So, you need a new set of wheels, but you can’t afford to shell out more than $20,000—the average cost of a new car. And you don’t want to drive around in an unreliable “old bomb” either. What are your options? The good news is that there are lots of great deals available on “previously owned” cars. However, be aware that buying a great used car requires navigating through a few special steps to ensure that you get the most reliable and safe car.
Follow these tips and you’ll be rolling down the highway with confidence.
Get the Facts
Figure out which car best suits your needs and how much you are able to spend.
Use the internet to do your homework. Go online to find out the value of a particular model, scan online classified ads, and search for car finance loans, among other things. Each car-buying site has a certain area of expertise.
Of course, you can do your research the old-fashioned way – at your local library. Look through popular consumer publications such as Consumer Reports for reliability and repair ratings, as well as general advice on the used car-buying process.
Places to look for used cars include: new car dealerships, used car dealers, private individuals, and auctions.
Unless you plan to pay cash, get quotes from at least two financing institutions, so that you know what payment and interest rate options exist before you talk to dealers.
Dealing with Dealers and Private Sellers
Once you have done your homework, know which car you want, and how much you want to spend, it’s time to start bargaining with the sellers.
Finding private sellers is as easy as checking the newspaper classifieds or going online to the electronic “classifieds” at websites such as AutoTrader or Kelley Blue Book. Don’t forget to check with your family and acquaintances to see if anyone is selling their car. When you buy from private sellers, you usually pay less than you would if purchasing from a dealer. However, you may not have as many legal protections. In many states the “lemon laws” do not apply to used car purchases between private parties. Therefore, although you pay less initially, you run the risk of getting lower quality as well. Check out your state’s lemon laws to find out what your rights are.
When talking to car dealers, remember that it is very difficult to get out of a contract once you sign on the dotted line. There is no 3-day “cooling off” period. Therefore, do not commit to buying or signing anything the first time you go in. Since you did your homework, take the information you gathered and show the dealer you are an informed person, so you can make the deal on your terms instead of theirs.
Negotiate based upon the selling price – not payment plans – and be sure to get full disclosure of every charge involved. Don’t take their word on promises made – get any proposal in writing.
Finally, follow your instincts – if you feel pressured or powerless when dealing with any seller or you sense they are playing games with you, LEAVE. There is always another good deal waiting for you around the block.
