Questions to Ask When Buying a Car

Buying a car is a big investment, so don’t rush the decision. Make sure you’re well informed by asking key questions about price, budget, monthly payments, car type and more.

Let’s look at some things to ask about when buying a new car and others for used-car purchases.

Questions to ask before heading to the dealership

Knowing the right questions to ask before you set foot in a car dealership can help you make an informed decision. Here are some topics to ask yourself (and maybe your bank) before visiting the dealer:

• Budget: When making any large purchase, it’s wise to establish a clear budget. You can use LendingTree’s car affordability calculator to narrow down your options and avoid overspending. Don’t forget to also take into account ongoing costs like interest, insurance, maintenance and gas.
• Car type: Choosing which vehicle to buy is about more than just price. For example, things like size, type, fuel economy and safety features, as well as your needs and lifestyle, will likely influence what vehicle is best for you.
• Buying vs. leasing: Buying and leasing each have pros and cons, so it’s important to consider which suits your preference, finances and driving habits the best. Buying a car means you eventually own it (with potential long-term savings), but it also requires a larger upfront investment and ongoing maintenance. Leasing a vehicle means more flexibility, with newer models and lower monthly payments, but it comes with mileage limits and no ownership at the end.
• Financing: If you plan to finance, compare rates and terms for preapproved car loans from banks, credit unions or online lenders. That way, you can walk into the dealership with more negotiating power and are more likely to get the best terms.
• Trade-in: If you’re trading in your current vehicle, research its value using resources like Kelley Blue Book or Edmunds. Knowing this can help you negotiate a fair trade-in value and reduce the cost of your new purchase.

Questions to ask when buying a car

After you’ve reviewed the questions above and you feel ready to buy the car, here are some things to ask the dealer as you negotiate:

 What is the out-the-door price?

When you buy a car from a dealership, you’re never just paying for the car. The out-the-door (OTD) price includes all costs: purchase price, taxes, registration fees and any additional dealer fees. Understanding this total cost up front prevents surprises later.

 What warranty deals are available?

Vehicle repairs can be costly, and warranties offer protection against unexpected repairs. Ask about the manufacturer’s warranty and any extended warranty options to give yourself some peace of mind.

 Can I take it for a test drive?

If you buy a car, it’s best to test drive it first. While behind the wheel, you can evaluate the car’s performance and handling, as well as how comfortable it is. This way, you can make sure the vehicle meets your expectations.

 Can you beat my preapproved auto loan rate?

If you get preapproved for an auto loan, you can use this as leverage in negotiations with the dealership. Some dealers may offer competitive financing terms or even beat your preapproved rate to secure your business. You may not know a better deal is possible if you don’t ask.

Questions to ask when buying a used car

Not everyone is interested in purchasing a new car. If you’re considering purchasing a used vehicle, asking these questions will help you avoid buying a lemon:

 What’s the ownership and maintenance history?

Understanding how many owners the car has had and its maintenance record gives you insight into its overall condition. A poorly maintained vehicle may not only cost you more in repairs but also be less reliable and safe on the road. Taking these factors into account helps make sure you get a good vehicle.

 Has it been in an accident?

Accident history affects both the value and potential future repairs of the vehicle. Requesting this information is important: You’ll specifically want to look for damage to the vehicle’s engine or frame, since this could lead to major issues down the road.

 Do you have a vehicle history report I can see?

You can ask the dealership for details about the vehicle’s history, but it might be better to see the report with your own two eyes. Reviewing a vehicle history report reveals important details like reported accidents, ownership history and title status, helping you assess the car’s condition.

If the dealership doesn’t provide a copy, you can obtain one from the National Motor Vehicle Title Information System (NMVTIS) or from websites like Carfax or Kelley Blue Book.

 What are the vehicle’s mileage and age?

The car’s mileage and age are two important factors to consider when buying a used car. Mileage and age influence car depreciation and potential future maintenance needs. Knowing the mileage and age helps gauge the value of the vehicle and how much you may need to spend to maintain and repair it.

 Can I take the car for an independent inspection?

While dealerships may say the vehicle is in excellent condition, it doesn’t hurt to do your own inspection. Have a trusted mechanic independently inspect the vehicle to get an unbiased assessment, identify any potential issues and give you some peace of mind.

 Does the vehicle have a clear title?

The vehicle’s current owner will have to transfer the car title to you when you buy it. If you verify the title beforehand, you can make sure there are no outstanding loans or legal issues.

And if you find out the vehicle has no title, beware of making the purchase, since there may be problems registering the car or getting a loan for it.

Questions to ask when buying a new car

When buying a brand-new vehicle, these questions might make the process easier and help you get the best deal:

 Do you have the car I want in stock?

If you have a certain vehicle in mind, making sure the dealer has it in stock can be one of the most important questions to ask when buying a new car. Confirm availability to ensure you don’t waste time negotiating for a car that isn’t immediately available for purchase.

 What additional fees will I be charged?

Beyond the sticker price, there may be dealership fees for documentation, tax, licensing and more. Understanding these fees — which often range from 8% to 10% of the vehicle’s price — helps you calculate the total cost of ownership.

 Can I see the buyer’s order?

You want to see the terms of the agreement clearly laid out in front of you. A buyer’s order details the terms of the deal, including final price, fees and other details. Reviewing this document before signing ensures everything discussed is set out in writing.

 What rebates or incentives are available?

Negotiating the sales price and loan terms aren’t the only ways to save on your purchase. Manufacturers might offer incentives, including cash rebates or special financing rates, such as 0% APR (annual percentage rate), for the purchase of a new vehicle.

Find out about current offers with the dealership or check out the manufacturer’s website to see if you can lower the purchase price or financing costs.

 What financing terms are available?

You’re more likely to get the best deal if you compare financing options from multiple sources, including dealership financing, banks, credit unions and online lenders. Try to find the type of loan you want, and have a look at online auto loan marketplaces to get an idea of what’s available.

Since different lenders weigh factors differently, you’ll likely see a wide range of loan offers. Look at interest rates, loan terms and any additional associated fees.

Also, consider using an auto loan calculator to check what the monthly payment will be like.

 Can I test drive a used version of this car?

Test driving a used version of the same model allows you to get an idea of its performance, including firsthand experience with the vehicle’s handling and a closer look at its features. Getting behind the wheel can help you make sure your new car will meet your expectations.