New cars are sleek, shiny, full of impressive tech, and have that fantastic new car smell. However, they also come with hefty price tags that can take your breath away- and not in a good way! The good news is that buying a used car will save you money on car insurance, registration, taxes, and depreciation. But buying a used car comes with its own risks. That's why it's paramount that you do your homework before committing to a car. If you don't do your research, you may end up paying more than you should for your car or, even worse, end up with a real piece of junk.
These tips will help to steer you in the right direction!
Key Takeaways:
- Buying a used car can help you save money on initial payments, auto loans, registration, and car insurance.
- Ensure you get preapproved for a car loan before the car search.
- When you've identified a car you may want to buy and secured a preapproved financing offer, you should delve deeper into a car's history- get the car history report, take a test drive, and have it inspected by an independent mechanic.
Determine How Much to Spend
There are two main ways to buy a used car- pay cash or take out a loan. If you're paying with cash, budgeting for a used car can be straightforward. Just ensure that you don't spend all your savings, and don't forget to set aside money for insurance, registration, and possible future repairs. Alternatively, you can take out an auto loan to protect your savings or buy a more expensive model. If you're considering an auto loan to finance your car purchase, it's wise to get preapproval before your car search. That's because it simplifies the buying process and puts you in a stronger position at the car dealership. It's also recommended that you:
- Plan to put at least 10% down, which will help lower the amount you'll need to finance.
- Aim to finance the auto loan for no more than three years.
- Budget to ensure that your monthly auto expenses, including car payment, gas, and insurance, won't be more than 20% of your monthly net pay.
Finding a Used Car
Searching for a used car used to mean scouring tiny newspaper classified ads, visiting car lot after car lot, and cruising shopping center parking lots searching for cars with "for sale" signs in their windows. The good news is that today, you can find nearly every used car for sale somewhere on the internet. Our used car listings, for instance, show hundreds of vehicles available at our dealership. You can narrow the search to the specific car model you're looking for and your budgetary limit.
Get a Vehicle History Report
You want to find out as much as you can about any car you're considering. One way of doing that is getting the vehicle's history report. You don't want to run all over town looking at cars that aren't worth your attention. A vehicle history report can tell if a car is worth pursuing or if there are too many red flags to keep it on your list. To get the report, you'll need to get the car's vehicle identification number (VIN) or license plate number, which you can often get from ad photos or the seller.
The vehicle history report can reveal the following:
- Accidents: Although it might not show very recent collisions, a vehicle history will include information about major reported accidents the car has been in. In some instances, the information can include details like airbag deployment and structural damage. The report uses data from state DMVs, police agencies, insurance companies, and other sources.
- Flood, Fire, and Other Damages: A vehicle history report will also reveal damages, such as water damage from floods, hailstorms, or fire damage. Water damage and fire damage should typically disqualify a car from your consideration due to the high potential of hidden damage.
Go For a Test Drive
When taking the used car for a test drive, turn off the stereo so you can hear any noises in it. Pick a route with hills, bumps, and even potholes. Even when you plan to use the vehicle on flat roads and highways, it's vital to test it on rough roads to get a sense of how it handles. Use the test drive to answer these questions:
Feel:
- How does it feel on flat roads or when it hits a bump or pothole?
- Do gears change smoothly?
- Does the car struggle to pick up speed?
- Is the break squishy or too sensitive?
- How does your body feel after the test drive?
Noise:
- Does the engine sound smooth when you accelerate?
- Does the engine rattle, grind, or knock when you idle?
- Do the brakes squeak?
- Are there vibrations or odd sounds under the hood when you accelerate?
Sight:
- Does black smoke come out of the exhaust when you start the car or accelerate?
- Can you see out of the car easily?
- Is the RPM gauge consistent when you idle?
Smell:
- Dial down the air conditioning- do you smell burning oil?
Get a Mechanical Inspection
A good test drive might have you ready to pen down that check and drive your ride home right away. But there's a crucial step you need to complete before deciding to buy a used car: get a comprehensive pre-purchase inspection by an independent mechanic. Yes, the inspection will cost you money -about $100-$200, but it can save you from major mechanical repairs soon after your purchase. Moreover, it might reveal issues that give you additional bargaining power in price negotiations.
Need Help Buying a Used Car? Call or Visit our Dealership!
To buy a used car, you've got to ensure that it's not a total piece of junk! The abovementioned tips can help you when buying a pre-owned vehicle. For more information about how to buy a used car or to check out the best used car in your area, contact our dealership today!
