If you can’t stomach taking the hit of the initial depreciation of buying a new car and you have some flexibility on color and equipment, purchasing a used car can be a great option. Not only can it save you money on the upfront costs, but it can also lower your insurance costs, registration fees, and taxes. However, buying a used car does come with its own set of risks that you need to understand in order to protect yourself from making a costly mistake.
1. Determine Your Budget and Needs
Take the time to make a good choice. Don’t just go to a dealership and make an emotional decision based on what is in-stock. When diving into the used car market, it’s important to determine your budget and needs. Consider your budget, whether you need financing and how much you can afford to put down. Additional factors in the cost of ownership, including insurance, maintenance, and repairs. By understanding your budget and needs, you can narrow down your options and make a more informed decision.
2. Do Your Research
Research is key when it comes to finding the right used car. Look for cars that meet your needs and wants, while also having a good reputation for reliability. Websites like Kelly Blue Book, Edmunds, and NADA can provide valuable information on pricing and reliability ratings. Develop a shortlist of three or four models that meet your criteria and have a proven track record of reliability.
3. Start Looking
Once you have your shortlist, it’s time to start looking for available vehicles. Established dealerships, both new and used, will usually have their inventory listed on their websites. You can also explore independent dealers such as CarMax and online retailers like Carvana. Additionally, private owners often list their cars on platforms such as Facebook Marketplace, Craigslist, or eBay Motors. Take note of the price, mileage, equipment, and location of each vehicle.
4. Contact Sellers and Gather Information
Contact the sellers to confirm availability and ask any questions you may have about the car. Request a CarFax report, any mechanical inspection reports, and the vehicle’s maintenance history if it is available. It’s important to gather as much information as possible to make an informed decision. Once you have all the necessary details, narrow down your options from one to three vehicles.
5. Inspect and Test Drive
Schedule a time with the seller to see the car in person. During the test drive, pay attention to how the car performs at different speeds, over bumps, and when braking. Listen for any unusual noises or vibrations. Review the CarFax report for any red flags, such as accidents, odometer irregularities, gaps in maintenance, buyback or totaled alerts or title issues. If available, check the mechanical inspection report for any past repairs. Consider having an independent shop perform a pre-purchase inspection to ensure there are no hidden issues.
6. Negotiate and Finalize the Purchase
If everything checks out and meets your expectations, it’s time to negotiate the price and finalize the purchase. Discuss financing options and any warranties that may be available. If the pre-purchase inspection revealed any necessary repairs, negotiate the price accordingly. Be prepared to walk away if you cannot come to an agreement. Once a decision is made, ensure that the title is clear and accurately completed before finalizing the transaction.
Congratulations on your purchase! By following these steps and taking the time to research and inspect the used car, you can make a confident decision and find a reliable vehicle that fits your budget and needs.