A Step By Step Guide To Buying A Used Car

You can save money on car insurance, registration, taxes, and depreciation by buying a used car. Here’s how to find a good preowned vehicle and negotiate the best price.

Determine Your Budget

Your total auto expenses in a month should not be more than 20% of your monthly income. Plan to make a down payment of about 10% and finance the car for only three years. Then, use an auto loan calculator to calculate the best loan for you.

Pick the Right Car

Based on how you plan to use this car, make a list of must-have features. Use this list to narrow the field when using online tools.

Shortlist Three Car Models to Research in Detail

– Check if these models are known for their reliability

– Check the estimated cost of ownership of these cars

Find Good Used Cars for Sale

Head to sites like Craigslist, AutoTrader, AutoList, or CarMax to find listings of the model you’re interested in.

Use a Pricing Guide to Estimate the Value

Assess the condition of the actual car you’re looking at (based on factors like age, mileage, etc.)

And use online guides to estimate the market value. Pricing guides give you several different prices including the “Dealer Retail” price and “Private Party” price.

Knowing this will help you negotiate effectively.

Check the Vehicle History Report

Use the vehicle identification number (VIN) to get a detailed report of the car’s history from Carfax or AutoCheck.

Test Drive the Car on A Route that Has a Little Bit of Everything

You want to make sure it performs equally well on hills, curves, even a stretch of highway. Pay attention to the visibility, brakes, acceleration, and cornering. Listen for any unusual noises or vibrations. Check the ergonomics, legroom, and cargo capacity.

Inspect the Car

If you liked driving the car, take it to a mechanic for further inspection of its condition. Skip this step only if the car is in a certified preowned (CPO) program.

Negotiate the Price

Here are a few things to keep in mind when bargaining with a salesperson:

– Negotiate on the price of the car, not the monthly payment: A lower monthly payment does not mean you’re getting the best deal.

– Start by making an offer that is on the low side that’s still enticing. Improve your offer slowly, in increments of $250.

– It’s easy to get confused. Repeat and write down the numbers you hear.

– Before you agree to any deal, ask for a breakdown of additional fees. If you aren’t making progress, don’t hesitate to walk out.