A Guide To Buying A Used Car

It can be exciting to purchase a new car, but is it worth the price you will pay? The salesperson makes the car sound like heaven and it sparkles in its newness, but most first-time car owners do not realize that a new vehicle drastically depreciates in value, as soon as they pick up the car to drive it home. The fact that you can purchase a used car for a lot less that the price of a new one, it is well worth considering the used one.

Why Buying Used is Smart

Many folks buy used cars simply for economic reasons. When you buy new, you're usually looking at ongoing payments and considerable interest. A car that is only a few years old may sell for fifty percent less than the current year's model. During the first year, a new car will lose at least twenty percent of its value, so buy smart.

Unknown or hidden issues are the scariest part of purchasing used cars. Many of the car dealerships help to soothe this fear by providing only Certified Used Vehicles for sale. When you purchase any used car through a reputable dealership, you can be assured that the car has been put through in-depth mechanical and physical inspections. When you purchase one of the certified used cars that are only three-years to four-years old, you can be confident that it is almost like new.

How to be a Smart Buyer

Now that dealerships have answered the consumers' demand for higher standards, it is not as risky buying used straight from dealerships. With any big purchase, you need to do research and any car is a large, important purchase. The car may look great and the salesperson makes it appear to be a great deal, but you still need to have your own information before spending your hard-earned cash on one. Follow the below tips to know how:

1. Have an Idea of What You Want

With a purchase this big, you can't afford to shop unprepared. Set your budget and know what you're looking for. You don't necessarily have to settle on a specific year, make and model, but knowing what style and approximate condition you're looking for can help you to narrow your search.

In fact, if you do have a specific car in mind, it's smart to broaden your horizons a bit to consider similar vehicles. There are some big names on the market, and with these big names come big price tags. If you're willing to widen your parameters a little, you may find something just as good at a far lower price. For example, you may be in the market for a Toyota Matrix; however, you might be just as happy with a Pontiac Vibe - a less-known vehicle, but one made in collaboration with Toyota, and with many of the same parts as the Matrix.

2. Perform Research

Don't base your whole decision on looks or reputation. Some cars look and seem wonderful when they're new on the lot, but a little research might reveal some glaring flaws that show up a few years down the line. Take time to read consumer reviews on any car that you're interested in purchasing. No car is perfect, but some simple research can prevent you from ending up with a lemon.

You should also know the approximate value for the car you want to purchase. You can find this value on KBB.com or Edmunds.com for the car in which you want to buy. If the car is priced too far off this value, do not buy the car.

3. Be Careful about Buying from an Individual

While you can find some great deals on cars by dealing with private individuals, this is an area where you must exercise extreme caution. An individual isn't operating under any regulations, so privately listed vehicles are rarely at the same level as those you would find at a dealership. That's not to say that you should avoid private sales altogether; you just need to pay greater attention to any possible problems or flaws.

4. Check Thoroughly

You cannot be too careful, when you are buying a new or used vehicle. Spend enough time to examine the car you are thinking about buying. Make sure to test drive to see how the engine runs and how the car handles on the road. Take it through both slow and fast speeds, quick stops and sharp turns. Pay attention to if the car drifts to one side or makes weird sounds as it goes down the street. Keep in mind that you can find a lot of vehicles for sale, so do not buy one that may have issues.

If a car checks out after your initial test drive and inspection, ask if the dealership can provide a VIN history check through CarfFax or a similar service. Make sure that you get the vehicle's complete history. If the dealership (or individual) is unable to provide it, it's worth the small investment to purchase the VIN check online for yourself. This will alert you to any possible red flags, accidents or potential problems.

Have a mechanic you know inspect the car for you prior to handing cash over to the individual or dealership. Explain to the mechanic the problems you have seen and ask how important these problems are. A mechanic should be able to steer you towards or away from buying the car. This is so worth the price compared to how much you will pay to buy the vehicle, so make sure to do this step.

5. Negotiate When Possible

A few dealerships have a "one price" policy, but most are very open to negotiation - in fact, it's expected. Many used car dealerships have about a $2000 margin for profit when they set their original prices. They are entitled to make a profit but you also have $2000 worth of bargaining power; don't be afraid to use it.