Urban Cars Blog presents: the best tips from car dealers on how to buy a used car!
You probably want to buy a used car because it can help you save money on registration, taxes, and auto insurance. This is a result of wear and tear, which causes the car’s total worth to decrease over time.
However, given the inflation we all suffer from, the current used-card market is also problematic: supply is limited and prices are skyrocketing. This can cause you trouble when looking for the perfect vehicle for you.
Believe it or not, some people prefer to get a new automobile because it can be less expensive than purchasing a used one, particularly if you’re shopping for a late-model car.
However, given the tight supply and high pricing in the present used automobile market, it’s possible that you won’t get precisely what you want at the price you want. Moreover, purchasing a new automobile might sometimes be less expensive than purchasing a used one, particularly if you’re shopping for a late-model car.
I still remember when I got my driving license at 22 years old, after many trials and errors. Neither of my parents had a driving license; I wasn’t interested in cars either, and when my mom got me my first vehicle, she told me that she wanted a new one for me.
I knew that she didn’t have enough money, and if I’m being honest, I wasn’t that good of a driver either, so I told her it was better to buy a used car. She agreed, and I ended up with a tiny red vehicle that was good for a girl who didn’t like speed. Besides that, my 4-wheeled ladybug didn’t have any accessories either.
Even though it was just a car to take you from one place to another—nothing crazy—it was very expensive. However, you don’t have to make the same mistakes I did, so if you want to buy a used car for less money, I have some tips for you.
I’ve talked to a couple of car dealers, and they told me how to buy a used car that has all the features you need without breaking the bank. Keep reading to find out!
1. Decide the features you need
Choosing the right car for you might not be the easiest task, so before you go hunting for the perfect vehicle, you have to be certain about the features you want it to have.
For instance, if you love to bike and you’d like to travel to different places and take your bike with you, that might imply a car that has enough cargo space to put the rest of your gear in and also be able to install a car bike rack.
If you have a larger family and you want to fit everyone in there, you should look for a spacious vehicle with plenty of cargo space. And if safety is your number one priority for you, check out the Insurance Institute for Highway Safety for crash tests.
One of the things you have to keep in mind when you buy a used car is that all of them are different. Some of them have driven more miles and have lots of wear and tear, and that might not be right for you.
Write down a list of must-have features, then look for models that fit your needs. When you find something that meets your checklist, create a list of a few car models to research in more detail.
If you want to buy a used car, these are all the things you need to know!
2. Set a budget
Whether you want to buy a used car or a new one, there’s one thing you need to pay attention to: your budget. There are two ways you could pay for your vehicle: in cash or by taking out a loan.
If you plan on paying with cash, don’t spend all your savings on the automobile itself, because you’ll need money for insurance, registration, and potential future repairs.
Many people take out car loans so that they can protect their savings or purchase a newer and more expensive model. If you’re among the ones who plan on getting a loan, the first thing you need to consider is getting approved for it.
You can use a car loan calculator to calculate the payments and term lengths to find out how much you can afford to put down and pay each month. By putting down around 10% of the buying price, you can reduce the amount that you will need to finance to buy your desired vehicle.
Moreover, you should try to set aside money in your budget each month so that your vehicle expenditures, including gas, insurance, and car payments don’t exceed more than 20% of your take-home income.
Don’t forget to think about the entire cost of ownership as well. Even though certain cards can be less expensive at first, the costs might change over time due to depreciation, insurance, upkeep, and repairs.
What do you think is the most important aspect when you want to buy a used car?
3. Platforms to check out
Besides going to a car dealership and getting yourself a used car that’s been verified, you can also check different websites that list used vehicles.
Plenty of marketplaces, such as Used Car Search Pro, Autotrader, and Autolist, aggregate listings from dealerships, online retailers, and even people across the country. Take a look, and when you find something you like, you’ll receive the seller’s contact information.
There are also auto retailers, such as Vroom, CarMax, and Carvana, which give you the chance to complete the purchasing process online. These vendors own the inventory and sometimes have return policies if you’re not satisfied with your purchase.
If you want to buy a used car from a private party, you can check out Facebook Marketplace and Craigslist. You can get a fantastic deal from sellers because they’re often looking to make a quick sale. This means that you have to pay attention to potential scammers.
The majority of used auto dealerships also list their inventory of vehicles online. However, if you love to see the cars you like, it might be better to go to showrooms in person.
4. Get a vehicle history report
When you buy a used car, you need to get a vehicle history report. This provides you with details on the history of an automobile, such as previous owners, mileage, title information, and any significant incidents. Certain reports also show if necessary maintenance was completed on schedule and at what location.
In some cases, online ads sometimes provide free car history report access. Besides that, the majority of dealers usually give their new owners complimentary memberships to car history report services.
If you can’t get a free report, you can purchase a single report or a short-term membership from a trusted source such as AutoCheck or Carfax.
Car reports can also provide you with a brief overview of your potential car’s history, but they can’t give you all the information you want to determine a car’s dependability.
Even if you saw a report and you’re content with its results, you should still go and take a look so that you know for sure whether it’s the one for you or not.
Do you want to buy a used car?
5. Check your car’s price
Once you have a certain idea of what car you want (before you physically go to inspect it), look up the model in a pricing guide, such as the National Automobile Dealers Association, Kelley Blue Book, or Edmunds.
These guides can help you estimate the market value of the car you like by estimating its condition based on factors such as mileage, age, and available options. If you know the current market value of your potential vehicle, it can help you negotiate better if you want to purchase it.
The majority of price guides will give you several rates. If you want to buy a used car from a dealer, you should pay attention to the “dealer retail” pricing.
If the vendor happens to be your next-door neighbor, you need to consider the “private party” pricing. It’s also possible that you have noticed that the price guidelines indicate the car’s trade-in value. If you want to trade in your present vehicle at the dealership, make sure that you priced your current car properly so that there won’t be any problems.
Before you make any decisions, keep in mind that it’s very important to thoroughly study the descriptions of the various condition levels. Every price guide has a different grading system to distinguish between “clean” and “outstanding,” for instance.
6. Discuss with the seller
If you’re certain about the vehicle you want to get, the next step in this process is contacting the seller. Ask them if the offer is still available, then continue with specific questions about the automobile, especially if you want to purchase from an independent seller.
These are some questions that you definitely need to ask the private-party seller: how many owners were there? Are the service records accessible? Is the title clear, and do they have it? (A clean title demonstrates that the vehicle is free of liens.) How was the asking price determined? Is there any useful information that wasn’t included in the ad, such as an incident? Is it possible for a technician to check the car?
We have many other expert-approved tips on how to buy a used car, so keep reading!
7. Test-drive the car
Now that you have talked to the seller and know a little bit more about the car, you should go for a test drive. This is a crucial step when you want to buy a used car because it gives you important information about how the vehicle responds and whether there’s a problem with it or not.
Remember the following information when you go for a test drive: when you start the vehicle, all of the warning lights should turn on for a few seconds, and then go out. Make sure to check the engine, oil pressure, brakes, and airbags—the four most crucial automotive components.
Choose a test drive route that includes a variety of terrain, including hills, uneven pavement bends, and even a brief section of highway, so you can get a better idea of how the vehicle reacts.
Examine the car’s visibility and pay extra attention to any blind spots, its acceleration and deceleration characteristics, the brakes’ responsiveness and predictability, and the ergonomics of the driving experience.
Besides that, check its mechanical state: pay attention to any odd sounds or sensations that can point to worn tires or suspension components, and test the features that are important for you, such as the sound system, cargo capacity, and back-seat legroom.
Do you find these tips on how to buy a used car useful?
8. Car inspection
If you’re satisfied with the test drive and you think that the vehicle is in good condition, you shouldn’t buy a used car until you talk to a mechanic to inspect it. That might cost you between $100 and $300.
Even though you buy from a dealer or from a private-party seller, they should be okay with professional inspections. If a seller refuses to do so and tells you that they’ve already inspected it, it might be a sign that they’re lying, so you’d better not get that car.
How to buy a used car – keep reading for other amazing tips!
9. Don’t forget to negotiate
Some people think that negotiating with a seller is intimidating, but if you know what the car’s value is and you’re prepared, it will be easy. Don’t worry, I have some useful tips for you: as I’ve previously said, compare the seller’s asking price to the average market price you discovered on the pricing guides and start negotiating from there.
If you buy a used car from a dealership, they’re the pros there, and they know all the tricks. Moreover, a smart suggestion I can give you is to not be a monthly payment buyer. If you have a pre-approved loan, it means that you’re a cash buyer (as far as the dealer knows), so you should negotiate on the price of the vehicle, not the size of the monthly payment.
After that, make sure you give an offer that is rather on the low side but still interesting for them to like. Gradually improve your offer so that they know they can’t play you.
Don’t rush during the negotiations. Take your time and repeat the numbers you hear. If it’s easier for you, write them down. Confirm with the seller that you’re referring to the “out-the-door” price, which means all fees and taxes, or just the sale price of the vehicle.
Don’t say yes to a deal before you know more about the fees implied. Some dealers will try to add bogus fees to take back some of the profit they lose during the negotiation.
Don’t feel compelled to say yes to something just because those people spent their time with you. If you don’t like what they tell you or you feel like you’re not making progress toward a deal, just walk out and tell them you’re not going to buy.
10. Make the purchase
You have to include the vehicle in your insurance policy before you officially become the proud owner of your new car. The automobile is then all yours to pay for, usually with cash or a cashier’s check.
Make sure the vendor correctly signs the title that you get. Title jumping is an unlawful practice that might happen to you if the seller’s name isn’t on the title.
If you’re in doubt, you should look for further details on the state’s register page. Depending on the state you live in, title transfers can generally occur within 10, 15, or 30 days.
If you want to buy a used car that is still subject to a loan and you’re purchasing it from a private seller, get in touch with the lender to arrange a closing. If the lender is a bank, ask them to meet the seller in a branch office and close the deal there.
Even if you have a preapproved loan to pay for the car, the finance manager at the dealership will probably offer to beat the loan conditions if you’re at the showroom. Trying to get a higher loan rate is not harmful, but don’t forget to confirm if the loan’s other conditions are the same.
Moreover, the financial manager might probably provide you with more items and services before the contract is drafted. Getting a cost-effective extended warranty at the right price can give you peace of mind, but first, you need to find out how much warranty is remaining on the vehicle.
Once you’re done signing the sales contract, you become the owner of the car. Take as much time as you need to review the contract, and don’t let anyone pressure you to finish it faster. The contract will include all the agreed-upon sales prices and additional items, such as documentation fees, state sales tax, and registration fees.
Keep in mind that dealerships might try to add some additional fees, and not all of them are necessary. Ask the finance manager about them, so you can understand the presence of those fees in the contract. If they can’t give you a good answer, you’d better ask them to remove them.
Whether you want to buy a used car or not, there’s nothing better than a gorgeous aroma in your vehicle! Here‘s my favorite car scent. Check it out, you’ll love it!
Do you know any other tips on how to buy a used car? Leave them in the comments! If you liked reading this article about how to buy a used car and you’d love to check out something else from us, here’s a fantastic post for you: 6 Cars That Will Last You a Lifetime
