How to Buy a Used Automobile

By deciding to buy a used automobile, instead of a brand new one, you've made a great decision. According to a Bankrate.com article by Lucy Lazarony, the average car loses between 15 to 20% of its value each year--and the minute you drive a new car off of the lot, it will likely suffer an even worse depreciation. This depreciation is a great incentive to buy a used automobile because it allows the purchaser to take advantage of the depreciation that the original owner incurred.

Difficulty: Moderately Easy

Instructions

1. Decide which used automobile you'd like to purchase. You'll need to do some research regarding prices, features, gas mileage, seating capacity and performance characteristics. Figure out what style of car you're looking for, or be more specific and determine the exact make, model and year of the vehicle. A great resource for this kind of research is Kelley Blue Book.

2. Secure your financing before you go out and start looking at cars. Few things are as heartbreaking for a true car lover as finding the used automobile of your dreams at a great price, deciding to buy it and then having it slip through your fingers because you don't have your financing arranged. Visit your bank and get financed, or make sure you have enough liquid cash. Do so before you start hunting for cars.

3. Look at both privately owned cars, and those for sale at used car dealerships. Your best chance of finding the perfect used automobile for you will be to look everywhere available. Remember this, though: buying from a dealership is usually more expensive, but also less inherently risky. So, it's a balancing act between getting a good deal and being safe and secure.

4. Insist on an extensive test drive. This is especially important if you're buying a used automobile from a private party. On your test drive, you should drive on the freeway for at least part of the time, and you should make sure that the car performs well and has no issues for at least 20 to 30 miles of driving. If the owner doesn't allow you to do this kind of test drive, do not buy the car.

5. Feel free to haggle over the price. There are very few times in modern society where it's viewed as normal and OK to haggle over the price of something you're buying, so many people simply aren't comfortable with haggling. But, when you buy a used automobile, it's virtually expected. Make sure to negotiate the price down as low as you can, and feel free to quote the Kelley Blue Book price or other sellers' prices while you're negotiating.

Tips & Warnings

• * Don't settle or get discouraged if you don't find the perfect used automobile quickly. It's never a good idea to buy a used car with which you aren't truly happy, and patience and determination are definitely virtues in this type of situation. * Try to buy a low-mileage used car if you're someone who hates dealing with frequent maintenance problems.
• * Be extra cautious when buying from a private owner. You'll need to make sure that there are no liens against the car you're purchasing, and that they are the true owner before you buy a used automobile from them. To do so, go over all of the paperwork very carefully. Inspect the title closely and to ask the seller for picture ID to verify their identity. * It's a good idea to get a full car history report on any used car before you buy it. Such reports can be purchased from websites such as CARFAX using a VIN (vehicle identification number). * Don't rely on the seller's comments about the used car you're considering. Inspect everything yourself or, if you aren't a gear-head, bring someone along who knows their stuff to look everything over for you.

References

• "Know the Deal on Auto Depreciation" by Lucy Lazarony

Resources

• Kelley Blue Book Website
• CARFAX Website