Tips To Make Buying a Used Car Easier
By Tom Catuosco
When it’s time to buy a car, buying used is the way to go for many people. Whether you’re shopping for a cheap, older, no frills car on a super tight budget, or you’re looking for a later model luxury car that’s already taken a depreciation hit, buying a used car can be a great choice. The used car market is huge, with tons of vehicles available in every price range and configuration imaginable. Buying a used car is a great way to get a great car for much less money than buying new. However, since there are so many used cars for sale, you also need to be careful when shopping. For every great deal out there, there is also a clunker somebody is trying to pass off. Here are some tips to follow when buying a used car.
Set your budget - The first step in buying a used car is figuring out what you can afford. This not only includes the initial purchase price of the car, but also includes taxes, title, registration fees, and the big one, insurance. Remember that insurance is a big ongoing expense and different cars are insured at different rates. You may find a used family car selling for the same price as a used sports car, but the sports car will cost you much more to insure.
What type of car? - Figure out what make, model, and year range you’re looking for...and be realistic about your needs. Do you have a few kids? Do a lot of shopping and haul bulky items? Is the price of gas a concern because you commute far every day? A minivan like the Honda Odyssey will serve your needs much better than a Dodge Viper. Do research on the internet to to see what kind of car will fill the roll you need it to play. You may find a few different makes/models that suit you. Once you’ve figured out what you’re looking for specifically, it’s time to shop for your used car.
Where to look for your used car? - There are 3 primary places to buy a used car - New Car Dealers who also sell used cars, independent used car lots, and private sellers. You can find good vehicles at all of them, and each has it’s pros and cons. To actually find who’s selling a car you may be interested in you can go to a dealer’s lot in person to see what they have, it’s easiest to look on the internet. Both dealer’s and private sellers usually place ads online in specialized car websites and in classified websites. Once you find a car advertised that looks promising, it’s time to check it out in person.
Inspect & Test Drive - When you get to see the used car in person for the first time, visually inspect it. Does it have any obvious accident damage, are there any fluid leaks or rust? Assuming everything looks OK visually, it’s time to test drive it. It’s best to start the car and test drive it when the engine is cold. Cars may have mechanical problems that are only obvious when starting from cold that aren’t noticeable once everything is warmed up.
Be sure to test drive the car under the same conditions you’ll regularly be driving in. If you do most of your driving on the highway, be sure to take it on the highway and get it up to the speeds you normally drive (within the speed limit, of course). If you drive on a lot of twisty, mountain roads, drive the car in a similar area. Does the engine seem to have appropriate power? Does the steering feel good, or a bit worn and sloshy? Does the suspension absorb bumps, and still allow you to maintain control, or does it feel like you’re driving in a kiddie bounce house? Are there any unusual noises from the drivetrain, excessive squeaks or rattles. Does everything function on the cars - lights, turn signals, windows, power seats, etc…
If the test drive goes well, it’s still a good idea to have the car professionally inspected by a mechanic you trust to uncover any potential issues you may not notice. Bigger car dealers who offer CPO used cars may have not allow you to have the car inspected. If they are offering an extensive warranty on a CPO vehicle, this may not be a big deal. If you are buying a used car without a warranty or from a private seller, you should definitely have the car checked out by a mechanic. You don’t want to be left holding the bag on an expensive repair after buying the car for an issue that would have been revealed in a pre-purchase inspection.
Also - Never buy a car from a seller who won’t let you test drive the car personally and says to you 15 times within an hour “Trust me, I wouldn’t lie to you.” That happened to me when I checked out a car once. Just talking to the guy made me feel like taking a shower. Needless to say, I didn’t buy the car.
Negotiate - Once you’ve found a used car that checks out well on a test drive and inspection, it’s time to make a deal. If you want to get the best price possible for the car, you need to negotiate. Generally speaking, you can get a better price from a private seller since they don’t have the day in day out experience of haggling that car dealers have.
Don’t deal with a slimeball like the “trust me” guy mentioned above. If you feel like the salesman or private seller you’re dealing with is a shady character, move on to find another seller.
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| You don't need no inspection. Trust me... |
Educate yourself on the current market price for the particular used car you’re buying factoring in mileage, conditions, and options. Make an your initial offer on the low side of a fair price. Don’t make your offer so low as to be insulting or seem like you aren’t a serious buyer. Have a price ceiling in mind that you won’t spend over. If the seller won’t budge on a price that’s over your ceiling, walk away. You may simply have to go find another car for your price, or the seller may lower their price so they don’t lose the sale.
Negotiating with a private seller may be a pretty quick process. Negotiating with a dealer, especially a large one, will usually take much longer. If buying from a large dealer, be prepared for them to try selling you other items like extended warranties to jack up the final price of the deal. If it’s stuff you don’t want or need, stick to your guns and your price.
Close the deal - After successfully negotiating, you need to close the deal and make the used car yours.
Closing a used car deal with private seller should be pretty straightforward. They generally will want payment in cash or in the form of a bank check. The parties may draw up a simple bill of sale documenting the transaction and the seller will need to give the car’s title and sign it over to you. You will then have to get the car registered in your name. This process varies from state to state.
Closing a with a dealer is a little more involved. Bigger dealers will have you go through the Finance & Insurance step. The F&I person isn’t just there to handle the final sale of the car and associated paperwork, but also to try and sell you more last minute items like rust proofing, anti-theft protection, or more warranties. If you don’t need any of that stuff, don’t let them sweet talk you. Once you get the contract, read it carefully. There will probably be some extra additional fees in it, such as sales tax and licensing fees. Make sure items the salesman agreed upon with you, such as repair work that needs to be done at the dealers cost, is documented. Also be sure that no expensive “surprises” were snuck into the contact before you sign it.
In both cases, private seller and dealer, you will need to have your car insurance company set up coverage before you can drive the car.
After following these steps, hopefully you’ll be able to enjoy your new to you used car for a long time.