How to Buy a Used Car

Source: wikiHow

Sample Used Car Sale Contract

Sample Bill of Sale Disclosure Addendum

Sample Monthly Car Cost Calculator

1. 1 Decide on your budget. Whether you’re paying cash or taking out a loan, you need to know the maximum you’re willing to spend on a car. Consider how much cash you have available to devote to a car or use an online calculator to figure out what kind of monthly payment you can make.
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2. 2 Choose the most important features for your driving needs. If you drive a lot, you may need a car with good gas mileage. If you need to haul things around, you may need a trunk or an SUV with the capacity to fold down seats.^[3]
   • List the things you need in a car, such as good gas mileage, high passenger capacity, and/or hauling space. Create another list of things you like, such as body style, color, etc. Use both of them to narrow down your model choices so you won’t be distracted by a pretty car that doesn’t fit your needs.^[4]
   • For good gas mileage, look for a car that gets 25 mpg or better. How much hauling space you need depends on what you plan to haul. For instance, if you own a small business, make sure to pick a car that will hold your equipment.
3. 3 Look into insurance and repair costs. More expensive cars will have higher insurance rates. Plus, some cars are more costly to repair than other cars. Factor those costs into your decision when buying a car.^[5]
   • You can check with your car insurance company to compare rates on different types of cars.
   • Look online for comparisons of repair costs on car comparison websites. Some cars are more costly to repair because their parts are more expensive and/or more difficult to find.
     Plus, the more add-ons a car has, the more likely you are to have something break down.
4. 4 Get pre-approved for financing if possible. One easy way to figure out the max you can spend is to apply for a car loan. You can get pre-approved for an amount through your bank, and then you have a max amount.
   • To apply for a loan, go online to your bank’s website to fill out an application. You can also call into most banks to get financing.
   • Some banks may refuse to finance an older used car. Others may not finance one you buy from an owner. However, banks or credit unions typically offer lower interest rates than dealerships, so it’s a good idea to try.
   • Don’t rule out the dealership just because your bank is willing to finance your used car purchase. By letting the dealership know the interest rate you have negotiated with the bank, you may get a lower offer from the dealership. Of course, you can only finance through the dealership if you buy your car through them.
5. 5 Check the safety ratings on the cars you’re interested in. You want to be safe, of course, particularly if you’re driving other people around. The government gives safety ratings to all vehicles, which you can look up on the models you’re interested in.^[6]
6. 6 Compare and learn the price ranges for the models you like. Once you decide on a couple of models you’re interested in, check into the typical price ranges for those models. You can see which ones are in your budget, as well as use the information to cut a deal when you go car shopping.^[7]
   • Visit sites that let you look up and/or compare the prices of cars, so you can determine which ones are more expensive. For instance, try sites like www.edumnds.com or www.kellybluebook.com.
7. 7 Look at comparable cars across brands. If you like a small sedan, don’t just look at a Honda Accord or Civic. Check out other brands, too, such as Kia and Ford. You may find a car you like just as well at a lower price point.^[8]
   • Don’t forget to factor in things like dependability ratings and the availability of parts.

1. 1 Check out local dealerships. You’ll find dealerships devoted completely to used cars. New car dealerships also usually have a used-car section. Browse a dealership that carries the type of vehicle you’re looking for. Large dealerships are typically dedicated to one make of car, so you can look that type of car up online to find a dealership in your area.^[9]
   • For smaller dealerships, call ahead to see if they carry the type of car you’re looking for.
   • One nice thing about buying from well-known dealerships is they sometimes offer a used-car certification. That means they’ve fixed everything that’s wrong with the car, so you know you’re not getting a lemon. On the other hand, these pre-certified cars tend to be more expensive than other used cars.
2. 2 Look at online classifieds for cars for sale by owner. Check sites like Craigslist and Facebook marketplace to find listings for used cars. You can browse through these sites or search for particular models.^[10]
   • You can also ask your friends and family if they know of anyone selling a car. You may get a deal, and you at least have a character reference from your friend or family member.
   • You do have to be more careful when buying from another person. You definitely want to have the car checked by a mechanic, and you should be careful bringing cash to a transaction. On the other hand, you may get a better deal, as the owner doesn’t have the overhead costs of a dealership.
3. 3 Find cars on sites dedicated to selling used cars. These sites focus on used cars only, so you don’t have to dig through other items for sale. Plus, you can narrow down your search based on the criteria you’ve set for yourself, such as the make, model, year, and so on.^[11]
   • Some of the main sites are AutoTrader, AutoList, and CarMax.

1. 1 Take the cars for a test drive. When you find a car you like, it’s important that you drive it. It’s a way to make sure it runs well, but you can also see if you like the way it drives. Be sure to give it a thorough test drive, going on both…

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