Help With Buying Used Cars

Used car negotiations can be less stressful.

While the image of a brand new car sitting in your driveway can be tempting, choosing to buy a used car may be a better choice. Buying a used car can often result in more car for your money with less headache. Some of the factors to consider when buying a used car include mechanical condition, repair history, reputation, cost and clear title transfer.

Model

The first step in any used car purchase is to decide on the make and model of car that fits your needs. Unlike new car dealerships that offer a limited selection of choices, the used car market can offer a wide range of makes, models and option levels. Narrowing down the field of possible candidates can reduce the time spent looking at cars. Consider issues such as make, model, 2- or 4-door, automatic or straight drive transmission, options and color.

Research

With a make and model of used car in mind, do a little research on the vehicle. Consumer websites and magazines can offer some background on the historical dependability of the model, recall history, common problems, resale value and positive points. This information may help with vehicle selection or indicate a change of direction.

Select

Utilize used car magazines, classified listings, local used car dealers and the Internet to find several vehicles that fit your selection. Typically, each of the vehicles selected will offer different options and features. Having a choice of several vehicles will help with negotiations and elimination of unsuitable cars.

History

Before buying any used car, do a little research into the vehicle's history. Check the mileage listed on the registration or title to determine that it is less than the current odometer reading to eliminate possible tampering. Ask the owner or dealer for service records or documentation on recall repairs to ensure that the car has been maintained correctly. If the dealer does not offer a comprehensive vehicle history, consider purchasing one. These reports can reveal issues such as vehicle flooding, fire, major damage or theft that may rule out the vehicle as a possible choice.

Considerations

Some details to consider when buying a used car include the addition of aftermarket options or customization, typical vehicle lifespan, recent changes such as new paint or repairs and anything else that does not seem right. These issues, and many more, may help in the purchase decision-making process.

Legal

In addition to mechanical condition, carefully inspect the legal issues of buying a used car. Details to consider include properly transferred title, current state or local inspection if applicable and proper recall documentation. Transfer of any remaining warranties or service plans should also be completed. While many of these details may not be a problem when buying from an established dealer, smaller used car lots or purchases from an individual should be closely inspected.

Financing vs. Cash

Choosing to buy a used car will typically result in a lower purchase price compared to purchasing the same model new. Even so, the choice of paying cash or financing should still be considered and will depend on your personal financial situation. If financing, consider a short term loan or a personal line of credit. While most cars lose value immediately upon purchase, used cars typically lose value faster.

References

• Edmunds: 10 Steps to Buying a Used Car
• Samarins: How To Buy a Used Car

Resources

• CARFAX: Vehicle History Reports
• Kelly Blue Book: Trade In & Used Car Values