How to Buy a Used Car - Tips from an Expert

While the emotion that comes from buying a new car with that new car smell feels great, the truth is that your new car will depreciate in value the moment you drive it off the lot.

Many savvy car buyers find that purchasing a good used car can provide all the fun and reliability with great financial value. Here are some tips from our experts when buying your used car.

Know Your Price Point and Priorities Before Shopping

As with all major purchases, set your price point before jumping into that hot Mustang. Know what you can afford and what is important to you. Doing your homework online beforehand is a great way to understand the marketplace, and how to get the most bang for your buck.

What is important to you? Getting a high-end car with high miles or a mid-range car with lower miles and less maintenance costs in the future? Everyone has a different perspective on what kind of car they want to drive every day; make sure you understand your own objectives before shopping.

Shop Around

There are a variety of places to shop for a great used car. Retail or storefronts are a great place to start, but they need to include a higher profit margin than private sellers. Many people have good luck using online options like Craigslist or even Ebay.  With Craigslist, you can usually find more options locally, allowing you to complete an in-person inspection and test drive. Another option is to look to rental car companies that need to sell off their fleet. These vehicles may be maintained better than privately owned cars, as they are kept in constant care and maintenance during use.

Check Out the History

Just like Dad told you, making sure you understand the history of a used car is the number one rule. Ideally, you will be able to take the car to a good mechanic for a thorough inspection to determine if the car has been in an accident or flood. (Hint: Check the bolts on the doors and hood to see if the paint has been stripped from them. If so, it is likely that these parts of have been replaced and the car was in a major accident)

If this is not possible, request the VIN number off the vehicle and run a history report off the internet. Two good companies are CARFAX and AutoCheck. A few dollars up front can help you avoid a costly mistake. Many retailers also offer certified programs like the MOTOR Trend® Certified Advantage program. Talk to your used car dealer about what these programs include.

An Ounce of Prevention

At the end of the day you are purchasing a used vehicle, so there are some proactive things you can do to protect your investment and future cash outlay. Include in your total budget an investment in items such as:

• Front end alignment
• New tires (if needed)
• Minor upgrades like oil change, new wiper blades, fluid top off
• Extended warranty coverage

There is nothing worse than getting a new used car and having problems with it that first week. Be realistic about your purchase with some initial investments to assure a great car buying experience!