New to American Car Buying?
A complete guide for immigrants, international students, and first-time buyers.
"I know what it feels like to not understand the paperwork in front of you. I've been there."
— Seungkook Jae
7 Steps to Buying a Car in the US
Know What You Want
First, decide: are you paying the full price out-the-door (cash/check), or financing with monthly payments? Many buyers — especially in the Korean community — prefer to pay in full. That's great! If financing, your credit score (300–850) determines your interest rate. No credit history? Get a secured credit card and pay it off monthly — you'll build a score within 6 months.
Set Your Real Budget
If financing: every $1,000 financed ≈ $20/month. A $25,000 car ≈ $500/mo. Put money down and the payment drops — $5,000 down on a $25K car means you finance $20K ≈ $400/mo. Don't forget insurance ($100–$300/mo), gas ($150–$250/mo), and NC sales tax (3%). If paying cash: your out-the-door price is the vehicle price + tax + fees. Budget for the TOTAL cost either way.
Choose New vs Used vs CPO
New: full warranty, latest features, higher price. Used: lower price, but check vehicle history (Carfax). CPO (Certified Pre-Owned): used car with manufacturer warranty — best of both worlds. Fun fact: Kia offers a 10-year/100,000-mile powertrain warranty on new cars.
Test Drive
Test driving is 100% free and no obligation. Drive it on the highway AND in a parking lot. Bring your family — make sure car seats fit, everyone is comfortable. Take your time. A good salesperson will never rush you.
Negotiate
Many dealers mark up prices and expect negotiation. At Fred Anderson, we show our best price online upfront — no games. That said, it never hurts to ask. For used cars, prices are mostly set, but there may be some wiggle room depending on the vehicle. Just ask — the worst they can say is no.
Paperwork & Drive Home
The F&I (Finance & Insurance) office will offer extras: extended warranties, paint protection, gap insurance, etc. Gap insurance is worth it if you’re financing with little down payment. Paint protection and fabric coating? Usually not worth it. Read everything before signing.
Common Traps to Avoid
What is it?
You drive the car home, then the dealer calls saying your financing “fell through” and you need to sign a new deal with a higher interest rate.
How to protect yourself
Don’t drive the car home until financing is 100% confirmed in writing. If they call you back, you have the legal right to return the car and get your money back.
What is it?
The online price looks amazing, but when you arrive the price is suddenly higher because of “market adjustments” or “mandatory packages.”
How to protect yourself
Screenshot the online price before you go. Ask the dealer to confirm the price over text or email. If the price changes when you arrive, walk away.
What is it?
Paint protection, fabric coating, VIN etching, nitrogen tire fill — these are high-margin products that usually aren’t worth the cost.
How to protect yourself
You can say no to every add-on. Ask for the price WITHOUT any additions. If you want gap insurance, shop around — your own insurance company may offer it cheaper.
What is it?
A pressure tactic designed to make you wait and feel committed. The salesperson “fights for you” to get a better deal, but the price was already planned.
How to protect yourself
Don’t feel pressured by the performance. Know your budget, know the fair market price (use KBB or Edmunds), and stick to your number. It’s OK to leave.
What to Bring to the Dealer
- Valid driver’s license or passport
- Proof of income (2 recent pay stubs)
- Proof of residence (utility bill or lease agreement)
- Insurance info (or be ready to get a quote)
- Trade-in title (if applicable)
- Down payment (personal check or bank transfer is fine)
- Passport with valid visa
- I-94 arrival/departure record
- SSN or ITIN (Individual Taxpayer ID Number)
- Employment letter from your company
- Proof of US address