Buying a used vehicle is probably the second largest purchase you’ll make next to buying a home or a condo. With so much riding on this important purchase, it’s wise to know your options before you spend time looking at any vehicles that you may be interested in owning.
Here are our 5 top tips to help you make an educated decision.
1. Do your research.
Thanks to the Internet, you have access to excellent, free information on used cars, trucks and SUVs. From Kelly Blue Book to Edmunds and doing a search on Google by the vehicle make, model and year, you can see what it’s worth, what its strengths and potential risks are, other owners’ reviews, plus its resale value if you decide to trade it in a couple of years.
2. Find out why they’re selling it.
If you’re buying from someone who placed a classified in AutoTrader or your local paper, it’s always good to know why they want to sell. This will give you clues as to potential risks of future repairs and just how much room you may have to negotiate for a better price.
3. Get the fax.
When you are looking at a used car for sale, separate from the price and the features it has, a big concern is likely the car’s maintenance and repair history. You can ask the seller to give you a run down, but why not find out the facts for yourself. A new paint job and some minimal bodywork could be hiding bigger problems. Don’t get a nasty surprise after you hand over the cash to a private seller or sign on the dotted line at the dealership. We recommend that you use the services of CARFAX or AutoCheck.
4. Know your financing options.
If you’re buying from a dealership, they will make you aware of their financing options. They want to make it as easy as possible for you to get into a used car. But they may not have the best rate and terms for you. Plus, did you know that you could get financing for a private sale, too? Before you get started, check with your bank. See what rates and terms they have. Another option is MyAutoLoan.com. They provide an excellent site for you to research your financing options for either scenario.
5. Protect your vehicle.
If you have a choice between two cars … one comes with a warranty or extended service plan and the other doesn’t … which would you choose? Even if you have all the facts from what the seller tells you to the car’s history report from CARFAX or AutoCheck, this still doesn’t give you a guarantee that you won’t have repair bills in the future. Check whether the used car that caught your eye has coverage under the original factory warranty or if purchasing an extended vehicle service plan makes sense.
If you have any other used car buying tips that you think would be helpful, please leave a comment below.
Some people say If you can’t beat them, join them
You can’t always rely on the info on Carfax. They only show things that are reported to the insurance company. There could be hidden damage that didn’t get reported. Get the car looked at, take it for a test drive, and make sure you test the car as you would everyday driving it.