What to Bring When Buying a Used Car

It’s no secret that the auto industry is massive, providing customers with endless options when choosing the perfect vehicle for their lifestyles. If you’re considering buying a car but don’t want to spend a lot, consider purchasing a used vehicle instead. The market is full of pre-owned vehicles in many conditions, including features, trims, and customizations.

Our team here at Ike Honda in Marion, IL, broke down the benefits of buying pre-owned and what to bring when purchasing a used car. With this information, you can feel confident arriving at a dealership knowing you have everything you need to complete the sale. With these five items in tow, you’ll be driving off in the new-to-you car of your dreams in no time.

Used Cars by Dennis Sylvester Hurd is licensed by CC0 1.0 Universal

Here are the top five items to make sure you bring with you when buying a used car:

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Driver’s License

Perhaps the most important item to bring when buying a used car is your driver’s license. The seller needs proof that you’re a legal driver before they can sell you a car. Make sure your license is within its expiration date to avoid delays. Your license can also be proof of residence and identity if the dealer wants to complete a credit check.

Proof of Insurance

In the state of Illinois, it’s a legal requirement for all drivers to have valid auto insurance. Make sure to bring proof of your car insurance policy, whether a printout or an insurance card, for your current vehicle. If you’re buying your first vehicle, contact an auto insurer for more information on how to set up a new policy.

Preferred Payment Method

Before you purchase your pre-owned vehicle, it can be helpful to decide on a preferred payment method to speed up the process. Most sellers accept payment through checks, cards, and cash, but it’s always important to double-check beforehand that your preferred method is acceptable. If you were pre-approved for a loan, let the dealer know, and they should find your information in their system.

Pay Stub and Credit Report

If you’re planning on applying for a loan the day of, it’s helpful to bring all the required documents. This includes a recent pay stub that shows proof of your current employment, along with a credit report detailing your credit history. You might also bring a certificate of employment if you have yet to receive your first pay stub. This informs the dealership of your financial past and helps them decide how much they want to lend you and with what interest rate.

Generally speaking, the higher your credit score is, the better your loan conditions can be, although this can vary on a case-by-case basis.

Trade Title (If Trading)

If you’re looking to trade in your current vehicle, make sure you bring the title of that car when purchasing your new pre-owned one. Trading in your car is a great way to save money on your purchase, so go through the necessary steps to value your trade-in with the dealership beforehand, if possible. The dealer will need the title to transfer ownership of the vehicle from you to them, so you must bring this with you.

Benefits of Buying a Used Car

There are many reasons people choose to purchase used cars over new ones, including:

Affordability

The primary benefit of buying a used car over a new one is how much you can save on the purchase price. New cars are more expensive than used ones, with their value decreasing immediately after purchase. Instead, you can opt for a gently used version of the car you want, often at a higher trim level and with more advanced features, for less money.

Lower Depreciation Rate

When you buy a used car, you don’t have to worry about depreciation, as most of the vehicle’s value has already decreased by the time you get it. For example, if you pay $40,000 for a new car, its value may depreciate by up to 20% in the first year alone. If you instead purchased a four-year-old version of the same model for $20,000, you’re getting more value out of the vehicle in relation to the amount you would’ve spent buying it new.

Lower Insurance Costs

Insurance costs are another benefit of buying used, as they’re much lower for pre-owned vehicles than new ones. This is because it costs more for insurance companies to cover damages on a brand-new car with expensive parts than, say, a ten-year-old car with cheaper repairs. If you try finding a used car with high safety ratings, you may score even lower insurance costs, as companies consider safety and security when creating rates.

Larger Vehicle Selection

When people buy new cars, they often go to a dealership and analyze their options before deciding on their favorite. This is the same process for buying a used car, although instead of your options being limited to one car brand, you can choose from a vast inventory. Most dealerships have trade-in programs that allow buyers to receive discounts for trading in their current vehicles when buying a new one. This benefits both the driver, who can save money on their new purchase, and the dealer, as they can grow their used vehicle inventory to include various makes and models.

Buy a Used Car Today at Ike Honda in Marion

With this guide, you can gather all the documents and materials you need to purchase a used car before heading into the dealership. If you’re interested in buying a pre-owned vehicle, consider checking out our massive inventory of used cars here at Ike Honda. Check out our rotating specials throughout the year and save on certified pre-owned and used vehicles. Contact us today, and a staff member would be more than happy to assist you with all your car-buying needs.