Steps in the Car$-$Buying Process

For many of us$,$ purchasing a car is the first major purchase that we will make, as well as the second$-$largest purchase, and the most frequent major expenditure that we will make during our lifetimes. In contrast, purchasing a house is usually our largest, or most valuable, major purchase, but most of us will buy many more cars than houses during our lifetimes.

Due to their high costs and the fact that the majority, if not all, of these purchases are made on credit, mistakes made during these transactions can be extremely expensive and their effects felt for many years. Using a systematic process to evaluate these purchases helps reduce the potential of costly mistakes.

The car$-$buying process can be broken down into four major steps: research, select, buy, and maintain.

Read each of the four activities and put them in their proper sequence. Be advised that the action listed is not the only action needed in that step. Other activities may be included in each step.

Step

Activities

Identify cash and noncash rebates and low$-$cost financing incentives on the brands and models being considered.

$1$grad Identify the car that meets your needs and wants in terms of size, styling, performance, and safety and obtain online quotes for three target cars.

Before going to the dealership, have the dealership fax a copy of the invoice and worksheet, and once at the dealership, ensure that the contract matches the worksheet and that no additional fees have been added. Sign the paperwork.

Keep the interior of the car clean and repair the brakes as needed.