Used Car Buying Guide

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.

You Need to Buy 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.

The biggest fear in buying a used car is that it has hidden or unknown problems. Most dealerships are now responding to this by offering Certified Used Vehicles. When you buy a used car from a good dealership, you can trust that it has been through comprehensive physical and mechanical inspections. When you buy a certified used car that is only a few years old, you can usually expect it to be nearly on par with a brand new car.

How to Purchase Wisely

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

Be prepared before you go shopping this type of large purchase. You then should know at least the style and the condition you desire, if not the make, year and model of the vehicle you are looking to purchase, as this will help trim off some time in 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. Do Your Research

Make sure not to decide on a car by just how it looks or how well the make and model is supposed to operate. There are some vehicles that are in great shape on the outside, but as you drive them off the lot some serious problems show up one by one. Read some customer reviews to make sure you know what the car is like that you are about to purchase. No vehicle is without a single flaw, but enough research will keep you from buying 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

Even though, you can buy some great cars from individuals, you must be very careful about doing this. There are certain regulations dealerships follow, when selling used vehicles that individuals do not have to follow. This means the cars are typically not the same quality from people, as they are from dealerships. You do not have to avoid buying from individuals though, just examine the cars closer to pick up any prospective problems.

4. Check Thoroughly

There's no such thing as "too careful" when you're buying a car - whether it's used or new. Take as much time as you want to check out the car. Take it for a test drive and put it through its paces. See how it performs at low and high speeds, on sharp turns and quick stops. Make sure that it doesn't pull to one side or the other, and that there are no strange clicks, rattles or whines while it's running. Remember that there are plenty of cars out there, so don't settle for one that seems questionable.

When the car passes your standards on the test drive and initial inspection, request the VIN history through services such as CarFax. You want the car's complete ownership history. If an individual or dealership cannot provide this history, it is worth doing the search on your own online. This history will show any possible issues such as possible engine problems or past accidents.

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

Many times, the dealerships are up for negotiating, but you will find some that want to stick to their prices. There is usually $2000 worth of pure profit added to the price of used cars. This allows for some negotiating on the price of the car in which you wish to buy.