Now that you know how to buy a new car, here are some tips on buying a used car.
1. Cast a wide net. Look everywhere. Online, newspapers, community bulletin boards, word-of-mouth. If you are looking online, use the aggregator Autotempest. In one step, the search engine will look for your car on Craigslist, eBay, etc.
2. Pre-purchase inspection (PPI). Before you buy a car, always, always have a mechanic you trust inspect the car. If the owner balks at an inspection, walk away. The $100 to $200 you spend is well worth it. The mechanic will inevitably give you a list of issues that need addressing. Use that list in your negotiations with the owner.
3. Consider Korean. The days of Hyundais as crapboxes have long passed. Hyundais and Kias are some of the most dependable cars out there. Consider a Korean car when you are used car shopping.
4. Judge the owner. Go ahead, judge him/her. Is he a slob? Anal retentive? A spendthrift? The owner’s personality is a great indicator of how well the car was cared for and maintained.
5. Receipts, receipts, receipts. Try to buy a used car that has a thick stack of receipts. This not only tells you what repairs have been performed on the car in the past, but also whether routine maintenance like oil changes and tire rotations have been done on a timely basis.
6. Do not let the used car dealer handle your financing. Ideally, you should pay the car in cash. If you can’t, try to get a used car loan from your credit union. Though there are many honorable used car dealers, there are some who are essentially predatory lenders, taking advantage of those with little income, poor credit, and lack financial literacy.
7. Run a vehicle history report. A report from a service like Carfax tell you, among other things, whether the car has been in an accident before, how many owners it had previously, and whether it has a salvage title. Though a vehicle history report is not necessarily 100% comprehensive or accurate, it is still extremely informative.
Image source: Maxichamp
