Financial Matters: Buying a used car

PORTSMOUTH, Va. (WVBT) - With employment and the economy the way it is, affording a new car might not be feasible. So, what do you need to know if you're thinking about buying a used car?

Louise Baber, Consumer Lending Manager with BayPort Credit Union, shares some great tips!

1) Know what you can afford:
-- Your monthly payment may be just half of the expense of operating and maintaining a car. Some experts suggest all your monthly payments (rent or mortgage, auto, credit cards, student loans, etc.) should equal less than 40% of your gross income.
-- Set a limit and have a family member or friend shop with you.

2) Research the cars of your choice:
-- Consumer Reports annually determines the best and worst models for reliability.
-- Edmunds Web site offers test driven reports and comparisons to other models.
-- Blue Book Value/NADA
-- Ask friends and family their personal satisfaction with same manufacturer.

3) Key things to do prior to purchase:
-- First, the vehicle must have a clear title. Ask for the vehicle identification number to run a title search. CARFAX is a helpful aid.
-- Must pass your mechanics inspection, especially if you are purchasing from a private party or used-car lot.

4) Do and Don't:

Do:
-- Set a target price
-- Get the car value
-- Research the reliability of the car

Don't:
-- Shop on your own
-- Give a significant deposit with an offer (post date a check)
-- Buy without proof of a clear title

If this seems overwhelming, stop by any BayPort Branch for help or visit them on the web at bayportcu.org !