Buying a used car can seem like an intimidating process. From ensuring that you have chosen the right vehicle to haggling with a salesperson and then meeting the actual devil -- the finance manager -- or dealing directly with your private seller, the road to car ownership can seem to be filled with many obstacles. If the car you seek isn't brand new but is instead new to you, it is wise to consider some of the things that make buying a used card different from procuring a new vehicle to ensure that you get the most bang for your buck.
Know the Car's Actual Value
When buying a new car, you can look at the sticker price or the invoice value to determine the cost of the vehicle. But when you're buying a used car, determining the value can be a bit more difficult. Once you find a few cars in which you are interested, determine the cars' accurate used values by referencing the printed Kelley Blue Book or the N.A.D.A Guide, or by searching the online Kelly Blue Book or online N.A.D.A Guide. Knowing the value you discovered in one of these guides, when negotiating a sale price, will ensure that the used car dealer or private seller doesn't take advantage of you because you are uninformed.
Find Comparables
Just as comparables can help you when finding a house, finding similar cars for sale can help you get a fair deal on a used car. Search area car dealers or online car sales portals, such as AutoTrader.com, for vehicles of the same or similar make, model and year to see how much these cars are going for to determine if the deal you have found is a good one. When searching for comparables, take note of whether the prices you find are dealer prices or private-seller ones, as there is often a difference in these values. Specifically seek similar cars that are for sale through a dealer if you plan to purchase from a used car dealer, or through private sellers if you are going to buy from a private individual.
Get Car History
Even if you don't know the individual who previously owned the car you are planning to buy, you can still find out what happened to the vehicle in the past. Many dealers will provide you with a vehicle history. If yours doesn't, or you are buying from a private seller, use the vehicle's VIN to pull a Carfax report and see if the vehicle has any major issues about which you should be aware. Even if buying from a private seller who was the original owner of the car, it is wise to pull this report to ensure that your seller is being completely honest with you and make sure that the car doesn't have any skeletons in its closet of which you should be aware.
Consider Warranty
If the vehicle you are planning to buy isn't very old, there may still be a bit of warranty on the car. Inquire about the car's warranty. If there is an existing factory warranty, this warranty should transfer to you upon purchase from the dealer or private seller. If the car is not under warranty any longer, ask the dealer how long the dealer guarantees the new car. Carefully inspect the vehicle before this time period elapses. If buying from a private seller, it is highly unlikely that the seller will make any guarantees.
Ask About Return Policy
Some dealers give buyers an "out" if they change their minds about a car purchase, while others do not. The Federal Trade Commission recommends that all used car buyers inquire about the return policy of the dealer from which they are buying the vehicle. If the dealer has no return policy, make even more certain that you want the car before committing to the purchase. If there is any doubt, walk away. If you are buying from a private seller, it is wise to consider your purchase even more carefully, as private sellers are almost never willing to accept returns.
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