How To Purchased a Used Car

Shopping for a used car is like going on a quest for treasure. There are great offers out there, and you have every chance of finding a good deal on a car that suits your needs and matches your budget with the advent of the Internet as a car shopping tool.

There are several benefits to purchase a used one instead of a new one: it will save you cash on car insurance, registration, taxes, and depreciation, which reduces the value of a car due to wear and tear over time. Since cars have never been more reliable, it also makes sense. For certain cars, it's not uncommon for well over 100,000 miles to be trouble-free.

Here's a rundown of the steps that you'll need to take to purchase a used car.

1. How Much Car Can You Afford?

A rule of thumb: If you are taking out a loan to pay for your vehicle, your car payment should not be more than 20 percent of your take-home pay. When you adhere to a tight schedule, you may choose to spend even less. Using cars will need a bit of extra attention, like new tires or maintenance from time to time.

If the vehicle you plan to purchase is out of warranty, setting up a "just-in-case" fund to cover any unexpected repairs might be a smart idea.

2. Build a Target List of Used Vehicles

If you are attempting to save money, considers more than one brand. We suggest that you make a list of three vehicles that meet your demands and fall within your budget. Consider one that is certified pre-owned (CPO) if you intend to purchase a car that is less than five years old. CPO cars have long-term warranties backed by the carmaker, not just the dealership selling it to you. The only people that can sell a CPO car of the same name are franchised dealerships that sell the same brand fresh.

3. Check Prices

You'll find used cars in new car dealerships' used-car stores, independent used car lots, used-car retailers, and websites where private-party vendors classify their cars. Of the four, the lowest selling price would usually be for private party vehicles.

4. Check the Vehicle History Report

Unless you buy the car from a close friend or family member who can vouch for its history, expect to get an automotive history study. It is important to take this early step. If there's a bad background record for the car you're looking at, the earlier you know, the better.

VinReport is the best-known source for free vehicle history report by VIN number. These reports will disclose important details about the vehicle, including whether the odometer has been rolled back or whether it has a rescue title, which means that the insurance company has reported a complete loss.

To get this detail, you can need the vehicle identification number (VIN) of the car, and in certain instances, all you need is the license plate number. These reports are issued for free by most major dealers if they have the vehicle in their inventory.

5. Contact the Seller

Once a decent prospective car is found, don't rush out to see it. Next, contact the seller. This move is an excellent way to develop a partnership and check the car's details with the seller. You may ask private party vendors why they part with a car or whether there are any technical issues with it. And if you're buying from a dealer, the easiest way to ensure the car is still in stock is through a phone call or email.

The seller will often mention something that was not in the commercial that could alter your decision to buy the car. A good reminder of what to ask is our used car questionnaire if you want to go deeper. You will find that the asking price of the car is the last question on our list. Even though many are tempted to bargain before they even lay eyes on the vehicle, waiting is easier. You will tie your bid to its condition until you see it.

6. Test-Drive the Car

The only way to know if this is the correct car make and model for you is to test-drive a used car. It's also a good way of determining the condition of this unique vehicle. So shut out the distractions and concentrate on your car. After the test drive, ask the owner or dealer if you can see the car's service logs. These will show you whether the vehicle has completed the expected maintenance on time.

7. Have the Car Inspected

Consider making a mechanic test it before you buy it if you like the vehicle. Google and Yelp are decent places to read reviews of local shops if you do not have a mechanic. A pre-buy inspection costs $100-$200 and will warn you of issues you do not find yourself getting. It's a smart investment.

Without much opposition, a private-party seller would probably let you do this. Many dealerships will let you borrow a car for inspection by an outside mechanic. Of course, you'll be paying for this. There's already been an inspection if it's a CPO car and the vehicle has a warranty, so there's no need to take it to an independent mechanic.

8. Get the Paperwork Done

If you're at a dealership, the finance and insurance office will sign the contract. There, you may be provided with additional items such as a warranty, anti-theft equipment, prepaid service plans, or fabric protection.

Some people prefer the peace of mind that comes with extended warranties, so this is something you might want to consider whether the car is either under the manufacturer's warranty or is a CPO vehicle. Study the dealership sales contract extensively. It lists the vehicle's cost in most states, a charge for documentation, a fee for a smog certificate, license fees, and sales taxes.

When you purchase a car from an individual owner, make sure the title and registration are transferred to you properly by the seller. In order to avoid after-sale problems, it's necessary to close the deal correctly.

Laws regulating the registration and licensing of vehicles differ from state to state. If possible, check with the local motor vehicle department to ensure no past-due registration fees for which you will be responsible if you bought the car. Ensure you have insurance for the vehicle before driving it away, whether you purchase it from a dealer or a private party.

Louie is the father behind the travel blog Browseeverywhere.com. He has a background in photography, E-commerce, and writing product reviews online at ConsumerReviews24. Traveling full time with his family was his ultimate past-time. If he’s not typing on his laptop, you can probably find him watching movies.