Tips on How to Buy a Used Car
Buying a used car is a great way to save money, and still get a car that meets your needs. There are many tips to follow when purchasing a used car, many of which can save you headaches, financial difficulties and more problems down the road.
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Things You'll Need
- CarFax Report
- Ability to test drive the vehicle
- Internet search capabilities
Instructions
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How to Buy a Used Car
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1
Research the type of car you are looking to purchase. Once you have located a specific vehicle, run a CarFax report with the VIN. Some dealerships will provide one to you for free. If possible, buy a "certified" vehicle from a dealer. These cars are put through vigorous testing and checks, and are guaranteed for a certain amount of miles or years (often which ever comes first).
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2
Research the amount of miles the vehicle has on it. Generally speaking, the car should have no more than 12,000 miles per year. So if you are buying a 2005 car in 2009, it should not have more than 48,000 miles on it.
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3
Research how many owners the car has had. This will often show up on your CarFax report. If the car has had multiple owners in a short amount of time this could be a big red flag. It could signal a problem that could lead to costly repairs.
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4
Search for the Kelley Blue Book Value of the vehicle. Knowing what the book value of that car is will help you haggle with the dealer on the price. See resources for a link.
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Test drive the vehicle. Many used cars are sold online, but you should always take the car for a test drive to get a "feel" for the vehicle and how it handles. Seeing and driving the car in person will also help you identify wear and tear on the vehicle.
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Call your insurance company before purchasing the car. Get an estimate of what the insurance will cost you per month for that vehicle.
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Know your budget. Work out the maximum amount you can afford to pay for the vehicle (whether purchasing the car straight out, or financing it), and undercut that price by 15 pecent. Use this figure to negotiate with the dealer to try and save extra money.
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Tips & Warnings
Be aware of disaster area vehicles. There was flooding in the Midwest in 2008, wild fires in Southern California in 2007 and a series of devastating hurricanes, including Hurricane Katrina in 2005. Many cars in these areas were labeled "disaster" vehicles and had major water damage. Knowing where your vehicle came from will help you determine if this particular car has had previous damage.
