How to Buy a Used Car and How Much to Deduct for a Car Being Wrecked

A car that has been in a wreck could have sustained minor or serious damage. In order to determine whether a price deduction is necessary, you should find out the extent of the original damage, the condition of the title (whether it lists the vehicle as a salvage) and closely look at the overall appearance of the body work that's been completed. There are several resources you can consult to help determine a fair price.

Instructions

1

Research the pricing of the car you want to buy before negotiating. Go to the Kelley Blue Book and Edmunds websites to figure the private sale value of the car--consider it in fair to good condition until you have more information (see Resources). Use both sites, as no two appraisal guides are the same.

2

Ask the seller what kind of damage the vehicle sustained and what work was done to correct it (such as part replacement or repainting). Walk around the car completely to note any visible repairs, such as a bad paint job or noticeable spacing between body panels. Ask the owner to see the title so you can determine if the vehicle is a salvage.

3

Drive the vehicle to test for driving issues. Ensure that the vehicle drives straight, if not, it may have sustained frame damage, which can result in frequent tire replacement. If you want to buy the car after you drive it, make an appointment with a mechanic as soon as possible.

4

Arrange a time with the seller that you can bring the car to your mechanic. If your mechanic tells you the car is going to need a lot of work or that you are likely to have driving issues, find out the costs for repairs you might incur over time. Go back to the appraisal guides and change the condition to "poor" if there are significant problems with the vehicle.

5

Run a vehicle history report to find out when the accident occurred, using the AutoCheck or CARFAX websites. You'll need to input the vehicle identification number and pay for the report. If it was years ago and the mileage since then has increased, you can assume that the driver has driven the car without many problems since then. If you find that the vehicle was recently wrecked, you may want to walk away from the deal all together; this is usually a sign that the driver does not feel safe in the vehicle or does not like the way it drives since the accident.

6

Offer the seller the "poor condition" value you obtained from the appraisal guides. If there is still damage that is not repaired and you are going to have to put money into it, deduct accordingly, but the "poor" value is usually a pretty low offer. If he agrees, ask the seller how he'd like to accept payment.

7

Follow the Department of Motor Vehicles (DMV) procedures in your state. Call a local office if you are unsure of the rules. Make sure the title is signed in the right place by the seller and draw up a bill of sale, which can be handwritten, stating the date, vehicle identification information, the name of the seller, who she is selling to and the purchase price. Both parties must sign it.

8

Pay the seller before you go the DMV, or go together if you live in a state that requires notarization. Bring proof of insurance coverage to the DMV, complete your paperwork and obtain license plates to put on the car.