Used car shopping can be a tricky process, but there are several things you can do to make the experience easier. Whether you're looking to buy a car immediately, or just starting your search, these 10 tips will help you get the most for your money and find the car that works for your budget.
Identify Your Dream Car
Create a list of cars that you are potentially interested in buying. What cars do you admire on the road? Do you like any of your friends' cars? If so, ask them what they like and dislike about their vehicles. Be sure to look at the year, model and make of the cars you like. Don’t forget to think about what you and your family needs -- two, four or six seats. You'll also need to consider your gas mileage. Fortunately there are many used hybrids on the market.
Calculate What You Can Afford
Before buying a car it is important to sit down and figure out what you can afford. With high gas prices, you must factor in the miles per gallon (MPG) for the cars on your list in relation to how much you'll be driving. If you plan to finance the car, look into payment plans that will fit your budget. Calculate the cost of the car, interest rate and gas for each month before making a final decision. This is also the time to figure out if you want to own or lease a car.
Do Your Research
Once you've nailed down your price range and a few car models you want to buy, research potential problems the cars could have and the current market price. Check the Kelley Blue Book price and visit a few auto retailer websites to find the fair price for the car you wish to purchase. Remember, older models are cheaper, but they will also require more maintenance.
Shop Around at Private & Public Sellers
Although many dealerships also sell used cars, there are many other resources you can use when purchasing a pre-owned car. If you want to buy from a private seller Craigslist.org and AutoTrader.com are helpful when you're looking for a deal. Other places like Carmax have a variety of cars and some helpful reports. Sites like Edmunds.com can help you find car dealers near you with the make and models you seek.
Stay Focused at the Lot
Researching used cars online is easy, but you can get distracted at the lot when you see all of your options in front of you. While that cool convertible may be an amazing deal, if it isn't practical for your lifestyle or price range, you should stick to the plan. If you're shopping at a dealership you'll also have to keep the dealer focused. Don't let him or her try to entice you beyond what you requested, there are many car lots out there, you don't have to shop in a high pressure sales environment.
Inspect Carefully & Test Drive
When you're car shopping, inspect the car carefully. Thoroughly examine the exterior and interior of the vehicle. When speaking with a seller, ask detailed questions like: “Why are you selling the car?” “Have you ever been in an accident?” and “Have you ever experienced problems with the car?” If you're at a dealership ask about the car history and any flaws you see. If you find a car you like, take it for a test drive with the windows up and the radio off to listen for odd noises or squeaking. Test all features before you're done.
Ask for a History and Safety Report
After you test drive the car, whether you're shopping from a public or private seller -- be sure to ask for a history and safety report. If the seller does not have access to these, do not purchase the car.
Go to a Mechanic for Checkup
Ask the seller if they are willing to let you have a mechanic of your choice (one that you trust), check out the car and find any potential problems. If the seller refuses – do not purchase the car. Most car dealerships have mechanics on staff and they provide guarantees on their automotive work. Be sure to get a one-year warranty if you purchase your used car from a dealership.
Negotiate Your Price & Financing Plan
After finding a car in your price range, looking at both public and private sellers, inspecting the car, taking some test drives, reviewing a history and safety report, and talking to your mechanic -- it is the time to negotiate a purchase price on the car. Never simply agree to the asking price, there is always a deal to be made. Be prepared by bringing your research and being assertive about how much you want to pay. Many auto websites recommend finding financing before you negotiate a price that way, you do not have to deal with unexpected interest rates from dealers.
Go Home Happy
After negotiating a price that satisfies both you and the seller, you'll get to go home with a nice, budget-friendly car. If you buy from a dealership, make sure you have the contact info of the salesperson in case you run into any problems. Double check the vehicle's registration -- you want it to transfer successfully. If you have any questions about your car regarding registration or license plates, contact your state's Department of Motor Vehicles (DMV).