How to Buy a Used Car for Cheap

Buying a car can be a hassle, but putting in the time to research and get the right car for the right price will pay off for years to come. Here is how to accomplish just that.

Difficulty: Moderate

Instructions

Things You'll Need:

• Internet access
• Time
• Money
• Basic car knowledge
• Negotiating skills
• Basic tools

1. 
    
   I bought this for $850...with tax, title, and registration.

   The first step is to narrow down your search. What kind of a car are you looking for? Once you have decided what type of vehicle fits your needs, you need to determine what sort of vehicles are considered "good" for that segment. Kelley Blue Book is a great resource for finding what cars have been perennial chart-toppers for reliability, safety, fuel consumption, and the like.

2. Start your search online to get an accurate look at the average of how much cars are going for. Craigslist, Auto Trader, and Oodle are great resources online for finding cheap cars. Search for the vehicles that you have already decided would be a good fit, and bypass any vehicles that are not on your list no matter how good of a deal you think they are. By narrowing your search, you will not need feel like you need to be an expert on all makes and models in order to find the right car.

3. Once you have found a good amount of vehicles, it is time to figure out more accurately what a "good deal" will entail. Use Kelley Blue Book again to compare each individual car that you find. Don't forget to include every bit of information provided, including the year and the mileage. A car with 100,000 miles on it can very easily be worth 30% more than a car with 175,000 miles.

4. Once you have found a vehicle that is between 25% and 50% under KBB value, that would be considered a "good deal". It is time to call the seller to determine if it is in the condition described. If possible, get the VIN number so you can run a Carfax on it. Pass on any vehicles that have reconstructed titles or rolled back odometers. However, just because a car has a gap in its history according to Carfax doesn't necessarily mean it is a bad car. Give the seller a chance to give an honest explanation.

5. Never buy a car sight unseen. If you don't know the first thing about vehicles, bring a friend along that does. If you don't have a friend, and the price of the vehicle you are considering is above $2,500 or so, it might be a good idea to hire an ASE-certified mechanic to look at the car. While some problems that a car might have are easily fixable, a mechanic can determine what problems a car might have and estimate how much they may cost to fix.

6. Often, a seller will knock the price down by a few hundered dollars in order to get it out of their driveway. Don't be afraid to negotiate, all they can do is say "no".

7. Don't be afraid to walk away. If the car is not a good deal, or even if you are getting bad dishonesty vibes from the seller, you are under no obligation to buy a car even if you come to look at it. Don't be pressured into buying a car that you will have to live with for a while.

8. Once you have determined what kind of car to get, you have done research into how much it should cost, found a good example of one, and bought it for less than what other cars of that year and in that condition are selling for...congratulations, you just bought a car for cheap!

Tips & Warnings

• All else being equal, miles are the number one in determining how much longer a car's lifetime is going to be. Buying a late-model car with less than 80,000 miles may be one of the best monetary decisions you make.
• Not all cars are created equal. Some manufacturers have reputations for different aspects of their vehicles (reliability, quality interiors, etc) for a reason--their cars often reflect these aspects! Determine what is important to you before you decide what kind of car to buy.
• If you know how to fix cars, a car with a few minor things wrong with it can be a blessing; they can be bought a great discount compared to a car with nothing wrong with it.
• Don't be afraid to ask friends and co-workers if they know of anyone who is selling or thinking about selling their car. Sometimes the best deals can be had from this!
• In the back of dealership lots you can often find cars that are not "good enough" for them to sell used, so they often sell them for next to nothing at the auction--don't be afraid to make an offer on these vehicles.
• Don't be romanced into buying a car, they are just machines, and there are millions out on the road. Just because it is in the color you like doesn't mean it is going to be a good car. Think with your mind, not with your heart!

Resources

• This site cross-references your search for a car with many other sites online!
• Craigslist is a big classified site online.
• Sometimes you can find a great used car on eBay!
• This site is for car-only classifieds.
• For all things car-pricing related, this is the site.

[braintees]

on 10/30/2009 Excellent tips @ the bottom too. Let everyone know you are in the car market - you never know! Great article! 5* rec

[judymasse]

on 10/19/2009 Excellent article! I will refer to this the next time I buy a car. Thanks Jpor, Judy