Next to buying a home, the purchase of car, whether it's new or pre-owned, is one of the biggest purchases a person can make. While there is a lot security that comes with purchasing a new car, buying a second-hand car is the path taken by many. Purchasing a used car can also be fraught with risk, since it's hard to know what you are really getting. By taking the right steps though, buying used can be a good experience.
What Are Your Needs?
Figure out what you need and what type of budget you have. This is a pretty obvious step. If you need to drive several kids around, then a two-seater sports car is obviously not going to work and you should probably focus your efforts on finding a decent SUV, wagon or minivan. On the other hand, if you are a single person then a small sports car or coupe might be all you need. Also take into account how the vehicle will be used. Will you be driving it daily on a long commute where the vehicle's fuel economy is important? Maybe you are just going to use it occasionally, in which case a car that doesn't get the best mileage but is fun to drive may be appropriate.
Start Looking
When buying a used vehicle, look at as many as you can possibly stand. The more you look at, the better chances you have of getting a great vehicle at a great price. Logical places to start are with your local newspaper classifieds and the weekly Autotrader (see Resources). Craigslist (see Resources) has become one of the best places to find deals on cars. Often people advertising on Craigslist need to sell the vehicle quickly, which can be used to your advantage when it comes to making a cash offer. eBay can be a good place to look for cars as well, but be extremely wary of vehicles that are too far away to be seen in person. If you do buy a car that you cannot see in person first, it is extremely important to at least have a mechanic do a PPI (Pre-purchase Inspection) on it. Also check out your local car dealers, where there will be a constant supply of pre-owned vehicles.
Inspect the Vehicle Thoroughly
When looking at a used vehicle don't be shy about looking at it as closely as possible. Carefully study the paint for any defects by looking at the bodywork in different angles. Open the trunk and engine cover and inspect the inner fenders to see if the car has been repainted or repaired or if it has accident damage. Examine the engine to see if is dirty or clean. Though a really dirty engine bay does not necessarily mean that the car has been poorly maintained, it can be a bad sign. Pull the oil dipstick out and see what the oil looks like. It should be amber in color and not black and grey. Look at the wear marks on the tires to see if they need to be replaced. Ask if there are any service records for the vehicle, which will more likely be the case with a private seller than a dealer. Also, inspect the title to make sure it is clear of liens and is not a salvage title from being wrecked, stolen or water damaged.
Test Drive the Vehicle
When you start the car, get out and see if there is smoke coming from the exhaust pipe while it warms up. All cars steam a little if it cold out and some cars even billow a little smoke out of the exhaust when they are first started (such as older Porsches), but excessive smoke is a sign of worn engine internals and a poor state of tune. Listen for odd clicks, rattles and clunks from the motor. When you drive, pay attention to how it feels. Is the steering solid and confidence inspiring? If it's vague that may mean the car needs suspension work. The brakes should have a solid feel as well. If it's an automatic it should shift from gear to gear as smoothly as possible, with minimal hesitation and jerkiness. If it is a manual, the clutch should engage near the top of the pedal travel and the gearbox should be easy to shift from gear to gear with no grinding.
Get A Pre-Purchase Inspection
Some of the best insurance you can have when buying a used car is having a qualified mechanic inspect the vehicle. Have this done by a mechanic of your choice and by all means pass on any vehicle if the seller refuses to let you have it inspected. A mechanic can give an itemized list of things the vehicle may need that you can then use to get the best deal possible. When purchasing a used vehicle, make sure it passes emission before buying it.
Barter
Almost every used car for sale can be had for a better price than it's being advertised for. Start low and then meet the seller at a price point that makes both parties happy. Also, having cash in hand will help you get the best price possible.
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