6 Tips For Buying a Used Car

May 29, 2008 By Debbie Dragon

There are a number of reasons why buying a used car makes more sense than buying a new car.  I’d say just about everyone has heard the discussion about how much value a new car loses the second you drive it off the sales floor.  Plus- there are many people who don’t want to take out a loan to buy a vehicle and would prefer to pay for it with cash and avoid having to make payments and interest.

Here are 6 tips for buying a used car:

1. You Have to Save First.

 The only way to buy a car without taking out a loan or using other forms of credit is to save some money first.  Basically, when you are allocating your income to pay bills, provide entertainment, and savings accounts- be sure to allocate a portion of your income to your car replacement fund until you’ve reached the amount you will spend on your next vehicle.

2.  Research Until You Can’t Research No More!

Once you’ve saved the cash, it’s time to start looking for a car.  Try the classified section of the newspaper or the Want Ad Digest to get an idea of the types of cars you can buy with the amount of money you have available.  You may find you didn’t save enough money for the car you want, and you have to either go back to step 1 and save more; or consider different types of cars.

You can use the Consumer Reports magazine to find out used car reliability information, or check with a mechanic you think is honest to give an opinion on the most reliable vehicles in your price range.

3.  Never Buy The First Car You See

In other words- do some comparison shopping.  You can keep a folder with information from the Consumer Reports magazine, Auto Trader, classified listings, internet print outs from local car dealers, data from the Kelley Blue Book and/or National Automobile Dealers Association, etc.  Take some time to create a chart that shows a comparison between several vehicles in your price range- things you can include: make and model of car, year, price, mileage, and the contact information for the seller.

4. Save the Running Around- Use the Phone

When you find cars that interest you, call the seller and ask questions to help you narrow down your choices before you run from place to place to “try on” the different cars you are considering.  You might want to ask the seller:

• are you the original owner?
• what made you put the car up for sale?
• does the car have a clean title?

5. Inspection Time

When you find a car that meets your requirements and you’ve talked with the seller to get your initial questions answered, make an appointment to see the car in person and do your “inspection”.  Here are some things you should look for:

• Check tires for uneven wear.  Tires that are worn on the outside or inside edges only indicate the car may have alignment problems.
• Check engine fluids.  Oil should have a golden color- if it’s completely black, you could have problems. Transmission fluid has a reddish tint but is transparent.  It shouldn’t smell burnt.
• Don’t forget to bring a mirror!  Look under the car for fluid leaks on engine parts, dents and scrapes that might indicate damages that have been repaired.
• Are their irregularities in the paint or surface of the car?  Could be the car has been in a wreck and repaired.

If the car passes your inspection, ask to take it for a ride so you can listen for unusual noises, feel how the car handles and see what you think of it in general.  If all seems well, you may also wish to have your mechanic take a look at it before buying.

6.  Time to Buy

When you have a car that meets your own requirements, passes your inspection and that of a mechanic- you can proceed to buy it!  Don’t immediately offer the asking price on the vehicle.  If you found any drawbacks on the vehicle, mention them, and then ask the seller what his or her best price is.  You may then be able to counter-offer based on your knowledge of the car and the marketplace if you feel the asking price is a bit too high.

Posted in autos, cars, financial plans, lifestyle, purchasing

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