The Best Ways to Buy Used Cars

Buying a new vehicle, even a used car, can be a complex and expensive process. Because a car represents such a large expense, it's worth he extra effort to compare models, research vehicle history and argue for the best possible price. Knowing where to shop for a used car is the first step in getting a fair deal and a vehicle you can enjoy for years to come.

Dealerships

One of the simplest and safest ways to buy a used car is from a reputable car dealer. This can either be a new car dealership that also sells used models, or a dealership dedicated solely to selling used cars. In both cases, examine the terms of the warranty, as well as your state's lemon law, to know how well protected your purchase is.

Dealerships will generally charge more for used cars, but the security of knowing that the vehicle has been professionally serviced and even a short-term warranty can provide peace of mind. In addition, dealers are likely to have the largest selection of used vehicles, meaning that you're more likely to find the car you want without paying for too many additional features you don't need.

Auctions

Public car auctions are another place to find a deal on a used car. Auctions may sell vehicles that have been repossessed by the original seller, or impounded by police and never claimed. Some used car dealers get much of their stock from auctions, so by going directly to the source you can avoid the markup dealers charge for the service they perform on the car and any overhead costs they may incur.

Be sure to thoroughly inspect any vehicle you plan to bid on, since auctions generally sell cars without any sort of implied warranty. Estimate the cost of any repair or maintenance the vehicle may need and add this to the auction price so you don't overspend. Finally, set a limit and stop bidding once the car exceeds that price.

Private Sales

A private sale from one individual to another also has its advantages. Buying a car this way removes any protection from warranties or return policies. However, the lack of a dealership infrastructure means that private sellers can charge less for the same car. In addition, sellers who simply want to unload an old vehicle may be anxious to sell, even at a slightly lower price.

Read your local newspaper to look for private sales, which may be listed separately from cars being sold through dealerships. In addition, watch for sale signs on cars in your neighborhood, or cars parked at the road in front of private homes. Use the Kelley Blue Book, NADA, or another automotive pricing guide in determining the value of the car, then begin negotiating with the owner.