Buying a car is one of those purchases that can be both practical and emotional. For most people, a vehicle is a necessity, but it can also be something we genuinely enjoy. That combination can make it easy to get caught up in the excitement of finding the “right” car and lose sight of the bigger financial picture.

I recently bought a used car and am in the process of selling my previous car. Going through both processes has provided some insight into the best practices that make buying and selling a car more successful and less stressful.

Separate Your Needs from Your Wants

One of the best things you can do before buying a car is figure out what you actually want.

The important thing is to separate your needs from your wants before you start shopping and establish a realistic total purchase price. Otherwise, it is easy to find yourself changing your criteria every time you see an appealing vehicle.

For example, you may need a third row, excellent fuel economy, the newest safety and technology features, and something that will be inexpensive to maintain. But you may want all-wheel drive, leather interior, and a fancy sound system. Separate and prioritize.

Research Before You Buy

The internet has made researching a car easier than ever. Before buying, look at multiple examples of the same vehicle/year and research:

• What did similar cars sell for from both dealerships and private sellers
• What are common maintenance issues
• What is the long-term cost-to-own the vehicle
  • Edmunds has a helpful calculator to determine the true cost of owning a particular vehicle

There are plenty of ways to do this research, and the best approach will depend on what you’re comfortable using. Resources such as Consumer Reports, J.D. Power, Edmunds, and Kelley Blue Book can help you compare vehicles, understand expected ownership costs, and evaluate reliability and safety.

If you’re considering a more expensive vehicle, it can also be helpful to talk with people you trust who own the model you’re considering or work with someone who has expertise in the automotive industry. The goal isn’t to rely on one source, but to gather enough information from several sources to feel confident in your decision.

Technology can be another useful resource. AI can be a great sidekick for your research, but don’t let it drive the decision. While tools like ChatGPT are great for organizing your thoughts, comparing listings side-by-side, or flagging questions you might miss, they have limits. AI is great for filtering data and pointing you in the right direction, but it often misses the nuance of your individual situation and can’t give truly personalized advice. Use it to jumpstart your search but rely on real human expertise and solid data when it’s time to choose.

Whether you use AI, Consumer Reports, or advice from friends and family, using a combination of resources is important to do your homework before you buy.

Don’t Skip the Pre-Purchase Inspection

If you are buying a used vehicle, a pre-purchase inspection can be some of the best money you spend during the process. The cost is generally around $150-$200.

Whenever possible, have an independent mechanic inspect the vehicle before you buy it. Even if a car looks great and drives well, there may be mechanical issues that aren’t obvious during a test drive.

If the mechanic finds something wrong, it doesn’t necessarily mean you should walk away, because every used car will have some wear and tear. Instead, the inspection gives you information to decide:

• Is the car worth buying
• Should I negotiate the price
• Or walk away

And remember, you can always walk away.

It’s easy to become emotionally attached after spending hours researching a car or traveling to see it. But there will always be another vehicle for sale. If the numbers don’t work or something doesn’t feel right, don’t let the time you’ve already invested convince you to make a decision you’ll regret.

Selling Requires Some Research, Too

I am currently experiencing the other side of the process as I try to sell my previous car privately.

Just as you should research a car before buying it, you should research your own car before selling. Look at comparable vehicles, consider mileage and condition, and understand that an asking price isn’t necessarily the price you’ll ultimately receive.

Presentation matters, too. Clean the car, take good pictures, provide an honest description, and have maintenance records available if you have them.

Selling privately can take more time and effort than trading a car in, but you may receive more money in exchange for doing some of that work yourself. Sometimes it is not worth the extra hassle of private sales, especially if you are buying from a dealership.

Know When to Get Help

Not everyone enjoys negotiating a deal or spending hours researching vehicles. That’s okay.

There are services such as Your Car Haggler that help you search for vehicles, negotiate with sellers, and navigate the purchasing process. For some people, paying for that expertise and convenience may be worthwhile.

The same principle applies to many areas of financial life: you don’t have to do everything yourself. Sometimes paying for expertise can save you time, stress, and potentially money. Just make sure you understand what you’re paying for and what you’re receiving in return.

Make the Car Fit Your Financial Plan

Being financially responsible doesn’t mean you have to buy the cheapest car available. A car can be something you enjoy while still being a reasonable financial decision.

Before buying, ask yourself:

• Can I comfortably afford this?
• Have I researched it?
• Do I understand the ongoing costs?
• Does the vehicle meet my needs or am I caught up in the excitement of the purchase?

Whether you’re buying a $10,000 used car or an $80,000 new one, taking the time to answer those questions can help you make a better decision.

A little research, patience, and preparation can go a long way toward making sure the car you buy (or sell) is a good decision for both your lifestyle and your financial future.ay toward making sure the car you buy (or sell) is a good decision for both your lifestyle and your financial future.

Jake Spradlin, CFP®

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