Steps to Buying a Used Car

Shopping for a used car is not so much different from buying a new vehicle. Whether you’re shopping for a new or used car, you generally go through a series of steps that include choosing the car that suits your needs and lifestyle, arranging financing, negotiating with the dealer or seller, and accomplishing the necessary paperwork. But unlike a car that’s bought new, a used car comes with a maintenance history that could affect its reliability and serviceability in the hands of its new owner. Therefore, shopping for a used car involves taking additional steps to avoid buying a lemon. By doing your homework and exercising a healthy amount of vigilance, you can get a reliable, trouble-free used car that addresses your transportation needs and fits your budget. The following guide can help ease the used car buying process for you.

1. Choose the car that’s right for you. Choosing the right car involves taking a close look at your lifestyle, budget, driving habits, daily routine, and personal taste. Will you be using the car for the daily commute to the office or do you expect to do some weekend driving into the country, as well? Are you a young, up-and-coming executive who wants a flashy sports car to reflect your fast-rising status, or are you a soccer mom who is an active member of the neighborhood car pool? How much can you spare for occasional repairs on the used car? Answering these questions will help lead you to the car that’s suited to your needs and situation. Check out “Choosing the Car That’s Right for You” for more tips on car selection. 

2. Arrange financing. A diligent car loan shopper is a savvy car buyer. Unless you’re paying cash, you should examine all financing options available to you. Compare annual percentage rates on loans from banks, credit unions, and other lending institutions. It’s always a good idea to get pre-approved on a loan, so you can leave financing out of negotiations over the price of the vehicle.  

3. Research used car prices. Don’t be conned into paying more than the fair price for the used car you’re eyeing. Resources like the Kelley Blue Book, Edmunds, and the Consumer Reports’ Used Car Price service provide unbiased, reliable price information on a wide variety of used cars. You can also browse classified ads published in local newspapers to get a general idea of how much used cars similar to your candidate car are going for. Remember to adjust used car retail prices for the car’s age, condition, mileage, and options. 

4. Check the history of the vehicle. A used vehicle that’s been put to use for several years or changed hands at least twice might have racked up more than its share of troubles and damages. Find out if the used car has a problematic past by getting a vehicle history report from CarFax or Experian Automotive. A vehicle history report can warn you of possible problems with the vehicle, such as odometer fraud and past damage due to fire, flood, or accident. 

5. Have the used car inspected by a certified mechanic. While a vehicle history report can alert you of possible problems with the car, a clean report does not guarantee a trouble-free vehicle. Protect yourself from unpleasant surprises by submitting the car to a complete diagnostic check by a certified mechanic. A qualified mechanic with extensive experience in automobile diagnostics can spot wear and tear, body damage, structural problems, and other signs of disrepair. 

6. Negotiate the sale. Price is where most car negotiations start and end. Arming yourself with accurate information about the car’s value will go a long way towards avoiding being ripped off. Don’t hesitate to ask the owner whatever questions you may have, such as the car’s service history and the owner’s reasons for selling the car. If an automobile diagnostic evaluation shows that the car will need some repairs, deduct the cost of fixing those repairs from the selling price of the car. Never allow yourself to be rushed into buying the vehicle unless you are completely satisfied with the terms of the sale. 

7. Complete the paperwork. Before you drive home with your acquisition, make sure that all paperwork pertaining the car and its sale is in proper order. You should have the documents transferring the title and registration of the vehicle to you, as well as any warranty card that may still apply to the vehicle.