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How to Buy a Car, According to Cars.com Experts

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Shopping for a car can be a lot of things — exciting, frustrating, complicated — none of them easy, and there are loads of considerations that go into the often time-consuming process. That’s where our buying guide comes in. Our experts answer the questions you have and detail the steps you should take when buying a car to ensure you get the right one for you at the right price.

Table of Contents

How Much Should I Spend on a Car?

A good rule is to spend no more than 10% to 15% of your monthly income on a car (assuming a four-year loan); you can use our affordability calculator to determine your budget. If you won’t be paying cash, it’s important to shop for financing. Start with your local bank or credit union and compare those offers with the dealership’s financing offer; check out our loan prequalification tool. Lastly, don’t forget that vehicle incentives can play a big role in the final price of a car — particularly new cars, which tend to have the biggest discounts.

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Should I Buy a New Car?

Once you’ve figured out your budget, it’s time to determine which fits best: a new or used car. Both have pros and cons; the upsides of a new car include peace-of-mind perks such as warranties, roadside assistance and covered maintenance. There’s also that new-car smell. However, downsides exist, too, including high upfront costs and depreciation during ownership. Continue reading to help make your decision.

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Should I Buy a Used Car?

If a used car checks more of your boxes, it’s important to know what you’re in for. While used cars typically come with lower upfront costs, they can sometimes be expensive in terms of maintenance costs, especially higher mileage vehicles. And where should you buy a used car? A dealership is one option; check out Cars.com’s dealership ratings before you head out. Private sellers could be another good source, and oftentimes, they offer lower prices. Check out our used-car coverage below for more information.

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Should I Get a CPO Car?

Another option is a certified pre-owned car, which is often less expensive than a new car but more expensive than a regular used car. CPO cars often offer some peace-of-mind extras, such as a short warranty and multipoint inspection. Read on to see if a CPO vehicle is right for you.

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Should I Lease a Car?

If you’ve decided on a new car instead of a used one, is leasing it a good idea? The pros include typically lower monthly payments as well as the ability to swap for a new car every couple of years. But consider the cons, including mileage limits and penalties as well as paying for a car you don’t own — unless you buy out the lease.. Check out the ins and outs of leasing below:

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Which Car Should I Buy?

You’ve decided to buy a car, but what type will meet your needs best? That depends on a lot of factors. Do you need space for a family and their gear? Do you need something that emphasizes utility and towing? Or maybe you’re interested in alternative fuels? Dive into our Car Seat Checks to see how various vehicles handle car seats. You can also dig into the ins and outs of owning a pickup truck or an electric vehicle, or see how we rank different models in a class with our multi-car comparisons. Check out more vehicle research resources below.

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How Do I Find a Car?

With millions of new- and used-car listings from dealers across the country, Cars.com’s vast vehicle inventory is a powerful tool in your vehicle search. Quickly find the vehicle you want by filtering by zip code, body style, price, features, dealer ratings and many more.

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Should I Buy From a Dealership or Private Seller?

You’ve zeroed in on the vehicle you want, but where should you buy it — a dealership or a private seller? With a dealership, the process is more transparent and could come with extras like an additional warranty, especially in the case of a used car. Check out Cars.com’s dealership and salesperson ratings to see what shoppers think of a dealership you’re considering. However, you’ll likely pay more at a dealership than you would if you made your purchase from a private seller. Pitfalls exist here, too, including online scams and unreliable sellers, to name a few.

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What Should I Do When at the Dealership?

You’re probably eager to see the car with a visit to the dealership, but there’s still one more thing to do: request, via email, out-the-door price quotes for the cars you’re considering. This gives you an accurate picture of the total cost of the car and lets you compare prices from different dealers, which can be useful when negotiating. Read on for more dealership prep and tips.

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What Should I Do About My Current Car?

It’s important not to separate the purchase of a new car from a potential trade-in or sale of your old one. Combining them makes it easier for a dealer to manipulate the numbers by, for instance, giving you a lower price on your new car but less for your trade-in. If you’re asked at the dealership whether you have a trade-in, leave yourself options regarding your plan for your current car — whether that’s trading it in or selling it to a private party or another dealership.

However, for some shoppers, the speed and convenience of the trade-in process may be enough to offset getting less money for the car than if they’d sold it themselves. Use Cars.com’s Instant Offer tool to get an exact, no-obligation cash offer on your car from a local dealer and read on for more tips.

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How to Complete the Car Purchase

You’ve agreed upon a vehicle price, so you’re done. Not so fast — there’s one more hurdle before you can drive away in your new car. If your deal will be finalized in the traditional finance and insurance office, it’s important to understand what’ll likely take place besides reviewing the taxes, fees and forms needed to complete the sale.

The F&I office is the last chance for a dealership to sell you additional products like insurance coverage, protection plans and extended warranties. There’s no requirement you buy any of these products. If you’re not interested, be prepared to politely decline — possibly more than once. Read on for more information about what to expect at the end of a car purchase.

More Car Purchase Information From Cars.com:

As the above guide illustrates, there are a lot of things to consider when car shopping, and there’s bound to be some frustration along the way. Stick to the plan, and remember that the car you buy will likely be in your driveway for years, so take the time and effort now to ensure you still love it later. Your future self will thank you.

Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.

Jennifer Geiger
News Editor Jennifer Geiger joined the automotive industry in 2003, much to the delight of her Corvette-obsessed dad. Jennifer is an expert reviewer, certified car-seat technician and mom of three. She wears a lot of hats — many of them while driving a minivan.
Email Jennifer Geiger

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