How to Buy a Used Car in the U.S.A.

Buying a used car challenges even the most bargain-savvy person. It is an art form that brings you head-to-head with an adversarial negotiator trying to get the highest price for the car you want to buy. Achieving a bargain requires extensive research on the availability of cars, prices and conditions. While the process can be exhausting, it also can reward you with a dependable car at a bargain price.

Instructions

1

Research what is available. Search online resources, such as Auto Trader, Kelley Blue Book, Craigslist, eBay, online newspaper ads and dealer inventory. You can browse print ads as well, but you will probably get more results, quicker, online. Filter the results based on your needs, such as a specific car, type, year and mileage.

2

Inspect the cars in person and look for defects, such as chipped or faded paint, bald tires, dents or a cracked windshield. Test drive the vehicle and listen for unusual noises. If you are unfamiliar with car mechanics, bring along a knowledgeable friend who is better equipped to identify problems indicated by sound or "feel." While inspecting, write down the Vehicle Identification Number, usually located at the base of the windshield on the driver's side, although locations may vary.

3

Check the car's value on Kelley Blue Book or Edmunds. Be sure to enter the mileage, condition and add-ons. These resources will give you several options, including retail price, trade-in price and private-party sales. Retail price is what you would expect to pay at a dealership. Trade-in is what the dealership might offer for a trade-in. Private-party is the price when dealing with individuals.

4

Look up the VIN number on CARFAX. This will give you insight on the history of the car, including the number of owners, accidents, commercial use and sometimes maintenance. This information also will help validate the seller's sales pitch.

5

Negotiate the price. You should now know the car's value, condition and history, so use this information to derive the price you are comfortable paying. Start low in the negotiation and work up. The first price is rarely accepted. Do not be afraid to walk away. Potentially losing a sale is a powerful motivator for the seller.

6

Transfer the title. If you are buying from a dealership, they will likely handle all of this for you. In private party sales, the transfer instructions are usually printed on the back of the title, but normally involve signing the title over to the buyer. Be sure to get a receipt or contract showing payment.

7

Register your recently purchased car at the DMV. Be sure to bring the title and receipt. Depending on your state's requirements, you may need to pay sales and/or property tax. The DMV will instruct you about these taxes, if applicable, and possibly send you to another office for payment. Once paid, the process is complete.