Used Cars

Used car price & mileage breakdown (2025)

Tips for buying used cars with cash

1. Negotiate — cash gives you power!
   • Example: If listed for $8,500, offer $7,500 in cash.
2. Always get a vehicle history report using the VIN (from Carfax or AutoCheck).
3. Avoid “salvage title” cars, even if they’re cheaper. They’ve been in major accidents or floods.
4. Private sellers often sell cheaper than dealerships, but you must handle title/registration yourself.
5. Bring a mechanic to inspect the car if you’re unsure (not always an option).

Buying a new car from a dealership: step-by-step (2025 guide)

Choose Your Car

• Visit dealership websites (like Toyota.com, Honda.com, or local dealer websites)
• Look at reviews on Edmunds.com or Kelley Blue Book
• Choose based on your needs: fuel efficiency, space, safety, etc.

You can also visit dealerships in person to test drive. You don’t have to buy the same day.

Check or Build Your Credit Score

Most dealerships require credit to approve you for a loan (also called financing). Your credit score affects:

• Whether you’re approved for a loan
• What interest rate you pay (APR)
• Whether you’ll need a co-signer

What’s a Good Credit Score?

As a refugee/newcomer, you may not have a credit score yet. In that case, you may:

• Need a co-signer (someone with U.S. credit)
• Show steady income
• Make a larger down payment

You can check your credit for free at:

• Credit Karma
• AnnualCreditReport.com
• Your banking app

Down Payment

This is the amount you pay upfront for the car. The more you pay upfront, the less your loan and monthly payment will be.

Example: If the car costs $25,000, and you put $5,000 down, you’ll finance the remaining $20,000 with a loan.

Apply for Financing

The dealership will offer to run your credit and help you apply for a loan.

You can also:

• Get pre-approved from a bank or credit union (sometimes cheaper)
• Ask if they accept alternative credit (e.g., bills, rent history, pay stubs)

You’ll need to provide:

• U.S. Driver’s License
• Proof of income (pay stub or job offer letter)
• Proof of address (lease, utility bill)
• Social Security Number (SSN) or ITIN (Individual Taxpayer ID)

Always ask for the total loan cost, not just the monthly payment!

Negotiate the Price

Even with new cars, you can negotiate:

• Dealer fees
• Trade-in value (if you’re selling an old car)
• Interest rate
• “Add-ons” (warranties, paint protection, etc.)

You don’t have to buy add-ons they try to sell you. Just say “no, thank you.”

Final Documents & Closing

Once you agree on the price and loan, you’ll sign:

• Purchase agreement
• Finance contract (if taking a loan)
• Title paperwork

Get Title, Registration & Tags

The title is the official legal document showing who owns the car.

In most cases:

• The dealer submits the paperwork to the DMV for you
• You’ll get a temporary plate to drive for 30–60 days
• Your official license plate (tag) arrives in the mail

You’ll receive:

• Title (if paid in full) or lienholder info (if financed)
• Vehicle registration card
• License plates
• Temporary registration

Start Making Monthly Payments (If Financed)

If you took a loan:

• Your first payment is usually due 30–45 days later
• Pay on time every month to build credit
• You can pay early or extra to reduce interest

Pro Tip: APR vs Interest Rate

• APR (Annual Percentage Rate) is the full cost of the loan, including fees
• Ask the dealer to tell you the APR, not just the “interest rate”

Realistic Example:

You finance a $25,000 new car with:

• $5,000 down
• 60-month (5-year) loan
• APR = 9% (for fair credit)

Your monthly payment: around $415
Total interest over 5 years: ~$5,900