions

Check out owner opinions. Those can be a valuable resource to discover how current drivers rate their new cars. After purchasing your vehicle, you can submit a review to help others make informed decisions.

Finally, don’t forget to run a side-by-side comparison of the vehicles you are considering, and you will get another level of insight. Seeing horsepower, mileage, seating capacity, headroom, legroom, and other specifications side-by-side helps you quickly identify which vehicles meet your specific needs.

5. Know When the Price is Right

KBB Fair Market Range

Once you know the car you want and select the model, options, and color, it’s time to get serious about the price. One key to success in negotiating for a new vehicle is collecting as much information as possible before making the deal.

Today’s savvy car buyer has the internet to thank for helping to take some of the mystery out of vehicle pricing. The online community has provided plenty of fast, free, and factual information. Values include the invoice, MSRP, and Fair Purchase pricing.

Invoice Price

Knowing the dealer’s invoice price helps you determine the lowest price a dealer can go and still make a gross profit on the sale. Dealer invoice is the dealer’s cost for the vehicle only and doesn’t include any of the dealer’s costs for advertising, selling, preparing, displaying, or financing the vehicle.

It’s a great bargaining tool when not in a tight market for car inventory. However, it does not always tell the entire story. Incentives and manufacturer-to-dealer cash could reduce the price below the invoice in some cases. The average dealer markup over invoice cost on most high-volume vehicles is less than 10%. Compare this to any other industry, and it’s low. Dealers don’t make a lot of money on new cars, so they negotiate less on new car prices than used cars . Dealers make most of their money on used cars, parts, and service.

The MSRP, or manufacturer’s suggested retail price, gets set by the manufacturer and means just what it implies — a suggested price. By law, every vehicle sold in America displays this price.

So who pays the MSRP? Lately, the lack of vehicle inventory due to the microchip shortage means demand is higher than supply. For instance, during their respective launches at the time, the Mazda Miata, Volkswagen Beetle, Chrysler PT Cruiser, and Honda Odyssey demanded prices well above MSRP.

Unlike most other business categories, the automotive industry gives retailers the ability to offer customers a discount while still making a profit.

Fair Purchase Price

The Fair Purchase Price is the industry’s most reliable new vehicle pricing tool. It gets updated weekly. The price you receive online specifically reflects the price consumers are paying for new vehicles on a current market basis. Down to the specific make and model, these pricing reports offer a new car’s typical selling price, its typical range of selling prices, and the market conditions affecting those sales.

The Fair Purchase Price is not a number influenced by dealers or manufacturers — it is actual transaction data representing a range of what people paid for specific vehicles. This pricing knowledge will benefit you greatly as you decide what you are comfortable spending for your next car.

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Optional Equipment

The price of your next car will depend greatly on the options you desire. Trends in the industry have moved toward car manufacturers putting packages together rather than simply including options as separate add-ons.

This makes pricing those vehicles much easier. For example, the popular Honda Civic sedan comes in separate versions like the LX, Sport, EX, and Touring.

To remain competitive with the high-volume best sellers, many manufacturers offer standard equipment packages such as the Honda Sensing Safety suite of driver assistance technologies on all models, from automatic braking to adaptive cruise control. As you increase the price, more features become available on each model type. For example, the Honda Civic Touring offers additional safety features like its Blind Spot Information System and parking sensors.

The most efficient way to discover how optional equipment will affect the bottom line is to build a car online. This handy tool will automatically add the cost of each option available on your vehicle and give you a new total reflecting the additional cost factors.

RELATED STORIES: Ordering a Car From the Factory: Everything You Need to Know

The Market Drives the Deal

car market

You can count on car prices fluctuating as popularity, supply, and other factors change. In other words, if you are buying a popular car in short supply, when it first comes to market , you can expect to pay more.

Other people would never dream of paying a premium for anything. For the true bargain-hunter, use our helpful car buying tips that might position you to get the deal you want.

Options that may get you discounts to buy :

  • Out-of-season vehicles, such as a convertible in cold weather or the winter season.
  • Late-model vehicles: in the year before a body-style change.
  • Overstocks or mass-market vehicles come with a customer cash incentive that can be higher in the summer and winter months.
  • Deal-making on the last day of the month happens because dealers have monthly sales quotas.
  • End-of-the-year deals at some dealerships could be available as they clear out inventory for tax reasons.

The research you’ve done so far will give you a comfort level on the right price of your next vehicle. A knowledgeable and reputable dealer will be able to negotiate a fair deal with you and try its best to convert you into a loyal return customer. Today, all you need when you get to the dealership is fundamental information to confidently transact your new car purchase. Read more on finding a dealer in Step 9 .

6. Leasing vs. Buying

With rising car prices, creative financing has come to the forefront, tempting us with promises of longer loan terms to lower our payments. Some dealers may still offer zero or minimal down payments and low monthly payments. However, in all finance scenarios, some sort of fee is attached. The question then becomes, which financial approach best meets your needs?

Lower monthly payments and little to no money down can make car leasing seem like a great deal. The truth is that leasing offers convenience, but only if you are willing to put up with restrictions.

Leasing restrictions include mileage limits of typically 12,000 miles per year, or sometimes 10,000 miles per year, diligent upkeep and care of the vehicle, and, in some cases, penalties for early termination.

After a lease deal is offered to you, be sure to pay close attention to the negotiated purchase price of the vehicle. In addition, look for any fees outside the lease rate, and never sign a lease contract unless the residual value or optional purchase price at the end of the lease is clearly shown.

You are a good candidate for leasing if you prefer to have a new car every few years and put limited miles on your car. Another perk for some is when you can write off your car lease as a business expense. If you want a lease simply to reduce the amount of your monthly payment, consider that it may be outside your realistic capability to make the payments. Try to give serious thought to selecting a less-expensive vehicle, if that’s the case.

RELATED STORIES:  Car Leasing Guide: Everything You Need to Know

Before considering the purchase of a new car, it is wise to establish the amount you are willing to spend or calculate the monthly loan payment. Don’t forget that, after negotiating the car’s final price, you will need extra cash to cover the tax, title, and registration.

Next up, arrange your financing . You may obtain a loan with the dealership or manufacturer’s financing. But there are options. You can arrange for pre-approval of a loan from your bank or credit union. When you do some of these things, you may not have a specific vehicle in mind, just a general price range, and when you make the deal, you write the dealership a check for the total amount.

Some institutions will give you a lower interest rate if you choose electronic loan payment, so be sure to ask about it. Read more about financing in Step 7 .

Remember to check for incentives on your vehicle of choice. From 0% financing to customer-cash rebates, manufacturers constantly compete for your business by making their vehicles and financing more affordable.

RELATED STORIES:  Car Discounts Not Coming Back, Says Largest Dealership Group

Quick Glance Lease vs. Buy

* varies state by state

7. Find Financing, Warranties, and Insurance

car financing

Financing Your Vehicle

With the buzz surrounding 0% financing deals, you may have the urge to rush to your dealership to apply for that terrific interest-free loan. Unfortunately, you may find that, along with roughly two-thirds of all other consumers, you may not have a sufficient credit rating that will qualify you for the loan or the offer. The alternative will be a different loan at a higher interest rate. At that point, the excitement of driving off the lot immediately may tempt you to take that higher interest rate in exchange for that shiny new car. It’s best to resist that temptation.

Additionally, a credit rating far below-par indicates a person who has had difficulty making payments in the past. That increased risk to the lender is reflected in the higher interest rate to the borrower. Remember, it’s always wise to shop for the lowest interest car loan before making the deal. On Kelley Blue Book, it’s easy to shop for a loan online. But if your credit rating is not good, it’s not wise to shop for a new car in the first place.

If your credit rating looks good, be sure to check the financial incentives from the manufacturer. But be aware that many interest-free financing offers may require shorter terms, which will result in higher monthly payments.

As tempting as a dealer’s discount financing may seem, don’t overlook other deals. You won’t face the same obstacles when you walk onto the lot with financing in place because you’ve done your legwork in advance. And since there’s no obligation until you buy the car, you can assess your purchasing options against the dealer’s best offer.

Visit the finance section to learn more about smart financing .

Even if interest rates rise, they’re still historically low. So, investigate the array of interest rates, incentive options, and the competitive advantage of online financing. You have more tools than ever at your disposal to make a smart vehicle purchase.

An extended warranty or service contract will be offered to you when buying your next car. An extended service contract backed by an auto manufacturer is usually your safest bet if you plan to own the car for a long time . These contracts encompass a wide range of repairs and services. The repairs can be done at any authorized dealership and tend to be approved without a hitch. You won’t pay a penny for approved repairs unless your contract includes a deductible.

An extended warranty from an independent company could cost less than an extended service contract from a manufacturer. But the quality of this kind of contract varies widely from company to company. Shop carefully and only consider if you plan to keep your vehicle past its existing warranties.

Insurance Rates

The truth is, automobile insurance is a necessity. Most states, except New Hampshire and Virginia, require all vehicle owners to carry car insurance and be able to show proof of it.

The type of vehicle you choose and the history of your driving record can profoundly affect the cost of insurance. Typically, sports cars, high-performance cars, turbocharged or supercharged vehicles, those with larger engines, and vehicles with 4-wheel drive often result in higher insurance rates. Also, vehicles with histories of being stolen can demand a premium.

Since it always pays to shop around, check rates with your insurance company before buying your new vehicle.

These additional expenses may be unavoidable and should be reviewed carefully before making your next car purchase. As a result, you could save yourself a lot of money and aggravation in the years ahead.

RELATED STORIES:  How to Estimate Car Insurance Costs Before Buying

8. Sell or Trade Your Current Vehicle

sell car

Like most do-it-yourself projects, selling your own vehicle to a private party can be cost-effective. In contrast, trading in your current vehicle at the dealership makes it easier and sometimes faster.

Before buying your next vehicle, consider the pros and cons of what to do with your current vehicle and make an informed choice.

Trading in Your Vehicle: The Pros and Cons

Trading your car in at the dealership may be quick and easy, but it may not always be painless. The upside of trading is that the dealer does all the paperwork. After settling on an acceptable price, all you have to do is sign the vehicle over and be done with it. The price you pay for the convenience of being relieved of your vehicle will likely be less money for you than if you sold it yourself.

Some people expect the dealer to give the full retail value of the vehicle and are often disappointed by the offers presented to them. Such people are being unrealistic. To avoid any surprises, get the Kelley Blue Book® Trade-in value of your vehicle, and the Kelley Blue Book Instant Cash Offer option, which provides a starting point for trading in a vehicle at a dealership.

This number — based on the condition of your vehicle — is a more accurate representation of what you may expect to be offered. Keep in mind that if the dealer is going to re-sell the car, it must assume the responsibility for preparing it for that eventual resale. This process usually includes mechanical and smog inspections, repairs to make the car ready for sale, and typically a warranty on the vehicle for the new owner. The dealer might also sell the car to a wholesaler or at an auction, where dealers buy and sell cars from and to each other to balance their used-vehicle inventories and make them most appropriate for their respective dealerships.

For example, if you want to trade an old, worn-out pickup truck at a high-end import luxury-car dealership, the truck will likely not go into the dealership’s used vehicle inventory. So that truck goes to the auction.

Trading can also help if you owe more on the loan than the car is worth. This is known as being “upside-down.” The dealer can roll the remaining balance of your current vehicle’s loan into the new loan, thus allowing you to trade in your vehicle without having to pay additional cash. While this is not advisable — because it inflates the loan far beyond the new vehicle’s actual value — it is an option for a buyer who wants to get out of the current vehicle. And it will cost that buyer a lot of money.

Selling Your Vehicle Yourself: The Pros and Cons

Selling your car on your own can get you more dollars but requires patience and good judgment. First, you will need to determine a fair asking price. Kelley Blue Book® Private Party value will give you a price, based on the vehicle’s condition, for you to calculate the value of your vehicle in a consumer-to-consumer transaction.

RELATED STORIES : How to Sell a Car: 10 Steps for Success

Be aware you may need to absorb the cost of making the car presentable and passing any required state inspections or emissions tests. And remember, first impressions are important, so always keep the car clean and ready to be shown while it’s available for sale. You also need to factor in what your time is worth. You will need to be available to answer questions and make appointments for people to see the vehicle and take it for test drives.

Another downside to selling your car yourself is that you could be contacted by some unsavory individuals or people you just don’t feel comfortable with. You need to apply good instincts about people and bring strong negotiation skills. If you decide to sell your car yourself, be sure to put everything in writing and request a cashier’s check or a form of electronic payment, like PayPal . Personal checks can bounce, and it’s never wise to carry cash in large quantities.

Generally speaking, points that will enhance the notion of selling the car yourself include:

  • Is it a vehicle that’s normally in strong demand anyway?
  • Is it unmodified, thus appealing to the greatest number of buyers who, generally, don’t want someone else’s modifications?
  • How about the car’s condition? What about pricing — does it seem reasonable?

If you decide to sell your car yourself, these are the best options available to advertise your vehicle to potential buyers:

  • Put an ad up for free using a service such as Facebook.
  • Place an ad on a paid service, such as Autotrader or Kelley Blue Book .

Consider These Points When Selling Your Car

  • Make your car presentable. Give it a wash and wax on the exterior and complete vacuuming of the interior. If you really want to impress potential buyers, take the car to a professional detailer and get the interior, exterior, and engine thoroughly cleaned.
  • Locate all service records. Bring as complete a file of service records and neatly arrange the information for your prospective buyer. This will instill confidence that you took care of the vehicle.
  • Be honest . Disclose any accidents, serious problems, or repairs to bring the vehicle to correct condition.
  • Don’t be offended. It’s pretty common for prospective buyers to get the car checked out by a professional mechanic. The safest way to handle this step is to meet the prospective buyer at the mechanic’s location. Better yet, do this step before you start price negotiations.
  • Allow room to negotiate. Set the asking price above what you really want to leave room for negotiation. And remember, just because you might think you “need” a certain amount of money from the sale is no reason to expect someone else to pay that amount. A car is worth only what someone will pay for it, on that day, at that time.

Quick Glance Trade vs. Sell

9. consider your buying options.

Moving to the seat behind the wheel of your next new car is the most exciting part of the buying experience. By this time, you narrowed your choices down to a few vehicles that are right for you and set goals for negotiating price, monthly payment, trade-in, and finance options. You can now get ready to negotiate and purchase your next new vehicle with confidence.

The traditional way of picking a dealer has evolved. Today, there are many options to approaching the retail car purchase. You have a great place to start if you have a good relationship with a trusted local dealer that offers the brand you’re looking for. Convenient internet tools come in many different types. For example, Kelley Blue Book can help you find the car you want, and with an accelerated deal format, connect you to finance offers, put you in touch with the dealership with that financing offer, and help get the car delivered to your doorstep.

You can also buy your car by:

Using the Dealer’s Website

Most dealerships during the COVID-19 pandemic updated how to transact with consumers. It’s possible to buy a vehicle entirely online and get it delivered to you. You can also transact at the dealership.

Visiting a Manufacturer’s Website

Manufacturers and dealers are adapting to new ways of doing business so consumers can purchase the cars they want. Tesla sells cars directly to consumers , with no third party involved.

For other manufacturers, it’s easier than ever to factory order the car you want in the color you want, with all the features you want, and then pick it up at a dealership. In some cases, they will deliver it straight to your door.

Most manufacturers have links to their websites via Kelley Blue Book’s Free Price Quote tool for your convenience . While economic conditions make it more challenging to find incentives, some manufacturers offer loyalty programs and other special promotional offers to customers who register directly through their sites. If available, check out the latest manufacturer incentives, including low finance rates, 0% percent deals, and customer cash.

Connecting to Direct Buying Sites

If you prefer to purchase your next vehicle from a direct buying site, these online companies will work with you to complete the entire transaction with the dealer — all the way to delivering the car to your front door.

10. Get the Most Out of Your Test Drive

So you’ve done your online research and located a dealer. Now you are ready to experience the vehicle first-hand. Once you’re a serious shopper, the dealer will work closely with you and provide full access to the vehicle for inspection and test driving. If you plan to test drive a few different vehicles, let the salesperson know that you are still gathering information to make your final decision.

A good salesperson will know about the vehicle’s finer points and make you aware of additional features you didn’t notice while doing your online research.

Kick the Tires

It’s important to get up-close and personal with your prospective new vehicle. Ask yourself these questions:

  • How’s the overall appearance?
  • Are there any unsightly gaps?
  • Do the exterior and interior colors look good together?
  • Is the trunk and cargo area spacious enough for your needs?
  • Is the driver’s seat comfortable and easy to adjust?
  • Are the controls easy to understand and use? Does the steering wheel feel good in your hands?

Determine what vehicle characteristics matter most to you. If music is your thing, make sure the sound system’s quality works to your satisfaction. If you plan to have frequent passengers in the back seat, climb in the back and buckle the seat belt for the full effect. How about convenience features like USB ports, cupholders, or sunglass holders? If you use them a lot, this is an excellent time to examine them closely.

The Test Drive

Now that you’ve completed a thorough walk-around, you can concentrate on the driving experience. The test drive can help you make your final decision. When you drive the vehicle, take your time. Be sure to drive on both city streets and the highway and never feel you need to rush the process.

Whether you are an expert driver or not, there are key areas to keep in mind during the test drive that will ultimately matter in the long run.

Ride Comfort

Is the ride smooth or uncomfortable? How does the driver’s seat feel while driving? Are there any unusual vibrations or jolts when you go over rough roads?

Do you hear excessive engine, traffic, or other noise coming through the car’s cockpit? Can you hear the wind coming through the windows? Or is there annoying road noise from the tires  or squeaks and rattles?

Power and Acceleration

How does the vehicle respond when you push the accelerator pedal? Does it hesitate or lurch forward? Does the engine feel solid and smooth?

Does the vehicle come to a smooth stop when you apply the brakes? Do you feel any vibrations through the brake pedal? Is the steering affected by the braking? Does the car stop in a straight line?

Can you park the vehicle? Does it seem easy to maneuver? When you turn the wheel, does the car respond predictably? Is the turning radius tight enough to make a U-turn? Are there any blind spots that hinder visibility? Your driving experience should back up the homework you’ve already done. If not, you may want to revisit your selection.

Now that you’ve driven the car, you may finally be ready to make a solid purchase decision. Remember, your final decision will always include a certain amount of emotion. But the more homework you complete, the less emotional your actual purchase decision will be.

A good deal means different things to different people. With the help of Fair Purchase Prices, you can be confident that you will pay the best possible price. But remember, price isn’t everything. Knowing what you want to accomplish is the other half of the battle. Before you close the deal, ask yourself:

  • Did I purchase a well-built vehicle that meets my needs?
  • Is it at a price I can afford?
  • Is the price I paid a good value for the money?
  • Did I fully understand and feel comfortable with the entire transaction?

If you have accomplished all those points, you made a good deal.

After a thorough check of your new vehicle and completing the paperwork, you can drive your brand new car, pickup truck, SUV, or minivan home.

Read Related Car Buying Stories:

  • How to Buy a Car Online
  • What are the Best Car Colors to Buy?
  • How to Buy a Car From Out of State

Editor’s Note: This article has been updated for accuracy since it was originally published.

For Sale Near You

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How long does it take to buy a car?

It depends. While the timing can vary, many dealerships have streamlined the process of buying cars since the COVID-19 pandemic. But once you know what vehicle you want, it may take only two to three hours to complete the deal. It helps to know your credit rating and get pre-approved for a loan if you finance the car. You could also decide to factory order the vehicle, which doesn’t take much time.

Can I buy a car with bad credit?

Yes, it’s possible. Car buyers with poor credit scores manage to get approved for vehicle purchases on a regular basis. It takes some thoughtful planning to get the loan you want and the car you need. While cars for bad credit exist at the “buy here, pay here” dealers, traditional car dealerships also offer loans with higher interest rates. That’s the better option unless you can wait it out and take the time needed to repair your credit.

Can I buy a car with cash?

Yes. But, there are pros and cons of paying cash for your vehicle purchase .

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Buying a Car Essay Example

I am in the market looking to purchase a new car and getting the best deal. This process requires me to establish some parameters. The negotiation setting will take place at my local car dealership where I am trying to buy a new Lexus that has a window sticker price or the manufacturer’s suggested retail price of $66,000. The MSRP is usually the “asking price” the seller wants for the vehicle that can be negotiated in the seller’s favor. This negotiation is best done in the live presence of purchasing the car and within the last three days of the month because it helps ensure the buyer finds the best deal. Usually, the last days of the month are times when car dealers try to meet their monthly-end quota. In other words, it when the seller is desperate in trying to get in the final car sales before their monthly performance review. Thus, the dealer’s floor manager will be my counterpart, and I will act as a buyer. 

However, the current price is not in my budget range and my negotiation strategy is to lower the markup on the car’s window sticker by focusing on three objectives that are related to the vehicle’s price analysis. The first objective is to reduce the window sticker price. Upon doing research on the internet, I have identified the relative price range for the car and concluded that I can buy the car at ten percent off the window sticker price of $59,400. This is based on past internet sales that previous buyers have made with other dealers. By reducing the car’s overall price, I can lower the monthly payments. The next objective is setting the monthly payment and terms. For example, the monthly payments would be set on the terms for sixty months at a three percent interest rate or lower by using a credit score that is above seven hundred. This ensures I receive the best rates in order to pay for the monthly car note that I have set at $1,100. Finally, the last objective is to discuss the vehicle’s maintenance cost with the seller. It includes oil changes and tire rotation for the first twenty-five thousand miles. These cost savings will provide for the cash proceeds to cover the monthly gas expense.

In any negotiation, I need to analyze my position by understanding my target point, reservation point, and best alternative to a negotiated agreement. My target point or the best deal is the vehicle’s final purchase price that is below $66,000. window sticker price. Specifically, it would at a price of $59,400 which is ten percent below the MSRP. If I can achieve this target point, it will encompass my other objectives, such as achieving my target monthly payments, monthly interest, and maintenance cost. Conversely, my reservation point or the highest price that I am willing to pay for the car is any price at or above $66,000. Based on online research, there is has been an established customer base purchase at this price point. Thus, any price beyond the reservation point will result in a larger depreciation loss as the car ages and also put me above my car note budget. Furthermore, in this negotiation deal, I have also identified my BATNA or best alternative to a negotiated agreement that describes my bottom line or a solution to the negotiation. Any price within the price range at $59,400 or $66,000 will be my BATNA because this is the price range is within the target and reservation price point. Hence, if I cannot obtain a car in this price range then I will walk away from the deal. I can use my BATNA to pressure the floor because it gives me the opportunity to search for a better deal at a different dealer. In essence, I can price shop for the best deal and leverage my reasoning for reducing the MSRP at the local car dealer. This will pressure the floor manager to call me back.

Buying any new car has several tangible and intangible interests for both buyer and seller during a negotiation process. Tangible interest is anything that can be measured. As a buyer, my tangible interest includes the car itself that will be represented as my property. In other words, the car will be the physical asset I gain in this negotiation process. Moreover, another tangible interest is the equipment that I receive from the car. For example, there will be new safety technology like adaptive cruise control, lane-keeping assists, and a backup rear-view camera. A new car also does not have a previous crash history. Instead, it comes with a warrant from the factory which reduces stress on unforeseen costs related to used cars. Finally, another tangible benefit is increased fuel economy because new cars are now lightweight yet use strong material to help burn less fuel which will help me save money on gas. On the other hand, intangible benefits in this negotiation include social benefits such as getting my kids safely to school. Also, the luxury service that comes with buying a luxury car. This includes the enjoyment of the VIP treatment, such as valet parking during a car’s maintenance visit at the dealer. Conversely, the seller’s tangible benefits are increased sales revenue for his/her dealership and personal commission by selling the car. Moreover, the seller’s non-tangible benefits include the verbal and physical interaction with customers that can give the seller more experience at his/her job. There could also be recognition and high praise from the seller’s sales manager that can offer better positions in the company if the deal is made. 

In this process, both seller and buyer also possess negotiation powers. As a buyer, I would have reward and expert powers. While these powers are normally given to managers within the organization, occasionally customers can have them as well. For example, one reward power that I would have is controlling the commission rewards for the sales representative. If I do not agree to buy the car, I can reduce the floor manager’s commission by walking away from my current emerging deal if I feel it is not decent as it should be. Moreover, I have expert power because, with the help of the internet, I can put forth data or other evidence to support any price reductions and receive the best deal. On the other hand, the seller has legitimate power. Despite not being able to obtain a commission if the deal is not made, the floor manager makes the final decision in selling the car. Also, the floor manager has expert power too because he has experience making deals in the past with other customers. Because he has a demonstrated successful history, he has knowledge on how to properly handle customers and make the deal in his favor. 

Because there are multiple related price issues like MSRP, monthly payment, and maintenance cost, there are various strategies to achieve integrative potential in this negotiation. To begin, it is vital to understand and incorporate the floor manager’s wants, needs, and concerns in order to achieve my desired price point. This way we both can shake hands and feel that there is a favorable outcome for both of us. I will start by listening to the seller’s concerns and ask the “why” questions to help me identify the floor manager’s BATNA. Once that is established, I can work on a solution. For example, if I cannot buy the car at $59,400 and he will not sell lower than $66,000, then I try to meet at the halfway price mark at $62,700. This will help reach us common ground because we both would have to compromise to a price away from our target points. Finally, I would take my time to identify our interests and constraints to build a proposal that creates value for both of us. For example, I believe humans interests can include something simple as recognition at work. Thus, I would indirectly tailor questions the help me identity his progress towards his sale goals. If the floor manager mentions he is doing almost better than the previous month, I could potentially help him reach his goal if we meet at the half-way price. This strategy would work because it would be incentivizing for the manager to take the deal and perhaps helping him earn an additional bonus for meeting his monthly quota. Consequently, understanding these steps in my negotiation process will ensure everyone’s interest.

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Guide for First-Time Car Buyers

What you need to know before buying your first car.

how to buy a car essay

  • 8/17/2020 (updated 3/8/2021 )

A big step toward feeling like an independent adult is buying your own car. However, it's important to know what you're doing — and what you're buying. There are plenty of cool-looking cars with great features, but which one is right for you? And how will you know that you're getting a good deal?

This buying guide is designed to help you get what you really want out of your first car purchase. From monthly payments and loan terms to used versus new, we'll walk you through all the tough choices and get you ready to make the best decision.

Honda dealership

Honda dealership

How Much Can I Afford?

The first part of buying a car is knowing your limits. What's the most you should spend on your monthly car payment? Schools of thought differ on this question, but the Edmunds view is that your car payment should be no more than 10% of your monthly take-home pay if you're buying used, or 15% if you're buying new.

Not sure what that translates to in a car price? Take a look at our affordability calculator for more information.

You'll also need to factor in the cost of insurance and fuel. Insurance costs vary widely depending on driver age, driving record, vehicle type, insurance provider and extent of coverage, so make sure you get quotes from multiple providers based on all those specifics. Fuel economy figures can be found at the EPA's fueleconomy.gov website. Together these two costs should be no more than 7% of your monthly take-home pay.

How Do I Get a Loan?

When it comes time to apply for a loan, you have a few options: your bank or credit union, the dealership or a third-party lender. Dealerships tend to have better rates, but that's not always the case, so it's worth getting preapproved by other lenders before visiting the dealership to give yourself a basis for comparison. Note that if you're shopping for a used car, the lender may expect you to know what vehicle you plan on buying. Also, make sure you get all your loan applications done within a couple of weeks so there is only one big impact on your credit score.

How Long Should My Loan Be?

More and more people are taking out long car loans to make their monthly payments more manageable, but that's not always the best idea. A longer loan will lower your monthly payment, but you will pay more in finance charges and it will take you longer to gain equity in the vehicle. These days, 72- and 84-month loans are increasingly common, but we recommend 60 months or lower — especially if you're financing a used car. 

There are other reasons to keep your loan as short as possible. For example, consider how soon you might get tired of the car. If you go for a 72- or 84-month loan, by the end of it you might be ready to unload your aging ride and jump straight into a new car. But if you choose a 60-month loan, you might enjoy the car for an extra year or two with no car payments. Or go ahead and get rid of it at the five-year mark — the car is fully paid for, and you've saved the equivalent of two years' depreciation versus waiting till the end of a seven-year loan. Check out our article on how long a car loan should be for more information on loan terms.

What About the Down Payment?

In an ideal world, we'd put down 20% on a new car and about 10% on a used car, to offset the initial depreciation. But not everyone can handle that with today's car prices. If you need to make a smaller down payment, our advice is to put down as much as you can without dipping into your emergency savings. If you put down less than 20% on a new car, it may be worth looking into gap insurance . See our detailed analysis of how much a down payment should be to learn more.

Should I Consider Leasing?

If you're into the latest tech and luxury, leasing may be a compelling option. Suppose that a $400 monthly payment is the most you can comfortably afford. If you're buying, that might get you into a mainstream SUV or sedan — but if you're leasing, you can choose from a variety of luxury models. At the end of the day, of course, you don't own the car, but you also get to skip the usual maintenance and repairs, paying only for routine procedures such as changing the oil and tires. There's no objective answer to whether buying or leasing is better, but for those who don't mind always having a car payment, it's easy to see why leasing holds appeal.

See Edmunds pricing data

Has Your Car's Value Changed?

Used car values are constantly changing. Edmunds lets you track your vehicle's value over time so you can decide when to sell or trade in.

Chevrolet dealership

Chevrolet dealership

What Car Should I Get?

To answer this question, consider how well the models in your price range meet your needs. How many people can they hold? How do they drive? How's the fuel economy? What safety features do they have? How much cargo can they hold?  Do they offer "must-have" features such as Apple CarPlay, a sunroof or leather seats? Our article on finding the right car for you lays out this approach in more detail. If you already have an idea of what you're looking for, our car rankings and reviews will help you narrow it down.

Test-Drive and Inspect the Car

You've decided on a car. Great! Now it's time to take a closer look. Arrange for a test drive with the dealership or private seller. Pay attention to how the car feels on the road and whether it has enough room for your family or cargo. If the vehicle is used, we recommend getting it inspected by a trusted mechanic before making the deal. This kind of inspection usually costs somewhere between $100 and $200. You can forgo the inspection if the vehicle is a certified pre-owned vehicle since it will come with a limited warranty.

Settle on a Price and Close the Deal

If you're searching for new vehicles on Edmunds, you'll see that we list the suggested price to pay on each inventory listing. If you've already obtained a dealer quote, use Edmunds Price Checker tool to help determine if you're getting a fair price. For used vehicles, Edmunds has a "deal rating" that lets you know how a vehicle is priced relative to its market value. Use this data to help with the negotiation . Once you've agreed to a price, and if the seller is a dealer, you'll want to ask about any other fees or add-ons that haven't yet been disclosed. This means extended warranties, maintenance plans and so forth. Be sure to ask for the " out-the-door " price, which factors in all the taxes and fees and gives you your final monthly payment.

Even after all that, you should still carefully review the sales contract . You don't need to read the whole document, but make sure it's not filled with unknown charges or terms. Remember, there's no turning back once you sign.

That's It. You're Done!

Take the time to relax and drive. Enjoy your car. You've learned a lot, and you'll be that much more prepared for your next automotive transaction.

Elizabeth Berkowitz

2024 Hyundai Kona

how to buy a car essay

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How to Buy a Car Online

Here are tips and tricks to save money and reduce your time spent at the dealership when buying a new car

Photo illustration with car seen in web browser window

Here’s the truth of the matter: It’s not very common—and in many states it’s impossible—to buy a car entirely online, because most states require in-person signatures for automotive sales contracts. But that doesn’t mean that you can’t complete most of the process from the comfort of your home.

How to Finalize Your Car Purchase

Concierge services for buying used cars , such as Carvana and Authority Auto, allow buyers to handle most aspects of a used-car sale without meeting with the seller. Automotive brokers can also buy and deliver a new car to your home in some states—in exchange for a big fee. 

"If you want to minimize the dealer interaction, you can do almost everything online or on the phone, from getting a Carfax report for a used car to figuring out the dealer cost versus the retail price for a new car," says Gabe Shenhar, associate director of CR’s auto testing program. "Visiting the dealership should be the last step once the specific car you had your eye on is there for you to test-drive.”

For many consumers looking to purchase a new car , the dealership is the only practical option. Fortunately, the expert car buyers at Consumer Reports—who anonymously purchase about 50 cars per year for CR’s testing —have a few strategies for spending as little time as possible at the dealership:

Do online research. Figure out which model, trim level, and features best suit your needs. Then search online to see which dealerships have vehicles with your preferred specifications. Depending on availability, you may need to expand your search to dealers in other states , or ask the local dealer you’re working with if they can get you a car located outside your area.

Communicate. Reaching out to a dealer doesn’t have to involve showing up in person. Get in touch by phone, email, or text—whatever works best for you and the dealer.

Schedule a test drive in advance. At some point, before you’re ready to buy, you’ll want to test-drive the car . Setting this up ahead of time can help minimize time spent at the dealership. Keep notes regarding what you like and don’t like about the vehicle. This can help in narrowing down your list of preferred models and identifying the trim that best suits you.

Negotiate remotely. Once you’ve decided on a car, negotiate a price from each dealership either over the phone or via email. Carefully review the price breakdown to make sure there are no extras you didn’t want or fees you don’t agree with rolled into the final price. Get the final, out-the-door price in writing before committing.

Stoke competition. If you’ve obtained a range of prices from different dealers, you can let the dealers know this and put them into competition with one another to get the best deal.

Find out about incentives. Make sure you ask about discounts for customer loyalty (owning the same brand of vehicle) or conquest (switching from a competing brand). CR’s car buyers find that incentives like these are easy ways to shave a few thousand dollars off the price, even on just-released vehicles.

Have a loan offer in hand. Find the best interest rate and loan terms by shopping online before you go to the dealership to sign on the dotted line. Getting a loan that fits your budget preapproved by your bank or credit union gives you a baseline for negotiations at the dealership, which may even have a more competitive loan offer. Be aware, though, that when it comes to financing, dealers tend to focus buyers on monthly payments that may, or may not fit within your budget. (Also, don’t forget to factor sales tax and insurance into your total budget.)

Resist pressure. When communicating with the dealer from home, be up front about how much time you will have when you arrive at the dealership, as well as your expectations regarding price. Be readyto walk away if the dealer insists on upselling or adding on extras you don’t want. If the dealer insists on signing you up for in-house financing that doesn’t beat your pre-approved offer, you may want to move on to a dealer that will work with you.

CR shows you how to beat the ’four square’ and other car dealership sales tactics .

Because most states require in-person signatures for automotive sales contracts, a start-to-finish online transaction is rare. 

“Purchasing a car generally also includes securing financing and proof of insurance, whether a lease or a purchase, and the purchase contract has specific required elements. While some automakers and used-car sites have created ways to handle the paperwork largely online, it still takes time and can be cumbersome,” says Stephanie Brinley, associate director of research and analysis in AutoIntelligence at S&P Global Mobility. “Ordering and buying a car online is not as easy as ordering groceries for home delivery."

Mark Schirmer, director of public relations for Cox Automotive, an car market analysis company based in Atlanta, says that every state has its own regulations regarding car sales contracts, which complicates the process. Even an online used-car retailer like Carvana will require you to sign documents at some point during the car-buying process.

The takeaway: Be prepared to go to the dealership in person to complete the transaction.

CR's Build & Buy Car Buying Service

When buying a car, Consumer Reports offers its members access to its Build & Buy Car Buying Service at no additional cost. 

Through this service, you’ll be able to:

  • Tell us what you’re looking for and find out what people in your area paid for a similar car.
  • See up-front price offers on specific vehicles before heading to the dealership.
  • Browse a nationwide network of over 12,000 prescreened dealers from the comfort of your home.
  • Receive competitive pricing on vehicles that match your preferences.
  • Save $100 or more via additional membership discounts through participating dealers.
  • Spot the Consumer Reports recommendation symbol to quickly alert you to vehicles we’ve already put through our rigorous tests.

Benjamin Preston

Benjamin Preston has been a reporter with the Consumer Reports autos team since 2020, focusing on new and used car buying, auto insurance, car maintenance and repair, and electric bikes. He has covered cars since 2012 for the New York Times, Time, the BBC, the Guardian, Road & Track, Car and Driver, Jalopnik, and others. Outside CR, he maintains his own small fleet of old cars and serves as a volunteer firefighter, specializing in car crash response and vehicle extrication.

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How to Buy a New Car in 7 Steps

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1. Get a preapproved car loan and set your budget

2. research and identify your car’s must-have features, 3. test-drive the car, 4. find the right price, 5. get dealer quotes, 6. maximize trade-in value, 7. seal the deal.

Buying a car can be a daunting process. And as the auto market reels from supply chain disruptions, high prices and soaring interest rates, it can be even more difficult to find the car you’re looking for.

But even within these market conditions, there are some tried-and-true steps you can follow, such as getting a preapproved car loan before you even step foot on the lot, that can make buying a new car easier.

» MORE: Look into vehicle financing options before you go car shopping

Find your next new or used car with ease

Compare prices, models, and more from over 1,000,000 cars nationwide. Shop and compare before visiting the dealer, and get a trade-in offer for your current car in minutes.

Ford F-Series

Vehicle imagery licensed by EVOX

Start by deciding if you want to pay cash or take out a loan for your new car.

Paying cash makes your budgeting process pretty simple, but don’t spend all your savings. And remember that you will also have to pay sales tax, registration and insurance.

Taking out an auto loan is the most common option, but it's important to research financing and get a preapproved car loan before you start shopping for cars. Getting preapproved for a loan will let you know how much you can afford to borrow and what interest rate you’ll likely get. This will not only help you set a budget but, also give you offers for the dealer to beat when you’re negotiating later down the line.

With your preapproval information, you can use a car payment calculator to figure out how much you can afford to put down and what your monthly payments will be. If you can, aim to put down 20% of the purchase price.

Once you know how much you can afford, you can begin comparing options that might be right for you. When researching, consider how you plan to use your car. For example, if you have a family, you’ll want enough room for everyone, plus ample cargo space. Additionally, making a list of must-have features can help you narrow down your options. For example, if safety is a top priority, you can check the Insurance Institute for Highway Safety for crash test ratings.

Aim to choose models not only for their dependability but also for their low cost of ownership . J.D. Power and Consumer Reports (which requires a paid membership) may be helpful resources; they collect maintenance reports from owners and rate cars for reliability.

When researching, check the total cost of ownership for each model. Some cars are cheap to buy, but will cost a lot in the long run because of insurance, maintenance, repairs and depreciation. Use tools like Kelley Blue Book’s Five-Year Cost to Own or Consumer Reports’ Cost of Vehicle Ownership to estimate these expenses. Sometimes, it may be wiser to pay more for a car upfront than to risk high maintenance costs down the line.

After you’ve established your criteria, search for models that meet them. Many automotive sites and car-buying apps have a car finder tool to help you identify strong candidates, as well as in-depth rankings and research guides. Filter your search according to your budget and desired features. Identify three to five target models to research in more detail.

» MORE: Car insurance comparison tool

It’s important to test-drive all the cars you’re interested in so you have a good feel for the different models. Keep the following in mind when test-driving a vehicle:

Set aside a morning or afternoon for the process, and, if possible, do it mid-week when dealerships aren't too busy.

Call ahead and schedule an appointment. That way, the right model will be pulled out and ready to go.

Select a test-drive route that has a bit of everything: hills, rough pavement, curves and even a stretch of highway.

Due to the new-car shortage, it may be hard to find what you want on the lot. You can find dealership inventories online or use an app or website that lets you quickly search multiple dealerships at once.

If nothing is available nearby that fits your needs, try broadening your search radius using an online car-shopping tool like Autolist or Autotrader to cover an entire region.

on MyAutoLoan's website

Pricing guides such as Kelley Blue Book and Edmunds allow you to cut to the chase and find out what other people in your area are paying for the car you want. To see prices on either company's website, input the car options you want. Note that factors like color, for example, can affect a car’s price.

Additionally, make sure to see what, if any, incentives and rebates are available for the car you want. Most manufacturer websites list current offers, which typically change each month.

» MORE: Buying a car: 3 ways to save

Requesting dealer quotes by email can take the stress out of negotiating. You can ask for a price quote by emailing the dealership , or by using a third-party tool such as TrueCar that lets you quickly request quotes from multiple dealerships.

Compare the seller’s asking price to the average market price you determined through the pricing guides. Chances are, the seller is asking more than the market average.

If you negotiate in person, here are a few tips to use on the car lot:

Don’t be a monthly payment buyer. If you have a preapproved loan, you’re treated as a cash buyer. Negotiate the price of the car, not the size of the monthly payment.

Negotiate slowly. It’s easy to get confused, so go slowly and even write down the numbers thrown at you. Make sure you know whether you’re talking about the “out-the-door” price , which includes all taxes and fees, or just the sale price of the car.

Ask about fees before saying yes to a deal. Some dealers may include fees that are unnecessary. Ask for a breakdown of additional fees before you agree to any deal.

Be ready to walk. If you aren’t making progress toward a deal, or you don’t like the way you’re being treated, just walk out. 

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If you have a car to trade in , make sure you’re getting the best price for it. You can use an online pricing guide’s appraisal tool to determine what your car is worth. Make sure to fill everything out accurately, as certain features and options can add more value.

Here are some terms you might encounter:

Trade-in value: How much you would receive when trading in the vehicle.

Private-party value: How much you would receive if you were to sell the vehicle on your own.

Dealer-retail value: How much the dealer will try to sell the vehicle for.

You can also sell your car online through car-shopping sites that will give you an instant offer for your vehicle — even if you don’t purchase a vehicle from them. Having that as a reference point will put you in a better negotiating position at the dealership. If the dealer won’t beat the offer, you can always fall back on the better one.

» MORE: How to trade in a car that is not paid off

If you're negotiating by email or phone, you can ask to have the car delivered to you rather than picking it up at the dealership. Note that not all dealerships offer this service, and it’s typical for buyers to sign papers in person.

Before signing the papers, keep the following in mind:

Even if you’ve been preapproved for a loan, the dealership’s finance manager may offer to beat the terms of the loan. It doesn’t hurt to see if they can get you a better interest rate. Just make sure all the other terms of the loan are the same.

Before the contract is drawn up, the finance manager may try to sell you additional products and services. For example, buying an extended car warranty at the right price can provide peace of mind. But first, check the terms of the warranty that's included with the price of your new car. Most new cars have a bumper-to-bumper warranty covering at least three years and 36,000 miles, along with a powertrain warranty that typically lasts up to 60,000 miles. The powertrain warranty covers all the parts that make the car drivable, such as the engine, transmission and suspension.

Take your time reviewing the contract and don’t let yourself be pressured into signing just to get it over with. The contract will include the agreed-on sales price and additional figures like state sales tax, a documentation fee (which is charged by the dealer for filling out your contract) and registration fees.  

The first step to take when buying a car is to determine how much money you can afford to spend by getting preapproved for a car loan. Then, determine what car features are important to you and find a car that meets your budget, check reliability and ownership costs, test drive the car, get dealer quotes, maximize your trade-in value if necessary and then make the purchase by signing the paperwork.

You should aim to spend less than 10% of your take-home pay on your monthly car payment and less than 15 to 20% on car expenses overall, if you can. If you’re financing a car, do your research ahead of time. You can use a car payment calculator to figure out the right monthly payment for you. When you're ready to buy, try to put down 20% of the purchase price for a new car.

Dealers typically offer discounts at the end of the year, the end of the model year and around certain holidays like Black Friday. Buying a car during these times can save you money.

You should aim to spend less than 10% of your take-home pay on your monthly car payment and less than 15 to 20% on car expenses overall, if you can. If you’re financing a car, do your research ahead of time. You can use a

car payment calculator

to figure out the

right monthly payment

for you. When you're ready to buy, try to put down 20% of the purchase price for a new car.

On a similar note...

how to buy a car essay

You Can Do This: How to Buy a New Car Without Losing Your Mind

Use these three tips and the MotorTrend Buyer’s Guide to navigate the new-car market’s big challenges.

Zach Gale Writer Ryan Lugo Illustrator MotorTrend Staff Photographer Aug 11, 2022

how to buy a car essay

See All 10 Photos

Hey, new car shopper ! Welcome back. We understand wanting to stick your head in the sand with today's chaotic market conditions, but keep your noggin up—there's a way through this moment. Yes, things are different now, but if you know what's changed since you last bought or leased a new car, SUV, truck, or van, you're halfway there.

Open Your Mind to New Options

This is the underdog's moment. We know how tough it is to purchase a car in the best of markets; that's why it's so crucial you ask yourself how attached you are to the model or brand you've relied on previously. After all, you're probably not the only one who wants that specific brand, model, and trim. You might need to broaden your horizons, especially with ongoing supply issues.

We've seen this in action. MSRP overages were once reserved for high-end vehicles, but it's now a common occurrence. Price negotiations may now range from a little to a lot more than MSRP.  Look beyond the obvious, however, and you'll find cars that are just as good as what you thought you wanted, sometimes at a lower price.

Take the Alfa Romeo Giulia , our 2018 Car of the Year. The Italian sport sedan is as entertaining as it is beautiful. And the best part? Alfa has updated it over the years to keep competitive with newer entries. OK, that's not the best part. Because more buyers pine for a German or Lexus-badged four-door, you're more likely to find the Giulia for less than MSRP and with better financing terms. That's what less demand and more inventory does.

how to buy a car essay

Supply shortages don't always hit where you expect, either. Even the 2022 Honda CR-V , which is being replaced by a new model for 2023, has been hard to find on its way out of production. In May, Honda said more than half the CR-Vs hitting lots were sold before they reached dealers. Not interested in paying thousands more than sticker for the Hyundai Ioniq 5 electric car ? Try another EV. Chevy just slashed the price of the Bolt (our 2017 COTY) to less than $30,000, so you can check more options boxes or pay down a credit card with money you'll save over the better but more expensive Ioniq. Another option: the Volkswagen ID4, an electric SUV that was a 2022 SUV of the Year finalist. Our Ultimate Car Rankings and Car Match can help you find options.

Get Flexible or Order a Car

Timing also matters. Do you really need a car tomorrow, or do you just want one? Sometimes you have no choice, but on the chance you're not in a hurry, consider ordering a car instead of picking from what little inventory is available. You'll get to choose the exact options and the interior/exterior color combo.

When you've just gotta have a car now, take a deep breath and understand you may have to compromise on color or options. Frankly, this was true before the pandemic in some cases, too. If you're unhappy with the lack of inventory or the market adjustment beyond MSRP, try another dealer if you're lucky enough to have others nearby.

Be Honest About Your Budget

You'll thank us later for this one. The new car you want may be shinier and more feature-filled than your beater, but don't forget you're paying for that new vehicle across the next 36 to 60 months (or longer). As interest rates are still far higher than the historic lows early in the pandemic, your money buys less car.

Find a car near you

If the car you've dreamed about was a financial stretch before interest rates rose, now might be time to evaluate other options. Plenty of mainstream-branded cars are just as good as luxury models. They lack the cachet you crave, but how much sense does it make if you stress about paying more than MSRP for the next three to five years? If a luxury brand is non-negotiable, try a smaller model. A4 instead of A6. Corsair instead of Nautilus. Regardless of what you pick, loans longer than 60 months are generally not a great idea; downsizing your budget is an unsexy but effective way to give yourself peace of mind.

Ultimately with all that's happening, focus on what you can control. Arm yourself with knowledge and ask yourself what you're willing to be flexible on. Things may have changed since the last time you bought a car, but great cars exist across the automotive spectrum if you're willing to look. And whenever you need to brush up on which new cars are the best, you know where to come .

Watch! 2023 Honda CR-V First Look

With its sharp design, spacious cabin, cutting edge tech, and torque-y power train, is the 6th generation CRV Honda's best yet? Join MotorTrend's Alex Leanse to find out.

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How to Buy a Car Online in 8 Steps

Times are changing around car dealerships, as the Internet drives revolutionary changes in the car-buying process. Instead of spending days traveling from dealer to dealer looking for the car, truck, or SUV they want – and then hours more negotiating a deal on the vehicle – today’s buyers and lessees can visit dozens of dealers without ever leaving home. More and more often, they can complete much of the car-buying process without ever stepping foot outside their house. In some cases, they never have to visit a dealership. 

how to buy a car essay

PeopleImages / Getty Images

Traditional Car Buying vs. Online Car Buying

Buying a preowned or new car online has many advantages over the traditional process. Few consumers will tell you they enjoy the face-to-face negotiations that still occur on car lots every day. The back-and-forth between car buyers, salespeople, and sales managers is one of the last vestiges of free-wheeling price negotiation, but its days may be numbered. 

Fortunately, nearly every step in the car-buying process can be completed online with much less stress. In most cases, though, a final trip to a dealership is still needed to go for a thorough test drive, to sign the paperwork, and to take delivery of the car. Even that part of the process is changing, however, with more dealers willing to bring the car right to your home. Moreover, electronic signatures are beginning to take the place of signing paper documents. 

Electric-car builder Tesla has pushed the online car-buying process further than other manufacturers, with nearly the entire purchase process able to be done online. Tesla retailers aren't actual car dealers; they're simply showrooms. You complete the purchase process yourself, either at a kiosk or at your own home. That day’s Tesla price is the price you will pay, as there’s no room for negotiation in their system. 

In this guide, we'll look at eight easy steps to follow when buying a car online. We'll mainly be looking at purchasing new or used vehicles online from dealerships in this article. Check out our guide to buying a used car for information about buying from a private seller.

How to Buy a Car Online

how to buy a car essay

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1) Set a Budget

2) get preapproved for a loan, 3) find the right model, 4) check for car deals, 5) search the inventory at multiple dealers, 6) chat online with internet sales managers, 7) take a test drive.

  • 8) Finish Up at the Dealership  or Get the Car Delivered

Before you start the online buying process, there are some tasks you need to take care of. First on that list is setting a budget. Without knowing how much you can spend, it’s hard to know what cars and trucks should be on your shopping list. Our car affordability calculator can help you narrow down the price of vehicles you should consider, while our guide to how much you should spend on a car will help you determine a monthly payment that fits your budget.

Your car-buying budget should not be thought of as your monthly payment. Instead, you’ll want to consider the total cost of the car, including the total cost of interest you’ll pay over the term of your loan. You also need to consider all of the other costs of putting a car or truck on the road, including fuel, insurance, maintenance, and parking. 

If you still owe money on your current vehicle, that money will need to be paid back. You’ll either have to do it before you buy a new ride, or as part of your financing process. Not every vehicle costs the same to insure, so be sure to think about the cost of insurance for any models you’re considering. Our guide to auto insurance can help you determine the coverages you need.

Smart consumers know never to approach a local dealership, whether in person or online, without having a preapproved financing deal in hand. Not only does getting a preapproved loan help you set a reasonable price range, but it also gives dealers a benchmark deal they must beat if they want to be the ones providing the financing for your new or used car.

It’s easy to get a preapproved financing deal online. You can shop at banks, credit unions, and other lenders, or choose a site that can get you offers from multiple lenders with just one application. Our article on online auto loans shows the pros and cons of online lending – and how to get the best deal.

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Apply for financing today, and get up to four offers. Compare your options before visiting the dealership to make sure you get the best rate for you. It's free, quick, and easy.

how to buy a car essay

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Some buyers know exactly what car they want, right down to the color and trim, before they even think about starting to shop. Others have no idea what they want and need some guidance to find a vehicle that fits their needs and budget.

Our new car rankings and reviews use the consensus opinion of the nation’s premier automotive journalists, along with quantitative data on predicted reliability and safety to rank nearly every model you can buy. Our used car rankings and reviews add information about cost of ownership into the mix, which can help you find a car that fits your needs and is affordable to own.

If you want to get a closer look at the cars you're considering, go ahead and visit a local dealership to check out the cars, trucks, and SUVs they have available. You may have to be a bit forceful with the salesperson when you say you’re just looking. Remember, you can always leave if you’re not comfortable. Sit in the driver’s seat of cars on your short list and check out their comfort and visibility. Request a test drive if you want to get a feel for the vehicle. However, you’ll want to resist the urge to start talking about making a deal – that will come later.

Not all vehicles are home runs in the automotive marketplace. If sales aren’t meeting an automaker’s expectations, or the vehicle is reaching the end of its product cycle, there may be a money-saving incentive available to boost sales.

Shoppers looking for either new vehicles or certified pre-owned cars should check to see if there are any available on the models they are considering. You can save thousands if you’re able to take advantage of a cash rebate, low-interest financing offer, or subsidized lease deal. Cash back deals (or rebates) effectively lower the car price, while low-interest financing deals reduce or eliminate the interest on a car loan. Lease deals lower the amount due at signing, or make each monthly payment smaller.

You can find the best purchase incentives available on our new car deals page. Lease customers can explore our lease deals  page to find offers with low monthly payments, small amounts due at signing, or both. Certified used car shoppers can find special financing deals on our used car deals page.

how to buy a car essay

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Not long ago, you needed to hop in your car and drive from dealer to dealer to see what was on their lots. Now, customers can look online to check the inventory of both new and used cars at dealerships far and wide. The U.S. News car finder tool can show you which dealers have the vehicles you’re looking at in stock. The individual dealers’ websites provide even more detail about which vehicles are available.

With new car or truck purchases, you should talk to a local dealer even if the specific model you’re considering is not in their stock. One may be arriving in an upcoming delivery, and dealers frequently trade stock with other dealers when buyers want specific models, colors, or features.

You can save some time by contacting multiple local dealers with one inquiry through the U.S. News Best Price Program . The program connects buyers and lease customers with local dealers offering prenegotiated prices. Buyers save an average of more than $3,000 when they use the Best Price Program .

Search Outside Your Area

Shopping online for a vehicle allows you to search for cars you’re considering in your local neighborhood – or even hundreds of miles away. It’s a good idea to look beyond your area at places and dealerships where you might get a better price. If you’re shopping for a full-size pickup , for example, check at urban dealers where they might not be as popular. Looking for a plug-in hybrid ? Check some rural dealers where hybrids may not be in demand, and the dealer may be willing to sell them for less.

The next step in an online vehicle purchase is to email or chat with a dealership's Internet sales department or Internet sales manager. Dealerships frequently assign experienced people to these departments, as they understand the potential sales boost the Internet offers and know that consumers buying online tend to be more knowledgeable and savvy than those walking through the front door. You have a better chance of a no-haggle buying experience on the Internet than you do in a face-to-face purchase at a dealer. 

Your initial conversations will be focused on the kind of vehicle you want, whether they have it, or whether they can get it. They may ask you about financing and trade-ins. At this point, it’s fine to be vague and respond that you don’t yet know what you’re planning to do for your auto loan and the sale of your current car. Since you want to keep the deal focused on the price of the car, keeping other components out of the initial conversations is a good idea. 

If you are looking at a used car, ask the dealer to provide a copy of its vehicle history report so you can see its accident, repair, title, and registration history. If the dealer won’t provide the report, get the used car’s vehicle identification number (VIN) and order yourself an AutoCheck or Carfax report.

how to buy a car essay

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Eliminate Stressful Face-to-Face Negotiations

One of the greatest benefits of buying a car through a dealer’s web sales department is you can eliminate the adversarial face-to-face negotiation process that terrifies many car buyers. Though successfully negotiating a price can save buyers a tremendous amount of money, the idea of face-to-face negotiation turns many people off. Buying online doesn’t automatically make it a no-haggle deal, but it can reduce the stress of being seated across a desk from one another. 

Of course, the negotiation process will still happen, but it will occur through email and you’ll have a written copy of everything that was offered, plus time to fully evaluate any offers before you respond. You’re not limited to business hours, and there’s no pressure to get the deal done so you can get home more quickly. When you do start to negotiate, it’s important to remember that a buyer can't suggest a lower price after their first offer, and a seller can’t propose a higher price after their opening offer. 

The least important number in the negotiation for a new car is the vehicle's sticker price, or MSRP. Instead, your online research – including the buying insights at the end of many of our new car reviews – will give you an idea of the amount you should pay. In most cases, the purchase price will be a bit higher than you wanted it to be, and the dealer will accept a bit less than they wanted to get out of the sale. That’s how negotiation works. 

One great benefit of negotiating online is that most emotions are taken out of the deal. It can be easy to forget that car buying is just a business transaction. While it’s fine that you’re trying for the lowest price you can get, it’s also okay for the dealer to make a reasonable profit. However, when buyers and sellers start doing illegal or unethical things, it’s time to step away and look for a different deal. 

It’s a common and accepted practice to take the offer you have, and let other dealers know they need to match or beat the deal if they want you to buy from them. 

If all goes well in the online negotiation process, you’ll have a deal in place, so very little needs to be done at the dealership. You’ll just need to get a final appraisal on your trade-in, take a test drive, and sign documents.

You need to take a test drive in the exact vehicle you are purchasing. Not all new cars are perfect from the factory, so you want to drive the exact car you’re buying before you sign the paperwork. Used vehicles need to be thoroughly checked out by an independent mechanic, though this requirement is optional if you’re purchasing a certified used car.

More and more automakers and dealerships have programs where salespeople can bring vehicles to your home for test drives. Hyundai’s Shopper Assurance program is an example of a program with at-home test drives. Getting a test drive at your home provides an excellent opportunity to drive the car on the roads you normally travel. Not all car companies offer at-home test drives, so you may need to visit a dealer for this step.

There are right and wrong ways to test drive a used car. Before you get behind the wheel, read our guide to test driving a used car . Many of the topics discussed in the article also apply to new car test drives.

8) Finish Up at the Dealership or Get the Car Delivered

In most cases, you’ll still have to visit the dealership to complete the sale. You should have a nearly complete deal in hand from your online negotiations, with a set out-the-door sales price that includes all fees and taxes and financing either through your preapproved auto loan offer or the dealership's finance department.

Be sure to ask the dealership what paperwork they need from an outside lender. This ensures that you don’t have to run back and forth between the bank and the auto dealer, or feel compelled to take a dealer’s financing offer.

The dealership will need to do a final appraisal on your trade-in. Even if the amount is lower than you think it’s worth, don’t automatically pull it out of the deal and plan to sell it yourself. If it has a high value, and the state you live in has a high sales tax rate, leaving it in the deal can save you some money by reducing the difference between the trade-in value and the new car price. 

The final thing you'll need to do at the dealership is to sign the purchase paperwork. It is crucial that you read each document before you sign to ensure it is accurate and complete. Make sure the papers match the deal you agreed to online and no spaces are left blank. Never sign documents that are incomplete or incorrect, even if you are told they'll be corrected later. It's easy to change the paperwork before your signature is on it, but it's much harder once you've signed.

If a dealership changes any price quotes when you show up in person and refuses to honor the online agreement you came to, politely decline and find another dealer. Your most powerful negotiating tool is your ability to walk away, though few buyers take advantage of it. 

While you are signing the paperwork, the dealer will likely try to sell you several add-on products , such as extended warranties, protection products, or gap insurance . Before you purchase any expensive add-ons, it's important to research both the product and the company behind them. Most dealer add-ons are also available from third parties outside of the dealership, where they can be much less expensive. Many lenders and insurance companies sell extended warranties, and you should compare them to the dealer's offer before you buy one. Before purchasing gap insurance from a car dealer, you should check with your auto insurer to see what they offer.

U.S. News takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

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How to Buy a Car Essay

How to Buy a Car Stephanie Gallion ENG 080 Looking for a new car? Well here are ten easy steps to finding the car that best suits you and your needs. First step, “What kind of car do you need?” Instead of worrying about what you are wanting, worry about what you are needing. What are you going to use the car for? How many seats do you want to fill? Do you care about gas mileage? What kind of driving do you do the most? How far do you drive every day? Usually people, when buying a new car, only buy the car that is their favorite color, or has nice rims, ect. Mainly the one that is most eye-catching rather than the one that would be the smart choice. Here are a few other questions to keep in mind when you begin your car …show more content…

It is very important to do your research. Review the changes that they have made from the older vehicles. Find the specific car you want by searching for make, type, price range, or market segment. This will help you a great deal during your process. Step 5, “Have you considered all ownership costs?” One car might be cheaper to buy, but more expensive to own. You ask why? If two cars cost the same to buy, one of those cars can depreciate at a faster rate or cost more to maintain or insure. You should estimate the long-term cost of ownership of the vehicle you want to purchase. These include fuel costs, insurance, maintenance, and depreciation. Step 6, Research Options. By using and completing steps one through five, you should know which car will work for you now. Most people are used to going to local dealership to find for the car they are looking for. Now days, it is a waste of time and money . Looking online is a lot easier and quicker. It helps tremendously. The only thing you should have you do in person is test drive the car and sign the contract. Remember, you don’t want to go to the dealership until you are really ready. Step 7, Schedule a test drive appointment. To get some sense of the business atmosphere that you are working with, it will be a great idea to make your initial contact with the dealership by phone. It can also boost your confidence when dealing with one of the salespeople. Then you should call the

Nt1310 Unit 5 Lab Questions And Answers

2 What are some ways that you can save money when buying a car? Don’t buy the first one you see look around for the best deal. Call around and get the best prices on insurance, repair shops and finance charges.

Car Buying 101 Research Paper

Another way you can determine if the car is worth your hard-earned money is by having it inspected by a professional. By taking your car to a trusted mechanic, you can discover what is wrong with the car under the hood. In most cases, your mechanic can inspect your car to make sure that the engine is good, the transmission is working properly, and there are no other major problems with the vehicle. Don’t be shy about getting it inspected, the cost of doing so is significantly less to paying for a new motor.

Use Car Finders

You should always purchase your car from a reputable dealership. The car salesman should listen to your concerns and answer all of your questions. If you research your options, you can find a great used car.

Distributive Negotiation Strategies After Buying A Used Car

After deciding to purchase a used car, it is imperative to develop strategies and goals that will be used in negotiation to achieve the best deal possible. The first step in buying a new car is to determine the history of the car where vital information such as its pedigree, whether it has ever engaged in an accident or affected by natural disasters, and if it has any recalls. One important strategy in planning to begin the negotiations is to find the market value of the car. It is vital to note that unlike the new car, the used car market is more fluid. During the negotiation process, it is vital to get the basic information of sales person's and the dealership website. The dealership should also avail the warranty on the used car. Another important strategy that I employed was to make to make the salespeople understand from the first that I wanted a good deal. I did this by exerting my position as a price buyer.

Used Car Evaluation

When you thinking about purchasing a made use of automobile you will certainly find out as much as possible about the make and design you are thinking about acquiring. You have to understand whether the automobile has any recognized issues, if trusted, exactly what is the typical expense of running and just how much the insurance coverage will certainly

Myths About Cars

If you are in the market for buying a car, you may be feeling somewhat overwhelmed that the variety of choices and options available. In particular, many people find that they believe some common myths about buying used cars that can further complicate this process. After you have the following couple of misconceptions dispelled, you should find you are much better prepared to navigate the process of buying a car.

Best Used Car Analysis

Set up a budget: Know exactly how much you're willing to spend, whether on monthly payments or all at once. Car salesmen sometimes have a reputation for being pushy, but they can't make you overspend if you stick to the budget that you decide. In order to find the best used cars possible, make a list of features that will add or subtract from the total price that you're willing to spend. For example, if you absolutely must have air conditioning, subtract the cost of repairing or replacing a broken A/C unit when you find an otherwise ideal vehicle.

Howard Bentley Auto Case

If you cannot afford the high-end truck or SUV, stick with the moderately-priced sedan. When you are applying for your next loan set aside a lot of money for a down payment. This will show that you are a more attractive loan candidate because you will be asking for less money over the life of the loan. When you are applying for your next vehicle online, make sure to only do it at places you can trust, Your credit score will be affected every time you apply, so only do at Howard Bentley Auto to avoid having your score

Leasing vs Financing (Leasing vs Buying) Essay

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Emergency Money When Buying A Car Essay

What are some of the ways that you can save money when buying a car? A good way is before buying a used car take it to a mechanic to make sure there are not many issues with the car. Other solutions is to not just buy the first car you see and to look around for the best deals. Another would be to take care of the car periodically.

Used Car Terminology

Whether you're looking to buy or sell a used car, you're going to hear many different terms. You'll need to learn what goes into determining the price of a used car to understand how to negotiate the best price for yourself too. This guide will help you when you're buying or selling a used car.

Persuasive Speech On A Car

Transition: I am going to start by telling you the things you need to consider before you start looking for a car. What paperwork you need to bring with you to the dealership and will help you know when you should walk away.

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In today’s day and age of rapidly changing technology and ways of shopping, preparing to buy a vehicle can be a daunting task. What app should I download? Am I finding the best deals? Should I buy new or used? These are all very common questions to most people when they are preparing to buy a vehicle. The information is out there and attainable, you just have to know how to find it. Last year I had the opportunity to buy a vehicle, but my father also wanted me to learn about money in this process. I was very excited to get a new truck so he didn’t have to push very hard to get me to start looking, but he did give me some pointers along the way.

Descriptive Essay Car

So now that he or she knows their budget and what type of car they want it's time to look for their used car. There are several ways to find a good used the car, he or she can go to a used car dealer and see what they have in their inventory and see if any fits their needs. The second and more efficient way to find a good used car is to look online. He or she can use websites like. Craigslist.com, Autotrader.com, cars.com, and many others. Let's say he or she found

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Related Topics

142 Car Topics & Tips for Writing a College Essay about Cars

Let’s say you received a task to write an essay about cars. The topic might be interesting for you, but you may still have no idea how to organize your paper. Well, this article is for you.

Below, we talk in more detail about:

  • Tips on how to write an essay on cars.
  • Examples and prompts for different types of essays.
  • Topics ideas for consideration and inspiration.

Our experts have tried to draw only the best advice for a car essay. Take a look at them, use them, and good luck!

  • ⭐ Best Topics about Cars

🚘 Types of Car Essays

🏁 50 car topics to write about, 🚗 interesting car topics.

  • 🚦 Argumentative Topics

🚚 Automotive Essay Topics

  • 🛣️ Car-Related Topics
  • ⚙️ Useful Tips

🔗 References

⭐ best topics about cars in 2024.

  • The future of electric and hybrid cars .
  • The impact of self-driving cars on employment. 
  • Ferrari’s influence on exotic car culture and design.
  • Artificial intelligence in car design and engineering.
  • 3D printing in automotive manufacturing .
  • Future trends in car-sharing and ride-hailing services .
  • Conserving classic cars for future generations.
  • The expansion of electric vehicle charging infrastructure.
  • Electric trucks and commercial vehicles.
  • The art of car customization .
  • The impact of Tesla on the electric vehicle market .
  • The role of car manufacturers in promoting road safety .

There are several different types of essays. This section will talk more about what paper about cars you can write.

  • Descriptive essays . In such a paper you can describe your first car or the car of your dream. In descriptive essays on cars, you can give any details that you like. Still, you should try to mix them with purely technical characteristics.
  • Personal essays . Here you can tell about any experience of yours related to vehicles. For instance, speak about the first time you have driven a car or the first time you had an accident. In this kind of essay about cars, you have all the chances to show your creativity.
  • Compare and contrast essays. In such a paper, you might compare two types of cars. For instance, talk more about gas cars and electric cars. Write about which car is faster or more expensive.
  • Advantages and disadvantages essays. In this paper, talk about the pros and cons of cars. For example, you can mention the convenience of cars and how comfortable you feel in your vehicle compared to public transport. However, tell about an increased risk of getting into an accident. In this type of essay, back up your arguments with evidence.
  • Persuasive essays. Here you’ll need to take a position and persuade a reader to accept it, as well. For example, you might write about the harmful effect of cars on the environment. Therefore, more and more people must start using public transport.

After reading our tips, you may still be unsure about what exactly to write your essay about. Well, don’t worry. Here we have provided car essay topics that will help you get started or give you enough inspiration to write.

  • How will cars look in the future? Write an essay about cars in the future. Mention whether everyone will have cars, how the cars will look, how much will they cost. Will there be flying cars? You have room for imagination. 
  • Reasons why car accidents happen. Mention all the common reasons for car accidents to occur. If possible, give examples of accidents that occurred due to those reasons. 
  • Car or public transport : an ongoing debate. Write a persuasive essay about what is better to use: car or public transport. Mention the convenience and the environmental effect of both types of transportation.
  • Self-driving cars: has the future already come? In this essay, explain the concept of self-driving cars. Mention the role of Tesla in the construction of self-driving cars. 
  • The story of my first car . Write a personal narrative essay about the first car you ever had. Share the story of getting the vehicle and the emotions you’ve experienced. Provide additional details.
  • My dream car . Let your imagination run free. Give any details you’d like. Still, don’t go overboard!
  • The pros and cons of driverless cars . What are the benefits and downfalls of using driverless vehicles? Research the topic and write the essay.
  • An analysis of the automotive industry. nalyze the importance of the automotive industry. Additionally, mention its issues.
  • Electric vehicles : their effect on the environment and society. Write about the pros and cons of electric transportation. Focus more on the electric vehicles’ influence on ecology.
  • The impact of automobile use on pollution . Write about the kinds of pollution vehicle use might cause. Do all vehicles have the same influence on the environment?
  • My favorite toy. In case your beloved toy in childhood was any type of vehicle, share your story. Write about how you got it and what emotions you experienced. Do you still have that toy? 
  • Why should you use automobiles ? Write a persuasive essay on the advantages of cars and why people should use them.
  • Car safety: what you shouldn’t do while driving. Write about activities that are not encouraged to do while at the wheel (eating, texting, talking on the phone). Mention how those actions are related to car accidents. 
  • The controversial issue of flying cars.
  • Difference between hybrid cars and traditional cars.
  • Analyze the dangers of distracted driving.
  • Explain why regular changing of the oil in your car is crucial for safe driving.
  • Examine the dangerous habits of drivers and explain how to overcome them.  
  • What should you do to avoid motor vehicle accidents?
  • Compare electric and gasoline-powered cars and explain which are better in your opinion.
  • Benefits of Honda Pilot car. 
  • Describe the shortcomings of autonomous vehicles .
  • Are speed limits important for safe driving?  
  • Analyze the necessity of buying energy efficient cars .
  • Discuss the advantages and disadvantages of hybrid vehicles .
  • Explore the evolution of automobile industry in the US, its opportunities and challenges.
  • How to change the oil in your car .
  • Explain why lack of parking in big cities is one of the most urgent problems for car owners.
  • Can we call electric cars the future of automobile industry?
  • Analyze the market demand for alternative vehicles.  
  • Describe the specifics of electric vehicles manufacturing in the UK.
  • Compare gasoline and electric cars .
  • How to wash car like a pro .
  • What are the drawbacks of electric cars?
  • Examine the peculiarities of different trucks.  
  • Is it possible to survive without a car in the modern world?
  • Analyze the difficulties and expenses connected with owning a private car .
  • Does the concept of automated cars have future?
  • Discuss if switching to electric cars will help to reduce the environmental problems.
  • Explore the impact car emission has on global warming and suggest the ways to reduce it.
  • Describe the environmentally friendly cars and why they are important.
  • Discuss the peculiarities of the fuel cell vehicles.
  • Examine the ways cars are presented in popular culture .
  • Explain why people choose to buy luxury cars .
  • Analyze how automobiles influenced the transformation of American culture.  
  • What are the reasons of American car industry success?
  • Describe the specifics of Volkswagen cars .
  • Disadvantages of cars .
  • Do you think using cellphones while driving should be banned?
  • Examine the impact human factor has on automobile industry development.
  • The legacy of the Nissan GT-R from the Fast and Furious franchise.
  • Study the representation of automobiles in modern art.
  • The evolution of Lamborghini from tractors to supercars.
  • The iconic status of the DeLorean DMC-12 from Back to the Future .
  • What are the causes and consequences of aggressive driving behavior ?
  • The Ectomobile as a symbol of cultural iconography in the Ghostbusters franchise.
  • The timeless appeal of James Bond’s Aston Martin .
  • How our choice of vehicle reflects who we are.
  • An analysis of the emotional connection between humans and cars.
  • How do aesthetics and functionality shape our perception of automobiles ?
  • The role of cars as extensions of characters’ identity in Mad Max: Fury Road .
  • The evolution of the Batmobile in the Batman franchise.
  • Study the therapeutic benefits of driving for mental health.
  • What are the stereotypes and realities of men and women drivers?
  • The significance of automobiles in coming-of-age literature.
  • Research the psychological effects of fast driving and adrenaline rush.
  • The influence of advertising on car purchases.
  • Pixar’s Cars and the representation of American car culture.
  • Trace the evolution of car chases from classic Hollywood to modern blockbusters.
  • The shift in attitudes toward car ownership in large cities. 

🚦 Argumentative Essay Topics about Cars

  • Will electric cars fully replace traditional combustion engine vehicles ?
  • Should stricter regulations be enforced on car manufacturers ?
  • Does owning a vehicle provide a sense of independence?
  • Which brand offers the best value for money, BMW or Mercedes-Benz?
  • Should governments provide more incentives for the adoption of electric vehicles?
  • Are autonomous vehicles truly safer than human drivers?
  • Are luxury car brands overpriced, or do they offer superior quality and features? 
  • Classic cars: a good investment or overvalued collectibles?
  • Are electric cars more affordable than traditional vehicles in the long term?
  • Will alternative modes of travel replace cars in the coming decades?
  • Should vintage vehicles be preserved for future generations?
  • Which iconic muscle car reigns supreme, the Dodge Challenger or Ford Mustang?
  • Do vehicle choices reflect personal values and beliefs?
  • Are vehicles a financial burden or investment for individuals and families?
  • Does traffic congestion influence drivers’ mental health? 
  • Are higher speeds on highways safer or more dangerous for drivers?
  • Do luxury vehicles symbolize success or excessive consumption ?
  • Will car-sharing services replace traditional ownership models?
  • Will Uber lead to a decline in personal vehicle ownership?
  • Who is responsible in the event of an accident – the driver or the manufacturer?
  • The electric vehicles’ impact on the automotive industry.
  • Green initiatives and practices in the automotive industry .
  • The role of artificial intelligence in car manufacturing and design. 
  • Diversity and inclusion in the automotive workforce. 
  • The impact of trade wars and tariffs on the global automotive market .
  • Opportunities for growth in emerging markets for automotive sales .
  • The role of big data and analytics in improving vehicle performance and customer experience.
  • Consumer trust issues in autonomous vehicles. 
  • The influence of consumer preferences on car design and features.
  • Opportunities for collaboration between automakers and tech companies.
  • The rise of subscription-based models for car ownership and leasing. 
  • Challenges in recruiting and retaining skilled labor in the automotive industry. 
  • The impact of COVID-19 on the automotive supply chain and production.
  • Sustainability and the use of recyclable materials in automotive design .
  • How government regulations are shaping the future of the automotive industry.
  • The potential of 3D printing in automotive manufacturing and prototyping.
  • Assess the benefits of using virtual showrooms in automotive retail. 
  • Challenges in implementing sustainable practices in dealerships and service centers.
  • The role of design thinking in creating user-centric automotive experiences. 
  • How autonomous vehicles are transforming public transportation systems.

🛣️ Car Related Topics

  • The hidden stories behind famous car logos and emblems.
  • Explain the phenomenon of car brand loyalty and why people stick with a particular brand.
  • What’s psychology of road rage and aggressive driving ?
  • The influence of personal memories on emotional connections to vehicles.
  • Study the iconic status of the Le Mans 24-hour race.
  • How influence of technology innovations on Formula 1 .
  • Explore the cultural significance of cars in American society.
  • The design and engineering process behind creating a concept car.
  • The evolution of taxi services from horse-drawn carriages to app-based platforms. 
  • Are microcars a viable solution for congested cities? 
  • The influence of car culture on music, fashion, and lifestyle trends.
  • Study the psychological and cultural implications of car color choices.
  • Are flying cars a realistic vision or science fiction? 
  • The history of women in the automotive industry .
  • Unconventional uses of vehicles in art installations and performances.
  • The role of historic car restoration in preserving cultural heritage. 
  • The influence of drive-in restaurants on contemporary dining habits.
  • The role of cars in shaping cultural identities and national pride. 
  • How do road trips impact mental health and well-being? 
  • Car rituals and traditions around the world.

⚙️ College Essay about Cars: Useful Tips

Preparing for composting an essay about a car, you may wonder where to start and how to handle it. In this section, we will introduce some helpful tips. See what you should include and elaborate on in your car essay.

  • Get creative. Some students may think that essays on cars are not the right place for creativity. Writing about cars should be full of some specific terms and descriptions of various car details. However, it is a mistake. Essays on cars can omit such issues but remain informative and catchy.
  • Keep your opinion to yourself. You don’t have to present a positive or negative conclusion about cars. You are not required to have an unequivocal statement when you write about such a difficult topic. In order to fulfill this requirement, you can even use a thesis statement creator to come up with unbiased foundation for your content.
  • Don’t try to say everything at once . Your essay has a word limit, so you’re better to find one topic to talk about. Focus on one aspect of the issue, such as environmental impact, and state your position with evidence.
  • Change an angle. If you are not interested in a topic but need to write about cars, look at the subject from the other side. If you are not willing to elaborate on ecological impact, write about races. If you don’t want to talk about sports, write about the invention of the first car. The subject is extensive, so everyone will find something of their own, especially if you were not given a topic in advance.

Thus, writing essays about cars can also be exciting. If you think for a while, you will find ways of writing your paper creatively.

Thank you for reading this article! We hope that you found it useful. If that is the case, don’t forget to share it with your friends and comment.

Further reading:

  • Family Values Essay: How to Write, Essay Topics & Examples
  • Impressive Essay on Being Late: Hurry Up with Exciting Ideas
  • Smoking Essay: Writing about Students and Teens Smoking
  • Subjective Essay: Example, How to Write and Topics
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  • Persuasive Essay Outline: Houston Community College System
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How to buy a good car essay

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Guide: How to buy a car in Europe and legally ship it to Russia

how to buy a car essay

First things first — decide which car you want to buy and bring to Russia. Most often people choose cars that cost less than €50,000 and that are three to five years old. This is because western sanctions apply to more expensive cars; those that are either newer or older will cost much more to clear customs.

3 ways to buy a foreign car overseas:

  • Import the car yourself;
  • Order the car’s delivery through an intermediary company;
  • Order the car’s delivery through an individual intermediary.

One of the most popular options is to buy a car in Germany. For example, go to a German car website (such as mobile.de) and there you can find and choose a car. The website lists the contact details of the car dealership, which then finalizes the purchase. 

With the dealer, you need to clarify the car’s availability, its condition, whether the dealer will sell it to a Russian citizen, will they rebate VAT after the sale and what type of payment method can be used. You should also clarify if the dealer will provide a transit license plate and whether they’ll prepare customs documents. If not, you’ll have to do it yourself or look for an intermediary firm on the spot.

If everything is in order, you’ll have to check the car’s condition, sign the contract and leave a deposit (€1,000 – €5,000). You can do it yourself, ask friends to help or rely on an intermediary. In the latter two cases you’ll have to give them power of attorney.

Documents to cross the border

Torfyanovka border crossing point. Leningrad region, Russia.

Torfyanovka border crossing point. Leningrad region, Russia.

Even before your car arrives at the Russian border, you’ll have to contact the Central Excise Customs Office at your place of residence in Russia in order to receive a permit to bring the car into the country. The process of customs clearance is time-consuming, which is why many people usually go to customs brokers. The cost of their services starts at 15,000 rubles (about $250/ €250 ).

At the customs office you’ll need to report the car’s make, its year of manufacture, its engine capacity and other data, as well as for the person who will actually bring it in. On the basis of this information, the customs office will calculate the deposit. You’ll need a copy of the vehicle’s registration certificate (you can get it from the dealer via email).

You’ll also need to write a statement about your intention to bring in a car, asking for permission to pay a deposit. In your statement, you need to specify the car’s price, the entry point and a commitment to deliver the car within a specified timeframe. Along with this statement, you’ll need to pay the security deposit.

It’s best to transfer a little bit more money because the final amount is calculated in euros but is paid in rubles according to the Central Bank exchange rate on the payment day. This will be ascertained afterwards when the buyer brings the car to customs in Russia. You can pay via bank transfer based on the issued receipt or at the customs office with a 2% fee.

For the registration of payment documents Russian citizens need to provide:

  • A state-issued identity document (domestic passport)
  • INN (TIN) certificate
  • An international passport

Foreign nationals will need:

  • A state-issued identity document
  • Registration documents for place of residence or stay
  • Permanent residence permit or a visa
  • INN certificate if you have one
  • Official international driver’s license

Belarusian customs officers checking a car at the international border crossing point

Belarusian customs officers checking a car at the international border crossing point "Urbany" on the Belarusian-Latvian border.

The deposit can be made either by the car’s future owner or by the customs representative or a broker. In that case, a notarized power of attorney from the future car owner is required. 

As a confirmation of the deposit, you’ll be issued a customs receipt with the information about the car. The same information is repeated in the warranty certificate. You’ll need the original documents at the border. 

When you have the customs receipt and the warranty certificate, you can take the car from the dealer and ship it to Russia. If you plan to make the payment in cash, you should remember about the $10,000 export limit (or its equivalent in other currency) from Russia per person. For larger amounts, the money should be declared and their origin source confirmed – or travel with a companion who can also declare part of the total sum. 

Bringing the car across the border  

Torfyanovka border crossing point on the Russian-Finnish border.

Torfyanovka border crossing point on the Russian-Finnish border.

Prepare the car documents (right away ask for two originals of the sales contract) and the documents for customs from a local car dealer. You will also need to get transit license plates if the seller didn’t arrange them in advance (for an additional fee or for free). 

At the local customs you’ll need to get an exit declaration for the car, a registration certificate and a document with a barcode for a VAT refund (MRN). You will need to scan it when exiting the EU. You need to ask the seller in advance if they can refund the VAT and how they can transfer the refund in the current situation. 

Usually, cars are individually brought into Russia through Belarus or Scandinavian countries. It’s widely believed that the simplest way is to do it through Finland. 

When a car owner enters Russia by car, there’s a 31 kilogram per person restriction for duty-free luggage transportation. Also, you can’t bring euros into Russia now. 

After passing customs at the Russian border the car should be brought to the customs office at one’s place of residence within the timeframes outlined by customs. 

Preparing the car documents   

Traffic police officer checks driver's documents in Moscow.

Traffic police officer checks driver's documents in Moscow.

After the car is brought to the customs office at one’s place of residence, the car owner fills a declaration and attaches all required documentation. This task can also be done by a customs representative. 

Required documents:

  • Car document copies (contract of sale, insurance);
  • A customs receipt and a warranty certificate certified by an inspector (issued after the fact of paying the deposit);
  • Passenger customs declaration TD-6, where the car’s information is stated (its make, model and VIN);

If you have all the documents and they’re filled out accordingly, preparing all the documents takes from one to three days. In individual cases, however, a customs inspector could ask for a notarized translation of the documents.

After the declaration is issued, the car is delivered from the customs office to the Temporary Storage Warehouse (SVH in Russian). At SVH the car owner acquires the passport for his vehicle (PTS). Next, the car should be registered with the traffic police (GIBDD in Russian) – and finally you can hit the road.

How much does Russian customs clearance cost  

Vehicle registration plates.

Vehicle registration plates.

To assess the price of individually importing a car into Russia, apart from the delivery expenses, you need to keep in mind three fees:

  • Customs clearance fee (depends on the car’s cost).
  • Recycling fee to the government for transport environmental utilization (depends on the car’s year of manufacture).
  • Customs fee (depends on the car’s year of manufacture, its cost and engine capacity). This is the biggest expense.

You can quickly calculate the cost of bringing a foreign car into Russia with an online calculator ( here , for example). On average, you should expect to pay €5,000 on import customs for a car that originally sold in the €15,000-€20,000 range and which is three-five years old. Before paying, you should clarify if there are possible benefits available, because their list is always changing.

As of now, you don’t have to install the emergency services call button, ERA-GLONASS, into your car when bringing it to Russia. But this is temporary and it will be changed by February 1, 2023.

READ MORE: 5 MOST EXPENSIVE apartments for rent in Moscow (PHOTOS)

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how to buy a car essay

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What's better: buy essay or write it?

Choosing the best essay writing tip.

Entering college might a challenging thing! The whole is going to change with one simple email confirming your admission. How to get it? Beside excellent grades, participation in non-school activities, awards and achievements, there's another essential thing. You need to send an essay to the admission office along with the papers. You should convince committee that you're worth studying there.

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Essay on Moscow

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  • Category: Free essays

Moscow is the capital and largest city of Russia. It is the fourth largest city in the world, and is the first in size among all European cities.

Moscow was founded in 1147 by Yuri Dolgoruki, a prince of the region. The town lay on important land and water trade routes, and it grew and prospered. During the 1200’s, Tartar invaders from Asia conquered Moscow and other Russian lands.

Moscow grew rapidly during the 1600’s. The czars built palaces in the Kremlin, and nobles built mansions. New churches and monasteries arose, and industries developed. In 1703, Peter the Great began building a new capital at St. Petersburg. But Moscow remained an important center of culture, industry, and trade. In the fall of 1812, invading French Troops under Napoleon I entered Moscow without a struggle. Most of the people had left the city. Soon afterwards, a fire destroyed most of Moscow . After 35 days, the French troops left the city and began a retreat through the snow and cold.

In the 1917 revolution, the government fell to the Bolsheviks. They moved back to Moscow in 1918 capital.

Moscow lies in the north-central part of the European section of Russia. The Moscow River flows through the city. Moscow is built in the shape of a wheel. At the center of the wheel stands the Kremlin. This old fortress is the center of the Russian government. Inside its walls are beautiful cathedrals and palaces, as well as government buildings. Some of them date from the 1400’s.

Red Square lies just outside the Kremlin wall. It took its name in Russian from an old word meaning both beautiful and red. There, huge military parades celebrate special occasions. Thousands of people line up daily at the Lenin Mausoleum to view the preserved body of Lenin.

Opposite the Kremlin on Red Square is GUM, the largest department store. Saint Basil’s Church is also on Red Square. This 400-year-old building is part of the State Historical Museum. The Russia Hotel, one of the world’s largest hotels, faces the Kremlin near Red Square.

Muscovites are proud of their subway system, called the Metro. The city has more than 70 subway stations, which look like palace halls and are the fanciest in the world.

Muscovites have many facilities for recreation. Luzhniki, a huge sports area, includes Lenin Stadium, which can seat about 103,000 persons. Every year, about 7 million people go to Gorki Park, Moscow’s most popular amusement center.

The Bolshoi Theatre presents ballets that many people consider Russia’s highest artistic achievement. Young dancers are trained at the Bolshoi Theatre’s school. The nation’s largest symphony orchestra performs at the Tchaikovsky Conservatory. In addition, Moscow has a number of famous drama theatres, such as the Maly and Moscow Art theatres.

The city has about 150 museums and art galleries. Dazzling treasures that belonged to the czars are displayed in the Armory Museum in the Kremlin.

Moscow State University is the largest university in the country. It was established in 1755, and has more than 30,000 students. Moscow has more than a thousand elementary schools and high schools, and over 80 specialized institutes.

About 3,000 main and branch libraries operate throughout Moscow. The Lenin State Library, the largest library in Russia , has one of the largest collections of books and manuscripts in the world.

Moscow is also the most important industrial city in Russia. Its factories produce a wide variety of products, but chiefly automobiles, buses, and trucks. Other important products include chemical, electrical machinery, measuring instruments, steel, and textiles.

The city is the transportation center of Russia. Moscow has three major airports. The Moscow Canal links the city to the great Volga River.

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Ukraine war latest: Ukraine 'destroys Russian Black Sea minesweeper'

Ukraine's navy says it has destroyed a Russian Black Sea fleet minesweeper. Meanwhile, an attack on a residential area in Kharkiv left six civilians injured - with Ukraine saying it is investigating the bombing as a potential war crime.

Sunday 19 May 2024 17:40, UK

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  • Six killed - including pregnant woman - in strikes on Kharkiv recreation area
  • Ukraine investigating 'potential war crime' after civilians wounded
  • Ukrainian soldiers reveal how they were secretly moved ahead of Russian invasion
  • Russia takes control of village in Kharkiv - defence ministry

We're pausing our coverage of the Ukraine war for the moment.

Scroll through the blog below to catch up on today's developments.

Russian forces likely intend to launch the second phase of their offensive following their anticipated seizure of Vovchansk, three miles from the Russian border, according to the latest analysis from the Institute for the Study of War (ISW).

President Volodymyr Zelenskyy said yesterday that Russian forces advanced between five and 10 kilometres in the northern Kharkiv region before Ukrainian forces stopped Russian advances.

The ISW says Russian forces are currently prioritising the seizure of Vovchansk because it is likely one of the remaining tactical objectives of the first phase, noting it is the largest settlement immediately on the border that would provide Russian forces with a staging ground to prepare for and launch the second phase.

The Russian objectives of the second phase are not yet clear, the ISW says. It could be to expand the "buffer zone" further in width along the border, or to advance closer to Kharkiv city.

Russian forces have also recently intensified efforts to seize the operationally significant town of Chasiv Yar, the ISW says, seeking to exploit the pressure on stretched Ukrainian forces. 

The number of people killed in Russian strikes on a Kharkiv recreation area has risen from five to six, with an employee of the resort still unaccounted for. 

At least 27 people were injured in the two airstrikes, which came about 20 minutes apart, according to an update from the Kharkiv regional prosecutor's office on Telegram. 

The missing employee was fishing by a reservoir when the attack happened, the update said. 

Two police officers are among the injured, it added. 

The UK's defence secretary has confirmed the military aid that has been "rushed" to Ukraine. 

Grant Shapps said the "world cannot wait" as he urged nations to "step up" and support Kyiv's fight against Russia. 

Among the items sent by the UK are 80 defence missiles, one million rounds of ammunition and 20 Viking amphibious protected vehicles. 

Mr Shapps' tweet comes after he urged allies to give permission to Ukraine to use the weapons they have supplied against targets in Russian-annexed Crimea.

"We have been very, very clear with the world and helpful to Ukraine - for example, providing permissions for our weapons to be used throughout the whole of Ukraine ... that includes Crimea, which was taken by Putin in 2014," he told the BBC's Sunday with Laura Kuenssberg: 

"Now, we do not get into how we would allow targeting with our weapons to be used outside of that. But we do provide our weapons to Ukraine in order for them to defend their country."

Pressed on Volodymyr Zelensky's calls for weapons to be available for strikes inside Russia, Mr Shapps said: "I can't go into the specifics of those private conversations about how the weapons are precisely used."

Finland will propose a law that would see it turn back migrants to Russia without processing their asylum applications - despite this potentially breaching its international human rights commitments.

Finland shut its border with Russia last year to stop a growing number of arrivals from countries including Syria and Somalia.

It accused Moscow of weaponising migration against Finland and the European Union, an assertion the Kremlin denies. 

"As this phenomenon is in Russia's hands - who comes, where from and when, to Finland's border - we cannot permit it," Prime Minister Petteri Orpo told reporters.  

"Therefore we have to augment our legislation." 

The bill would allow border authorities to turn back asylum seekers who cross from Russia, with or without using force. But it would not apply to children and disabled people.

The proposal will go to parliament next week, where it will be submitted to the constitutional committee for review. It will need five-sixths of votes cast in parliament to pass - the high bar required for constitutional matters - and success is not certain. 

The General Staff of Ukraine's armed forces have published their daily operational update... 

It says "intense" fighting is ongoing along almost the entire frontline, with 78 "combat clashes" already today, compared to 110 for the entirety of yesterday. 

The Russian forces became increasingly active on the Kharkiv front, with seven clashes reported so far today.

The situation in Kharkiv is "dynamic", it says, with Russian troops trying to push back the Ukrainian units near Vovchansk, Starytsia and Lyptsi.

Russia said on Saturday its forces had captured the village of Starytsia, bringing the total number of villages it has taken in the Kharkiv region to 13.

Russia has been pushing ahead with a ground offensive in recent days that opened a new front in northeastern Ukraine's Kharkiv region and put further pressure on Kyiv's overstretched military. 

Russian forces have also increased their activity on the Siversk front and are attempting to break through Ukrainian defences in Bilohorivka, Verkhnokamianske and Rozdolivka, the update says. 

Oleksandr Usyk defeated British boxing star Tyson Fury to become the undisputed heavyweight champion of the world on Saturday night.

But Fury says the outcome was down to the Ukraine war. 

He disputed his loss after the match, saying: "I believe I won that fight. I think he won a few rounds but I won the majority of them.

"His country is at war, so people are siding with the country at war. Make no mistake, I won that fight in my opinion."

In response, Ukrainian Usyk said he was "ready for rematch," but later added: "I don't think about rematch now, I want to rest."

After today's attacks President Volodymyr Zelenskyy again called on Western allies to supply Kyiv with additional air defence systems to protect Kharkiv and other cities. 

He said there were reports "every hour" of fresh attacks. 

"Missiles, bombs, artillery are the only things that allow Russia to continue its aggression," he said on Telegram. 

"The world can stop Russian terror - and to do so, the lack of political will among leaders must be overcome."

"Two Patriots for Kharkiv will make a fundamental difference," he said, referring to Patriot missile defence systems. 

Air defence systems for other cities and sufficient support for soldiers on the front line would ensure Russia's defeat, the president added. 

This morning, Defence Secretary Grant Shapps said the delay in giving aid to Ukraine gave Russia a window of opportunity for its new offensive. 

Five people have died in strikes on two villages in the Kupiansk district in Kharkiv, local officials say. 

It brings the number of people killed in the Kharkiv region today to 10, after five people died in strikes on a recreation area in a northern suburb of the city of Kharkiv.

Local governor Oleh Syniehubov said Russian forces shelled two villages with a self-propelled multiple rocket launcher. 

At least nine people were injured in the attacks. 

We're getting photos of the aftermath of strikes on a recreation area just outside Kharkiv which killed five people and left at least 16 injured. 

The pictures show a lakeside resort, where shortly before the attacks local residents were "resting, enjoying a normal way of life", according to a local police inspector (see our 11.54 post).

Parademics and police tend to the wounded, but were also caught up in the second strike, which came about 20 minutes after the first. 

These are known as "double tap" strikes, which kill or injure emergency workers at the scene of strike impacts. 

Here are the latest photos from the scene...

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how to buy a car essay

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  1. car essay writing in English

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  2. How to buy a used car Essay Example

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  3. Purchasing a New Car Essay Example

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  4. Buying My First Car Lesson Plan for 5th

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  5. Car Buying Assignment Essay Example

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  6. How To Buy A Good Car Essay

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VIDEO

  1. Useful English for buying a Car

  2. Learn English Vocabulary: Buying a Car

  3. HOW MUCH IS IT?

  4. Vehicle Purchase Agreement and Final Paperwork

  5. Car Buying 101: Budget (Part 1)

  6. Steps for buying a car in the US as international student

COMMENTS

  1. How to Buy a Car

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  2. How to Buy a Car

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  3. How To Buy A Car Essay

    Find essays on various topics related to buying a car, such as car advertising, car comparison, car financing, and car features. Browse through hundreds of essays written by students and researchers on Bartleby.com.

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    Here's how to buy a car without getting over your head in debt or paying more than you have to. 1. Get preapproved for a loan before you set foot in a dealer's lot. "The single best advice I can ...

  7. How to Buy a New Car in 10 Steps

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  8. Buying a Car Essay Example

    A sample essay on how to negotiate the best deal for a new car at a local dealership. The essay covers the objectives, analysis, interests, and strategies of both buyer and seller, as well as the factors that affect the price and value of the car.

  9. Guide for First-Time Car Buyers

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  10. How To Buy A New Car: What You Need to Know and Do

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  11. How to Buy a Car Online

    Here's the truth of the matter: It's not very common—and in many states it's impossible—to buy a car entirely online, because most states require in-person signatures for automotive ...

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    A guide to help you pick the right new car and get the best deal possible. Learn how to get a preapproved car loan, research features, test-drive, find the right price, negotiate, trade in and seal the deal.

  13. Buying a New Car From a Dealer: 18 Dos and Don'ts

    Don't: Only Look at the Payment. Many buyers focus only on the monthly payment, but that's a bad way to buy a new car. Instead, look at the total cost, including interest payments and other fees over the life of the loan. It's simply not worth saving that $20 per month if it means making payments for another year.

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    Try another EV. Chevy just slashed the price of the Bolt (our 2017 COTY) to less than $30,000, so you can check more options boxes or pay down a credit card with money you'll save over the better ...

  15. How to Buy a Car Online in 8 Steps

    4) Check for Car Deals. 5) Search the Inventory at Multiple Dealers. 6) Chat Online With Internet Sales Managers. 7) Take a Test Drive. 8) Finish Up at the Dealership or Get the Car Delivered. Traditional Car Buying vs. Online Car Buying. 1) Set a Budget. 2) Get Preapproved for a Loan. 3) Find the Right Model.

  16. How to Buy a Car Essay

    Step 7, Schedule a test drive appointment. To get some sense of the business atmosphere that you are working with, it will be a great idea to make your initial contact with the dealership by phone. It can also boost your confidence when dealing with one of the salespeople. Then you should call the.

  17. Buying a Car Essay Examples

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  18. How to Buy a Car, Whether It's New or Used

    Pros share tips on taking the plunge. The United Auto Workers' strike at General Motors, Ford Motor and Stellantis plants will impact car production and parts. Here's what the strike means for ...

  19. 142 Car Topics & Tips for Writing a College Essay about Cars

    The future of electric and hybrid cars. The impact of self-driving cars on employment. Ferrari's influence on exotic car culture and design. Artificial intelligence in car design and engineering. 3D printing in automotive manufacturing. Future trends in car-sharing and ride-hailing services. Conserving classic cars for future generations.

  20. Buying a Car Using MoSCoW

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  22. Guide: How to buy a car in Europe and legally ship it to Russia

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  23. Buy Essay Online

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  24. Essay on Moscow

    Moscow is the capital and largest city of Russia. It is the fourth largest city in the world, and is the first in size among all European cities. Moscow was founded in 1147 by Yuri Dolgoruki, a prince of the region. The town lay on important land and water trade routes, and it grew and prospered. During the 1200's, Tartar invaders from Asia ...

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  27. Ukraine war latest: Russian oil refinery on fire after drone attack

    We have reported this morning Russia claimed a Ukrainian drone attack caused a fire at an oil refinery in Krasnodar (see our 6.44am post). Footage shared by The Wall Street Journal's chief foreign ...

  28. Ukraine war latest: Russian forces take control of village in Kharkiv

    It said the car carrying civilians came under enemy fire while driving through the border town on Thursday. The 70-year-old driver and an 83-year-old female passenger died at the scene, while two ...