Information on Buying a Used Car

Buying a used car instead of a brand-new model can save you a great deal of money. However, a used car comes with the risk of not always knowing what you're really getting, and it can be difficult to assess the car's true value. To ensure you are getting the best deal possible and the best quality, it is to your advantage to gather as much information as you can.

Benefits

Buying a used car offers a variety of benefits, in addition to the lower sale price. Your cost of insurance will also be lower, and the car you're interested in may still be covered by the factory warranty. Some car dealers also sell used cars that come with their own warranties. If you buy from a friend or relative, you can eliminate the uncertainty of buying from a used car salesman.

Finding Cars

To locate used cars, you can check the classified ads in your local newspaper or visit used car lots. Another option is to search websites such as AutoTrader.com and Cars.com that offer numerous used cars for sale as well as pictures, prices and car specifications. You can narrow your search to within a specific amount of miles of your location.

Financing

According to CarBuyingTips.com, most banks will not finance a used car that is more than four or five years old, and they will charge about a 2 percent higher interest rate for a used car as opposed to a new car. Instead of using a bank, consider obtaining financing online. One potential resource for used auto financing is Up2Drive.com.

Expert Insight

A challenge of buying a used car is being able to determine an accurate and fair price for it. By using tools found on Edmunds.com, such as True Cost to Own and True Market Value, you'll be able to calculate the best price for the car and determine how much you can expect to pay in maintenance and repairs after the purchase.

Warning

You can't always trust what the salesperson or previous owner tells you about the history of a used car, especially if they are strangers. To ensure you know the truth about any possible prior damage to the car or to verify its mileage, use an independent service that provides vehicle histories. Two common services are Carfax.com and AutoCheck.com.