Advice for Buying a Second Hand Car

Buying a second hand car can be an ideal way to save money on a vehicle purchase and avoid the steep initial depreciation incurred on new vehicles. Despite these benefits, buying a car second-hand is usually more challenging than buying a new car. You may be forced into an "as-is" sale where the vehicle is out of factory warranty, and you never know exactly what the dealer paid for the vehicle, making negotiation more difficult.

Before You Step on the Lot

Because no two used vehicles are the same, shopping on the Internet when buying a second hand car is even more important than when buying a new car. Various sites on the Internet allow you to search for the exact vehicle you want or search for all vehicles within a certain price range. Before stepping on a dealer's lot, shop online to make sure they have something you want to look at. There is no need in visiting a dealer who doesn't have a car you are interested in. Branch out your search if you have to; compare prices in town with prices out of town. Even if you don't visit the dealer that is further away, you can always use his price as a negotiation tool.

Thoroughly Inspect the Car

Once you have found a car you are interested in, it is a good idea to have it thoroughly inspected. Most dealers will grant you permission to take the vehicle to the mechanic of your choice, with no strings attached. If the dealer will not allow you to, stay away because they probably have something to hide.

When you take the car to your mechanic, have him look for signs of sloppy maintenance and abuse. Make sure the mechanic lifts the vehicle onto a rack to look for oil leaks, damage or rust.

Negotiation

Check vehicle values from sites such as edmunds.com or nada.com to get an estimate of what you should pay for a car. It is usually best not to make the first offer on a vehicle, but, if you must, start about 10 percent below the trade-in value. The chances of buying the car for this are slim, but it gives the dealer a starting point for negotiations and lets them know you are an informed car shopper. If you cannot agree upon a fair price for the car, don't be afraid to sleep on it. Dealers know once you leave their lot, the chances of you buying the vehicle are slim; many dealers will contact you soon after with a better deal.