How To Buy a Used Vehicle in 6 Steps

Buying a used car allows you to stretch your budget and minimize the hit of depreciation. There's an array of options for purchasing used cars, including certified pre-owned vehicles that come with some manufacturer protections, used cars from a dealership and private sales from previous owners. Here's how to buy a used car in six steps, from knowing where to look and what questions to ask to securing financing. These tips for buying a used car can help you find the right new-to-you vehicle that will last for years to come.

If you're eager to buy a new car, you might want to get behind the wheel ASAP. But before you go test-driving, spend some time considering your budget.

First, decide whether you'll pay cash for the car (maybe you've been saving in a high interest account or money market account). If you don't have cash on hand, you'll need to finance with a car loan.

Most people take out a loan from the bank to help pay for their car. If that's what you'll do, consider how much (if any) down payment you'll need, and the amount of monthly payments you can afford. A payment calculator can help you see how much a sales price will cost you per month.

Don't forget hidden costs and the ongoing costs of maintenance, insurance and gas. Registration, taxes and fees generally add about 10% to the purchase price of the vehicle, and more expensive vehicles are generally more expensive to insure and service.

READ MORE: How to Save for a Car

Next, consider what you need and want from your car. If you have kids, you might need a car that seats seven or can fit three car seats across the back seat. If you're a contractor, you might need a truck or van that can fit your tools. If you live in a cold climate, four-wheel drive might be essential. These are features you need.

After that, think about features that would be nice to have. Heated seats and remote start are a nice touch for cold mornings. The latest tech bells and whistles and driver-assistance features might be important to you.

Try to rank your wants and needs in order of importance. Know what's essential, and what you might be willing to compromise on.

Now that you have a budget and a list of wants and needs, it's time to research vehicles. Think about what popular makes and models might fit your needs, and ask people who drive similar vehicles what they like and don't like about them.

In addition to seating and features, consider how specific makes and models compare when it comes to:

• Fuel economy
• Safety ratings
• Reliability
• Costs to insure and service

Once you've narrowed down specific makes and models that interest you, test-drive them. Get a feel for how comfortable they are and whether they'll work for you and your family.

When you've decided on a few makes and models, it's time to find a specific car that fits your budget and needs. Once you have a car in mind, you' ll need to inspect that specific vehicle. That process will vary depending on whether you're buying a certified pre-owned car, a used car from a dealers hip or a used car privately, but here's an overview:

• Get the CarFax or Kelley Blue Book report. This will tell you about the car's service history and vehicle crash history. It's pulled using the vehicle identification number (VIN).
• Ask about the certification process, if applicable. If you're buying a certified pre-owned vehicle, ask what the certification covers. Clarify if there's any warranty included with the purchase.
• Have a pre-purchase inspection. For private sales, ask the seller to allow a pre-purchase inspection. Call an independent mechanic (preferably someone who hasn't serviced the car before) and ask them to look for any major mechanical issues. These inspections generally cost $100 to $150 but can save you lots of money in the long run.

LEARN MORE: Simple Questions To Ask Your Mechanic

Next, it's time to negotiate a price. This is a part of the car-buying process that many people dread, but it doesn't have to be overwhelming. In fact, if you want to skip it altogether you can find car retailers that promote themselves as no-haggle. At these dealerships, the price is the price—no haggling required.

Before you start negotiating, familiarize yourself with the market value of the car. This is based on the make and model, mileage and condition. You can realistically expect to negotiate about 5% or so below the market value of the car, whether you're buying from a dealership or private sale. Remember, there are lots of used cars for sale. Don't be afraid to walk away from a deal if it's not going to work for you.

Once you've agreed on a price, you can finalize the sale. If you're financing the car, reach out to your lender with information about the make, model and vehicle identification number. Call your insurer and provide the information needed to add the vehicle to your policy.

Sign your sales contract and loan agreements, plus a bill of sale if you're doing a private transaction. If you've paid cash, be sure that you have the title for the vehicle, and that the previous owner has signed it over to you. Then, you'll follow the steps in your state to register and inspect the vehicle so that it's legal to drive.

Here's a checklist of documents you'll want to have in order:

• Sales contract and/or bill of sale
• Insurance binder showing that the vehicle has been added to your insurance
• Loan documents, if financing
• Title, if paying cash
• Registration
• Inspection.

Buying a new-to-you car takes some planning, from savings to applying for a loan. Once you have a new vehicle, the Synchrony Car Care credit card can help you pay for car repairs promptly, keeping you on the road and where you need to be. Learn more and apply now.