How to Buy a Used Car

The hot car that was out of your price range just a few years ago may be much more affordable today--preowned. Here's how to buy a used car from a dealership or a private party.

Difficulty: Easy

Instructions

Things You'll Need:

• Car ads from newspapers
• Kelley Blue Book

1. Follow Steps 1 through 3 in How to Buy a New Car. Browse the Kelley Blue Book for used-car pricing (see Resources).

2. Search car ads from as many sources as possible, including dealer ads in newspapers and private ads in print and online classifieds to find out what's available in your area. Many dealers offer manufacturer-certified preowned cars; they generally charge more, but may offer a limited warranty.

3. Make a list of the features that you want, along with acceptable mileage limits and condition of the car you're willing to buy.

4. Set up appointments to see your top choices in person, and bring your most car-savvy friend. Take notes.

5. Ask for maintenance records and inspect cars closely. Fear rust. Web sites such as Cars.com and AutoWeb have used-car buyer's checklists that can be helpful (see Resources).

6. Ask the seller questions in order to rule out lemons (see How to Avoid Buying a Lemon). Check the car's history using a service such as Carfax, which can list a car's actual mileage, number of title changes and if it's been wrecked or salvaged (see Resources).

7. Test drive the car. Does it feel good? Take it on the freeway to check for alignment issues. Accelerate from zero to 60 mph (97 kph) to see how punchy it is. Brake sharply and see if the car pulls. Turn everything on at some point and have your friend walk around and see that they're all working: brake lights, headlights, tail lights, hazards, turn signals, dome light, wipers, fluid lights, radio, heater and AC/fan. Test all the doors, windows and the horn. Check that the tires have good tread since new tires can put you out hundreds of dollars (See How to Choose the Right Tires).

8. When you've found the car you want, take it to your mechanic and have it checked out for about $60.

9. When you've agreed upon a price with a dealer, you'll get the necessary forms, including a bill of sale and the car title (or pink slip). If you're financing, you won't get the actual title until the car is paid for. Some dealers handle all the paperwork, including tax.

10. When you've agreed upon a price from a private seller, you may not get a bill of sale, but you can find samples in car-buying books or online at Edmunds (see Resources). Or agree to meet the seller at the DMV to fill out sales forms there.

Tips & Warnings

• A private-party sale doesn't include sales tax. That's paid to the DMV.
• Walk away from sellers who try to close the deal too quickly. There's the hard sell and then there's the "unload it before they know what hit 'em" sell.
• You'll need proof of insurance to register your new car at the DMV, along with the bill of sale and title. States have different time frames that this must happen in and different emissions requirements as well.
• Check that the vehicle identification number (VIN) on the dashboard matches the VINs printed elsewhere on the car (on the frame under the hood or in the door frame) and the bill of sale. Mismatched VINs could indicate stolen parts or a hot vehicle.
• If the seller doesn't have the car's title to sign over to you, this means it's not paid off and you need to get the title from the seller's bank. You need a title to register a car.

[lemonproof]

on 2/8/2007 Hi, my name is Tadeo Sanchez, a class A technician, and I have recently set up a business that helps reduce the chances of purchasing a 'lemon'.

My business is called Lemon Proof and for more information check out my website: www.LemonProof.com

Be sure to also check out the my blog for some pictures on some of the nightmares my clients have been fortunate to avoid...enjoy!!

Cheers,

Tadeo Sanchez

on 3/15/2006 Look for problems on the car that you, personally, know how to fix. Point out the problems to the owner. When you see these problems, make certain your face (with the smile on it) is facing away from the owner.

on 11/22/2005 One good thing to do is research the available recalls and TSBs (Technical Service Bulletins) for the car you really want.

When you are sure the car is in great condition and is one you really want to buy, ask the seller if he has taken care of the recalls. If nothing else, this will show the seller you know the car inside and out and will also conveniently let you know if it needs a trip to the dealer sometime soon. If the seller says he isn't aware of any recalls, this may be a warning sign that the car was serviced less often than it should have been (it could also just be the innocent admittance of a naive seller). Either way, getting the car checked out by a reliable mechanic is a must.

TSBs are guides given to dealers and mechanics that detail fine points about a car's maintenance. For instance, if a car company finds that a lot of people are having a similar problem, the car company will issue a TSB that will tell the mechanic or dealer what to look for. Do your research, know the reviews, get it checked out. You will be a force to be reckoned with when getting a used car.