Buying a used car means a significant amount of savings as compared to a new one. And if you choose your used car smartly, you can even save on ownership costs. Here’s how to navigate the tricky waters of used car buying.
Setting a budget
Don’t start by looking for a car with an affordable monthly payment. Look beyond that and check out how much the car costs to insure, park, and maintain. Look up pre-owned car warranties, average costs for common repairs, and reliability ratings too. Use all this information to set a realistic budget.
Finding the right car
Look at used car rankings and reviews online. Match cars you like with your needs. Consider size, performance, features, fuel economy, safety ratings, and insurance costs.
Checking CPOs
If you can afford it, go for manufacturer-certified pre-owned cars that come with a solid warranty, service records, and no accident history. Ideally, look for cars with excellent reliability ratings.
Finding affordable financing
Ideally, get a pre-approved loan offer from a credit union or a bank. Then, check if the dealer can beat that offer. Either way, ensure that you prepare well, save for a large down payment, and keep your credit score strong.
Deciding where to buy
Check reviews about the dealer you intend to buy from before making a deal. Check with the local Better Business Bureau about their track record and learn how it responds to complaints.
Find your car
Check all local used car listings online and communicate with sellers via email and phone before going to see the car. Gather all the details you need to gauge whether the car is worth checking out in person.
Research, test-drive, and inspect
Once you’ve narrowed down your options to just a couple of cars, check their vehicle history reports, test-drive them thoroughly, and hire a mechanic to inspect the car.
Negotiation and paperwork
Once the mechanic gives you the green light, it’s time to negotiate a deal, set the price, and finalize the sale and paperwork. Use your financing homework to wrangle the best price.
Add-ons, warranties, and insurance
Again, do your research and find out whether you can get these outside for a better price.
