How to Buy a Used Car With Cash

If you can buy a used car with cash, you won't have to worry about making a payment every month. If you decide to sell the car in a year or two, you won't have to be concerned that you owe more than the car is worth. You can buy a used car for cash from either a dealer or private party. There are special considerations for dealing with each type of seller to help you negotiate the best possible deal.

Instructions

1

Decide on the year, make and model you wish to purchase. Weigh factors such as gas mileage, safety and reliability. The Being Frugal website suggests checking Consumer Reports for safety and reliability data to help narrow down your choices. You can get information about recalls from the National Highway Traffic Safety Administration's searchable online database.

2

Determine a fair price for the type of used car you wish to purchase with cash. Being Frugal recommends checking the Kelly Bluebook price for wholesale, private sale and retail. Used car prices may vary regionally, so check newspapers and websites to see what your vehicle of interest is selling for in your area.

3

Locate suitable cars to consider for purchase. Check private seller ads and dealer websites. Private individuals tend to sell at a lower price, but dealers often have certified used vehicle programs. Cars sold under the program are thoroughly inspected and usually come with some type of warranty.

4

Don't tell dealerships that you plan to pay cash for the car. Many dealers hope to make money by handling your financing. If they know you won't be taking out a loan, they may not be as willing to bargain. If you are looking at a car offered by a private seller, the opposite is true. Tell her you plan to pay cash and she may be more willing to negotiate because she knows she won't have to wait while you find financing.

5

Have the car inspected by an independent mechanic before you finalize the purchase. You can skip the inspection if you are buying a certified car that comes with a warranty. Otherwise, have a mechanic look it over thoroughly to catch any potential problems. Depending on what he finds, you can either decide not to purchase the car or use its condition as a bargaining tool to get its price reduced.

6

Get a receipt that spells out the price of the car and any promises made by the seller, and make sure that she signs it. Dealerships will already have a contract for this purpose. Don't rely on verbal assurances from either a dealer or a private seller. Promises are worthless unless they are put down on paper and signed.