2. Steps in the car buying process Steps in the Car-Buying Process For many of us, purchasing a car is the first major purchase that we will make, as well as the second-largest purchase, and the most frequent major expenditure that we will make during our lifetimes. In contrast, purchasing a house is usually our largest, or most valuable, major purchase, but most of us will buy many more cars than houses during our lifetimes. Due to their high costs and the fact that the majority, if not all of these purchases are made on credit, mistakes made during these transactions can be extremely expensive and their effects felt for many years. Using a systematic process to evaluate these purchases helps reduce the potential of costly mistakes. The car-buying process can be broken down into four major steps: research, select, buy, and maintain. Read each of the four activities and put them in their proper sequence. Be advised that the action listed is not the only action needed in that step. Other activities may be included in each step. Step Activities Change the oil, rotate the tires, and replace the windshield wipers as needed. Determine the annual insurance premium on the brands and models being considered Identify the car that meets your needs and wants in terms of size, styling, performance, and safety and obtain online quotes for three target cars. Close the deal-but only after looking at all costs, including the cost of the vehicle and all purchase-related costs, such as sales tax and fees