Friday, September 9, 2016

How to Purchase a Second-Hand Car

Set your budget before shopping for a used car, and consider all costs, including necessary repairs or maintenance items that need immediate attention. A used car can cost you more money in fix-up than you intended to originally pay.

Warranty

    Shop for a vehicle that has some warranty left on it or consider adding one afterward. Dealerships often include a standard used car warranty, or you may find a car still within the manufacturer's warranty period from a dealer or private seller. Ask a private seller if there is a transferable warranty for the vehicle (an extended warranty that was purchased by the owner). If you can fix cars yourself, this may not be an issue. But for the driver who has limited mechanical knowledge, vehicle repairs can cost more than a car is worth in some cases.

Considerations

    Find a mechanic to look at the second-hand car with you. Make an appointment to bring it in or determine if you can have the mechanic come with you to look at a car. Although this will cost money, it's likely you'll save in the future if you had to pay for a major repair, such as a transmission or head gasket replacement.

Search Methods

    Shop for cars by checking your local newspaper or free automotive classifieds publications. Or use Craigslist, which is updated often (see Resources). Go to local dealership websites to view inventory.

Paperwork

    If you need a loan to purchase a used car, obtain a pre-approval before you start shopping to save time. Call your bank to apply. Contact your local Department of Motor Vehicle office to find out what paperwork you need to bring for registration and titling--make sure the seller provides you with what you need (requirements differ by state). Check over the vehicle title before purchasing. Ensure there is no lien listed on the title as this often means the title is not transferable.

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