A Common Sense Guide to Buying a Used Car

Buying a car is often an intimidating, unpleasant experience. With a little preparation you can turn it into something a bit more enjoyable. Following are some common sense tips that can help prevent some of the most frequent pitfalls. This article deals specifically with buying a used car from a dealership, but many of these tips can be applied to buying any car.

1. Know What You Want. This may sound so logical that it’s silly to even discuss it. However, there are so many makes and models and options available that it’s easy to be overwhelmed, and dealers are only too happy to show you alternatives, often at a price higher than you had planned to pay. The bells and whistles may sound good, but do you need them? Before you ever walk onto a car lot decide what you want and stick with it.

2. Research Your Chosen Car. One of the best websites for used car pricing is kellybluebook.com. You provide year, make, model, and your zip code. Your zip code is necessary because cars have different values depending upon where you live. For example, convertibles sell better in California than they do in North Dakota and pick-up trucks sell better in Wyoming than they do in New York City. Check suggested retail and trade-in-value. Trade-in-value is the spread between retail and wholesale. Ideally you want to be as close to wholesale as you can get. If you’re buying from a private seller check the Private Party price. You can also get a feel for pricing by checking www.edmunds.com. Edmunds uses what they describe as True Market Value, an indication of the actual selling price of vehicles, although I have found these prices to err on the low side.

 

3. Obtain a Carfax or Autocheck vehicle history report. Once you have found the car of your dreams you should request from the dealer a Carfax (www.carfax.com) or Autocheck (www.autocheck.com) vehicle history report. These reports tell you if the vehicle has been involved in any accidents, fires, floods or theft recoveries. If the dealer is unwilling to provide you with such a report be cautious of what you are about to buy. You can check out a vehicle yourself at one of the above web sites if you have the Vehicle Identification Number (VIN). The VIN is located on the driver’s side dashboard close to the windshield, normally on a small plate. It will be a total of seventeen digits.

4. Visually Inspect the Car. Is the paint the same color all around? Are there any rough edges in between the doors, the trunk, or the hood? Do all the panels line up properly? Is there any indication of rust? Are the tires in good condition? If the tires are worn ask the dealer if they will provide new ones. Check the trunk for any signs of mold. Insure that the air conditioner cools and the heater heats. Bring along a tape or CD to insure the sound system works.

5. Test Drive the Car. Do not play the radio while you are driving. That’s a ploy many dealers use to cover troublesome noises. Also, make sure the salesman stays quiet while you take your test drive. Allowing him to talk while you drive is as distracting as playing the radio. Drive the car on roads you choose. Most dealers have a structured test drive route that shows off the best qualities of their cars and hides the not so good ones. Don’t follow it. If the dealer insists, you may want to walk away. Do both highway and stop and go driving. Stop and go driving can alert you to bad brakes, a shimmy in the front end, clunking noises and poor alignment.

6. Take the Car to Your Local Mechanic. If you have a mechanic that you trust, have him check out the car. If you don’t there are car care centers that offer used vehicle inspections for a nominal fee. If the dealer has nothing to hide they usually won’t mind having a mechanic look at the car. If, on the other hand, the dealer is unwilling to allow you to have the car inspected it might be a good time to find a different car and a different dealer.

7. Used Car Warranty. Find out what the dealer’s policy is on a used car warranty. Also, find out if your state has a ‘Lemon Law’ and what it covers. The Better Business Bureau can help with this information. You can also research used car warranties on the web.

8. Extended Used Car Warranty. The dealer will probably offer you an extended Used Car Warranty. This is where he can make more money than he did on the car itself. If you want one, or think you need one, check out warranties on the web. There are plenty of companies that will compete for your business. If you do buy an Extended Used Car Warranty make sure it is accepted in other states if you think there is any possibility of moving while the warranty is in effect. The deductible you choose will affect the overall cost of the warranty, just as it does on your insurance. Many insurance companies also offer extended warranties, so check with yours.

9. Vehicle Make Ready Charges. Check your dealer’s policy on Vehicle Make Ready charges. Ask for a copy of the work order that specifies what the dealer has done to the car before you take delivery. Some dealers attempt to sell cars “as is”, in other words you take the car and take your chances. Again, find another dealer.

10. Financing. Dealers can make more money on your financing than they can on the car, so check out your bank or credit union for financing. If the dealer finances the car they will quite possibly include extras such as car alarms, lojack, VIN etching, extended warranties, and tire protection in the financing. This makes it one stop shopping for the consumer, but it also increases the amount you will ultimately pay. Do a little of the work yourself and save your money.

11. Insurance. Many dealers offer auto insurance as well as cars. Again, offering you
insurance through the dealership increases their profits.

12. Price Tag. Before you leave find out exactly what the car will cost you. Any later additions are unacceptable. Dealers may try to add a ‘used car prep’ fee. Don’t accept it.

13. Pressure. If you feel any pressure at any point in the deal simply walk away. There are lots of cars out there. Dealers want you to take the car home with you the first day, they want you to envision the car as yours. Don’t do it. Tell them you want to think on it overnight. If they are insistent then give them a reason why you can’t get the car that day, insurance or financing will work. Take the night to think about it and research it. Dealers survive on car fever.

Hopefully, you’ve found a great car and a great dealer and your car buying experience will be good. Unfortunately, there are dealers who prey on the unprepared consumer. There is no reason to allow yourself to become the victim of unscrupulous car dealers. The internet is chock full of very helpful information, why not use it.