Buying and Running a Car

What it is

Getting a license, buying a used car safely, insurance, and basic upkeep like oil and tires.

Why it helps you

A car can mean a job, freedom, and reach — especially far from a city. Knowing the basics keeps you safe and saves money.

Good to have first

A Budget.

This opens up

More jobs, more places, more freedom.

Where to get help

Learn to drive and get a license

Each state runs its own driver’s license office. It may be called the DMV, BMV, MVD, or something else. The rules for adults are often simpler than for teens. In many states, an adult can pass a written test, get a learner’s permit, practice with a licensed driver in the passenger seat, and then take the road test. Some states add steps. For example, Texas requires people aged 18 to 24 to take a 6-hour adult driver education course first.

Find your state’s motor vehicle office This official USAGov page links to every state’s driver’s license office.

Cost: Free to look. A permit, test, and license all cost money. Fees vary by state.
Who can use it: Anyone
How to start: Pick your state. On your state’s site, look for “learner’s permit” or “new driver,” and the free driver’s manual. The written test comes from that manual.
Good to know: You will need ID and proof of where you live. See Proof That You Exist if you don’t have ID yet. Many manuals come in other languages or as audio.

If no one can teach you to drive. You can pay a licensed driving school for lessons. Ask if they have an adult course, and if they can lend a car for the road test. Some community colleges and adult schools offer lessons too. Ask your state’s driver’s license office for a list of approved schools. You can also ask a trusted friend or coworker with a license to practice with you in an empty parking lot.

Buying a used car

FTC: Buying a used car from a dealer The Federal Trade Commission explains how to shop for a used car, read the “Buyers Guide” sticker, and avoid extra charges.

Cost: Free
Who can use it: Anyone
How to start: Read the page before you shop. On the lot, find the Buyers Guide sticker on the car window. It says if the car comes with a warranty or is sold “as is.”
Good to know: “As is” means if the car breaks after you buy it, you pay for the repair. Pay an independent mechanic you choose to check the car before you buy.

Check a car’s title history The National Motor Vehicle Title Information System is a U.S. Department of Justice program. It lists approved companies that sell short reports showing a car’s title history, last mileage reading, and labels like “salvage” or “flood.”

Cost: Each approved company sets its own price. Compare a few.
Who can use it: Anyone
How to start: Get the car’s 17-character VIN (vehicle ID number) from the seller. Pick a company from the site’s “Research Vehicle History” page.
Good to know: These reports don’t show mechanical problems. You still want a mechanic to look at the car.

NHTSA: Check for recalls The National Highway Traffic Safety Administration lists safety problems that car makers must fix.

Cost: Free. Recall repairs are usually free at a dealer for that brand.
Who can use it: Anyone
How to start: Type in the car’s VIN.
Good to know: Check before you buy, and again a few times a year.

Paying for a car

CFPB: Auto loans The Consumer Financial Protection Bureau is a government office that protects people who borrow money. Its guides explain how car loans work and how to compare offers.

Cost: Free
Who can use it: Anyone
How to start: Before you shop, ask a credit union or bank what loan you can get. Then compare it with the dealer’s offer.
Good to know: Look at the total cost, not only the monthly payment. A long loan makes each payment smaller, but you pay much more in interest. See Credit and Debt.

Car insurance

Almost every state requires insurance before you drive. The cheapest legal kind is usually called “state minimum liability.” It pays for damage you cause to other people, not to your own car. Call a few insurance companies or local agents and compare prices.

California Low Cost Auto Insurance (California only) A state program that sells basic, legal car insurance at low prices to drivers with low incomes.

Cost: Low cost. The price depends on your county.
Who can use it: California drivers who meet the income limits. There are also limits on the car’s value and your driving record.
How to start: Call 1-866-602-8861 or visit mylowcostauto.com to see if you qualify.
Good to know: If you live in another state, ask your state’s insurance department if it has a low-cost program.

Taking care of your car

Car Care Council: Car Care Guide A free 80-page beginner’s guide to how a car works: warning lights, fluids, tires, and when to get service.

Cost: Free
Who can use it: Anyone
How to start: Read it online or order a copy from the website.
Good to know: It teaches the basics. It doesn’t replace a mechanic, so get a second opinion before a big repair. Your car’s owner’s manual says how often it needs an oil change.

If you only do one thing first

Look up your state’s driver’s manual and read the first chapter. It is free, and it tells you exactly what you need to get a learner’s permit. Even if you can’t buy a car yet, a license opens doors, and it also works as photo ID.

Watch out for

“Free car” offers. There is no government program that gives away free cars. Ads that say so are usually scams to get your personal information or a fee. A few real charities give or sell low-cost cars, but they have long waits. Call 211 and ask about car or transportation help near you.
“Yo-yo” financing. A dealer lets you take the car home, then calls days later to say the loan “fell through” and you must sign a worse deal. Make sure your loan is final before you drive off (CFPB).
“Buy here, pay here” lots. These lots lend you the money themselves. They often charge high interest and may repossess the car fast if you pay late. Try a credit union first.
Car title loans. These loans use your car as a promise to pay. They cost a lot, and if you miss a payment you can lose your car (FTC).
Fake vehicle history sites. Some scammers ask you to buy a report from a site they choose. Use a provider listed on the official NMVTIS site instead.