The thought of buying a brand new car can be exciting, but are you sure it's worth the investment? Sure, it's shiny and the salesman makes a good pitch; however, many first-time buyers don't realize how much money goes right down the drain when they purchase a new car. The truth is, a used car is going to lose a significant percentage of its value the minute you drive it off the lot. When you consider that you could get a nearly-new car at a fraction of the price, it's easy to see that used is the way to go.

Why it is Wise to Purchase Used

Most people purchase used cars just for because they are more affordable. When a new car is purchased, you will be in for payments over several years at least, with a lot of interest. On the other hand. A car that is used may be purchased for about half the price of this year's latest model. The new car within the first twelve months will depreciate by twenty percent at least, so choose wisely.

The biggest fear in buying a used car is that it has hidden or unknown problems. Most dealerships are now responding to this by offering Certified Used Vehicles. When you buy a used car from a good dealership, you can trust that it has been through comprehensive physical and mechanical inspections. When you buy a certified used car that is only a few years old, you can usually expect it to be nearly on par with a brand new car.

How to be a Smart Buyer

Buying directly from a dealership has become far less challenging as dealerships have responded to a higher demand in consumer standards. Of course, you should perform due diligence in any large purchase - and a car is likely to be one of your biggest purchases. No matter how good a car looks, or how good the salesman makes it sound, it's still smart to arm yourself with plenty of information before handing over the check. Here's how:

1. Know what you want

You need to make sure you do not make any mistakes, when you buy a large purchase such as a car, you need to be prepared. Know how much you want to spend first. This does not mean you have to decide on the exact make, model and year of the vehicle. However, it is helpful to know what condition and style you want the car will be will help to eliminate certain vehicles more easily.

Even when you have a certain vehicle in mind, you are still wise to expand your choices with similar cars. Many brands of cars are for sale today, but some of these brands come with huge price tags. It is easier to find a vehicle at a way lower price, when you have broad parameters when looking. As an example, Toyota offers the Matrix, but you may be delighted with the Pontiac Vibe. This Pontiac is made in conjunction with Toyota using some of the same parts that Toyota puts in the Matrix.

2. Do Your Research

Don't base your whole decision on looks or reputation. Some cars look and seem wonderful when they're new on the lot, but a little research might reveal some glaring flaws that show up a few years down the line. Take time to read consumer reviews on any car that you're interested in purchasing. No car is perfect, but some simple research can prevent you from ending up with a lemon.

Additionally, make sure that you know the approximate value of the vehicle you're interested in. By checking out your car on Edmunds.com or KBB.com, you can get a good idea of an appropriate price range for your desired vehicle. If a car is listed considerably higher or lower than its market value, don't be afraid to walk away.

3. Be Cautious with Private Sales

It is true that you can discover some affordable used vehicles through individuals, but you need to use caution before purchasing one this way. These individuals do not have to follow any particular rules, so often times, vehicles purchased from individuals seldom are in as good of shape as those from dealerships. This does not mean you cannot buy from individuals. You only need to check out the car more closely for flaws or issues.

4. Thoroughly Check

There's no such thing as "too careful" when you're buying a car - whether it's used or new. Take as much time as you want to check out the car. Take it for a test drive and put it through its paces. See how it performs at low and high speeds, on sharp turns and quick stops. Make sure that it doesn't pull to one side or the other, and that there are no strange clicks, rattles or whines while it's running. Remember that there are plenty of cars out there, so don't settle for one that seems questionable.

If a car checks out after your initial test drive and inspection, ask if the dealership can provide a VIN history check through CarfFax or a similar service. Make sure that you get the vehicle's complete history. If the dealership (or individual) is unable to provide it, it's worth the small investment to purchase the VIN check online for yourself. This will alert you to any possible red flags, accidents or potential problems.

Before agreeing to the purchase, make sure to have the car inspected by a mechanic that you trust. Point out any problems you may have noticed, and ask questions about anything that seems problematic. Your mechanic should be able to either lay those fears to rest or alert you to potential problems. Again, this is a small investment compared to the price you're paying to purchase a car, so don't skip this step.

5. Be Ready to Negotiate

Some dealerships will have a price you cannot negotiate, but typically, the dealerships are open to a little haggling about the price of the car. Don't hesitate to use your negotiation skills.