How To Buy A Used Car
The first step to buying a used car is choosing a vehicle, or at least narrowing your options. Ask yourself: How many passengers do you regularly carry? What sort of trunk or cargo space do you need? What is the minimum gas mileage a car has that will stay within your budget? What would your auto insurance be? Are there certain vehicles you feel more reliable or offer a better warranty? Once you’ve decided on the possible makes and models, it’s time to find the one.
Photo by KB35 via Flickr
Before you buy a car you want to know
What are the specifications?
Make sure the car you’re looking at, is the one you researched. Many models have an assortment of engines and options and it’s easy to get confused.
How many miles does it have?
Lower mile vehicles generally mean less wear and tear on the vehicle. Anything above 15,000 miles/year is considered a high mileage vehicle.
How many owners has it had?
A car that’s been passed around the whole neighborhood, or an owner that’s selling after owning only a few months could be a sign of a lemon. This is also a good opportunity to find out the history of a vehicle, for instance, if it’s been in the same family. My current car was bought and traded into the same dealership for an upgraded model; it gave me confidence in my purchase that the previous owners liked it enough to buy a new one.
Is the title “in hand?”
This is generally only a concern for private party vehicles. If the vehicle is financed, the title is held by a financial institution. The money must be paid to the bank or credit union for you to take true ownership of the vehicle. In this situation, I suggest making a deposit with the person, and purchasing the vehicle the next business day at the financial institution so the title can be released to you immediately.
Is it a “clean” or salvaged/branded title?
A vehicle that has suffered damage that was too expensive compared to the vehicle’s value may be salvaged. This can happen through theft, car accident, and other reasons. Some salvaged vehicles are fixed to near perfect fashion and are perfectly safe to buy, but unless you have some knowledge of mechanics and bodywork I wouldn’t make this your first choice. In some states like Nevada, it’s even illegal for a private party to sell a salvaged vehicle.
Has it been in any accidents? If so, how was it repaired?
Accidents do happen. Sometimes they happen more than once. A car accident can range from a small fix to a complete t-bone. The small fix is generally repaired and the owner sent on their way, while the larger incident may result in the aforementioned salvage title.
A rule of thumb is replacement is better than repair. During repair, a bondo fill can be used. This is where a (hopefully) excellent body worker fills in a crush or dent that can’t be pulled out. The vehicle is sanded, painted and sent out the door. Unfortunately, if you don’t have a great body shop, the bondo can warp and looks like putty. It is also a cheap fix and may be indicative of the state of other repairs.
Does it have service records available?
Service records prove that general maintenance has been done and may alert you to any future recommendations from the mechanic.
Why is the party selling it?
There are perfectly rational explanations to sell a car. Someone might need more passenger or cargo space, or need the cash. You may have to weed out some people who are just tired of a vehicle with never ending repairs.
Can you have your mechanic look at it?
While the large franchise dealerships generally have reputable mechanics on site, you should be able to request a mechanic look at a vehicle any other time, whether small dealership or private party. If you like the car, tell the salesman: “At the end of our test drive, if I like the vehicle, I’d like to take it to my mechanic for an inspection. You are, of course, welcome to come with me.” A salesman working on commission is very unlikely to deny your request.
Buying the Car
You can buy a car from a dealer or from a private party. Buying a car from a dealer simply means you are buying from someone whose business is selling cars; a dealer can be a major operation with an automotive franchise, or a single individual who sells cars from his driveway. Buying from a private party means you are purchasing the vehicle from an owner.
Dealership
If you are interested only in a brand new car, a large franchise dealership is where you’ll head. Since they order direct from the manufacturer, in some cases, you can even custom order the options you want. However, the depreciation when it rolls off the lot can be a hefty bill to foot. A dealer ...
