Used Car Buying Tips

Guide Note: Buying a used car is not without risks. There are plenty of scam artists and unethical dealers willing to roll back odometers and gloss over a vehicle's true history. Fortunately, there are ways to protect yourself. With some preliminary research, a critical eye and a commitment to getting what you want, you can get the best possible deal on a reliable used vehicle.

This page contains several Used Car Buying Tips. For a more complete walkthrough of the used car buying experience, please visit our page on How to Buy a Used Car.

Tips for Buying a Used Car

(Creative Commons photo by Rick Hall)
(Creative Commons photo by Rick Hall)
  1. Decide if you really need a new used car? A car is one of the most expensive things a person will buy in his or her lifetime. However, unlike a house, a diamond or a big sack of gold, cars are not an investment. With very few exceptions, cars lose their value as soon as they roll off the lot. Before buying a car, even a used one, ask yourself why you need one. And, answer honestly.
  2. Figure out if you can afford a car. When budgeting to buy a car, remember that cost of the vehicle isn't the only cost you'll encounter. Don't forget to take insurance, maintenance and repairs, fuel, licensing and registration and parking into account.
  3. Consider a certified pre-owned car. If you don't have enough money for a new car, but are afraid of driving off the lot with a warranty-less used car, consider a certified pre-owned vehicle. A certified pre-owned car is a used car that comes with a dealer guarantee and an extended warranty of 3 or more years. A certified pre-owned car will cost you more than a used car, but considerably less than a new one.
  4. Use multiple resources to search for a used car. There are several different ways to find a used car. You can find them through private owners, new and used car dealers, rental car companies, car superstores and dedicated online car listings like Cars.com and CarsDirect. You'll typically get the lowest price from a private owners, but car superstores, where the cars come with warranties, may present the least risk.
  5. Ask questions when you set up an appointment to see the car. When you speak with the seller be sure to ask why he or she is selling the car, how many miles are on it and whether or not he or she has the car's maintenance records. The seller probably won't have all of the vehicle's records, but by asking questions, you've already put him or her on the defensive, which will help when it comes time to negotiate.
    (Creative Commons photo by David Villa)
    (Creative Commons photo by David Villa)
  6. Inspect the car. Be sure to examine both the car's interior and exterior. You are looking for rust, imperfections, cracks in the glass, leaks, that the locks and windows work, the odometer reading, etc. The car's wear and tear should reflect what the seller has told you about the car.
  7. Inspect the engine. Look for any surface flaws. Pull out the dipstick. The oil should not contain any solid particles. Look for cracks or looseness in any of the belts, hoses or wiring.
  8. Inspect the driveway. While someone can conceal a car's physical imperfections, it's much harder to conceal a driveway's. Look for evidence of leaks and spillage.
  9. Test drive the car. Start your test drive slowly. Ask the seller about any unusual sounds. Run the A/C, the stereo, the power windows, the wipers, the brakes, the steering, etc.
  10. Do not buy the car when you test drive it. Now is not the time to pull out a cash deposit. You still need to check into the car's history and have it inspected by a mechanic. Do not lay down any money no matter what.
  11. Get a vehicle history report. It's plain and simple. Do not buy a used car without getting a vehicle history report. A vehicle history report will tell you the most recent official odometer reading; if the car was flooded, sold at auction or in an accident; and the number of owners and the dates each owner took possession.
    • A vehicle history report will cost you approximately $20 and can be obtained from one of the following online vendors Experian AutoCheck or Carfax.
  12. Get the car inspected by a mechanic. One of the best ways to figure out whether you're buying from an honest seller is to have an independent mechanic inspect the car. If the seller is hesitant to let a mechanic inspect the car, invite the seller to observe the inspection. If the seller is still hesitant, do not buy the car.
    • The inspection should take an hour and cost $50-75.
    • Ask the mechanic to rate the car's condition as excellent, good, fair or poor. Having an impartial, expert opinion will be useful when it comes time to negotiate a price.
  13. Disregard the seller's price. You need to start with your own objective research not the seller's asking price.
  14. Consult the Kelley Blue Book. The Kelley Blue Book will tell you what a car's trade-in, private party and suggested retail value is based on its make, model, mileage, years and options. Use these as a starting point for your negotiations.
  15. Find the median asking price. Research the same car's asking price on various used car websites including eBay Motors, UsedCars.com, Cars.com and CarsDirect. Find the median price. If this is lower than the seller's asking price, use this paperwork to negotiate a fair price.
    (Photo by David Di Biase)
    (Photo by David Di Biase)
  16. Get it in writing. You and the seller should complete at itemized bill of sale, which details the transaction amount. A free downloadable bill of sale is available from CarBuyingTips.com.
  17. Get the title. When you pay for a car, you receive its title. This is the document issued by the state that includes the car's VIN number and ownership information. The seller will sign the title over to you. You must possess the title to own the car. Do NOT buy a car or put any money down without it.
  18. Get an extended warranty. If you're buying a car from a private owner, than you're buying the car "As Is." Avoid buying "As Is" vehicles from car dealers. You want, at least, a 30 day warranty. Without one, you have no recourse if the car is a lemon. If you are forced to buy a used car "As Is," you can purchase an extended warranty from the following online vendors:

Have any more great tips for buying a used car? Post your tips to the discussion board or email them to Julia: Julia at mahalo dot com.

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