Tips on Buying a Used Car From a Dealer

Used cars can be an excellent bargain because their sales prices are usually significantly lower than new models. A used car that is in good condition can give you years of good service. Although there are many sources from which you can purchase a used vehicle, you might prefer the convenience of buying one from a dealer. If you do, you'll need to do some research and negotiate wisely to get a reliable car for the best possible price.

Finding Cars

Many dealers list their used car inventories online so you can search it from your computer before you spend the time driving to the dealership. Some also list cars on sales sites like Auto Trader. Search ads and dealer inventories to compile a list of likely cars you'd like to see in person.

Researching Prices

Before going to dealerships to look at the used cars in which you are interested, do some price research. You can access Kelly Blue Book online to get the wholesale, retail and private party cost of any type of used car. Use this as a baseline. Find prices for similar vehicles at other dealerships and in classified ads placed by private parties. This will give you negotiating power when you are at the dealership looking at a likely used car.

Shopping

Be prepared to spend some time shopping at dealers for your used car, looking at vehicles and test driving them. Don't let a dealer pressure you into making a fast purchase. Go to all the dealers you identified on your list and look at all the cars before you make a final choice. Make notes on your list about the car's condition, the way it drives, and anything else that might help you make your decision. Narrow down your list, and ask the dealer if he is willing to let you have the car examined by an independent mechanic. If he is reluctant, mark that car off your list.

Negotiation

When you have decided on the used car you'd like to buy--and a mechanic has verified that it is in good shape--negotiate a fair price. Most dealers leave negotiation room in their stated prices. Make your offer based on your previous research and the condition of that particular car. If the dealer will not accept your offer, move on to the next vehicle on your list unless you think the original price is actually acceptable.

Contract

When the dealer agrees to an acceptable sales price for the used car, have her put it in writing in a contract. If she makes any verbal promises, make sure she specifies them in writing in the contract. If she does not, they will be unenforceable. Watch for any hidden fees that the dealer might try to work into the contract. Read it thoroughly and demand any appropriate changes before you sign it.