Buying a New or Used Car

Last updated: April 13, 2004

The availability and accessibility of public transportation varies from location to location in the U.S. Sooner or later you will probably need a car.

You can either buy a used car from a private party directly, or a new or used car from a car dealer. Necessary steps for both of these methods are listed here.

Used Car from a Private Party

Determine your price range and then look for the "Car For Sale" ads on campus bulletin boards or in any local newspaper.

Call the owner to make an appointment and take the car for a test drive. Carefully check the interior, exterior and mileage on the car.

If you like the car, don't make an offer yet. Return again with a mechanic to checkout the car in detail. You can ask a friend's mechanic or any area mechanic for this service for a fee. The mechanic can determine if the car needs any fixing or not.

Based on the mechanic's assessment, you make your offer. The owner may or may not agree on a lower price. When you reach on an agreement, you pay the amount and obtain the "Title of Ownership" from the seller. It is recommended to check the title of ownership carefully before you make the payment and also have the previous owner sign it over to you. Don't forget to obtain a receipt of payment.

Get the car insured in your name (see Automobile Insurance) and bring the insurance documents to the Department of Motor Vehicle (1600 7th Ave., Troy - phone: 270-2600.) The car will be registered in your name and new license plates will be issued (see Automobile Registration ). Also you will get a registration sticker, listing the month and year of expiration. This needs to be placed on your car's front wind shield.

Remove the old license plates from the car and return them to the previous owner. Put on the new plates and your car is ready to roll.

Don't forget, within ten days of the registration you have to have the car inspected by an authorized inspection agent (see Automobile Inspection) and get a sticker with the inspection expiry date on it. This sticker goes next to the registration sticker on the front wind shield.

New/Used Car from a Dealer

It is recommended that you go to a dealer only when you have done your homework regarding the kind of car you want and its current market value. To get this information you can look into the "Consumer Report" (available from the library) or just call up several dealers to get the general idea. You can also visit Kelly's Blue Book to find out the current market value of a vehicle.

Choose the car and make an offer (you may want to bring along your mechanic for second opinion.) Beware of hidden expenses and costs involved before you agree on a price.

Sometimes the dealers offer financing on cars as well. You pay some amount up front and then pay the rest of it in installments. Interest is charged on these payments and the actual price of the car becomes higher than the sale price. You do not have to get the financing from the dealer. If your bank offers a better interest rate, it would be better to get a car loan from them. The bottom line is: look for better interest rates.

Once the deal is made, make the payment, get the dealer's certificate and the receipt of payment, and have the car insured (see Automobile Insurance.)

Cars bought from an auto dealer already have inspection stickers and don't need to be inspected again before the expiry date. The auto dealer will issue you a temporary registration sticker and he/she is responsible for contacting the DMV to process your registration, so you can receive your permanent registration sticker and plates in a timely manner. (see Automobile Registration.)

Resources and Links

Edmunds.com is a great source for car buyers. It includes ratings, prices and other information for buying a used or new car. It also has a Tips & Advice section where they list steps to successfully getting a good deal for the vehicle.

If you want to get an idea of what the average price is for a used or new car, a good resource to visit is Kelly's Blue Book. Please remember that the prices listed on that website are only average prices and are not dependent on the condition of the vehicle you are planning to purchase. Always make sure that you thoroughly inspect the car before you make any offers.