4 Things To Do When Buying A Used Car

1. Research the vehicle you want

Before you even go to look at a car, you need to research the vehicle. Doing this will save you potential headache and provide you with valuable insight into what to look for when you actually do get to drive and see the car for the first time.
Here's some things to research:

• Features: Research all the features of the vehicle and which features are included on which trim. Look into the driving modes and any other features that may be important to you.

• Common Problems: Maybe the most important thing to research when buying a used car. Research common problems with the vehicle and what to look for when inspecting the car.

• Car History: Once you find the car you want that is for sale, you can use a service like Carfax to check the car's history. This will show you if the car has been in any accidents or had any major repairs. This is a must-do when buying a used car. If it has bad history, the value of the vehicle should be significantly decreased.

• Maintenance & Cost: Once you start looking at maintenance costs and vehicle reliability, you can start to get a good idea of how much the vehicle will cost you in the long run. This is important to know before you buy the car. For most people, reliability is very important, and the reliability index of a vehicle can be found online.

Here is a graphic that shows how many problems there are per 100 vehicles. As you can see, Lexus and Toyota are the most reliable

If you go to a dealership without a particular vehicle in mind, never commit to buying a car that day. Test drive it, talk numbers, and then go home to do your research, and sleep on it.

2. Actually TEST Drive the Car

Test driving a car is a crucial step in the buying process, as it provides firsthand experience of the car’s performance under various conditions. While many people only test drive a car for about 15 minutes, this isn’t enough time to truly get a feel for the vehicle. If you find yourself enjoying the car, let the salesperson know you’d like to test drive it for an hour or so.

During the test drive, pay close attention to how the car accelerates, brakes, and handles corners. Drive on different types of roads and at various speed limits, including major highways, dirt roads, and parking lots. Listen for any unusual noises and be aware of any odd smells, as these could indicate underlying issues. Additionally, test all the car’s features, such as the air conditioning, heater, audio system, and other controls. Remember, a test drive isn’t just about ensuring the car runs well, but also about determining if it’s comfortable and meets your needs.

3. Inspect the Car

Once you’ve found a car that catches your eye, start with a basic self-inspection. Look for anything unusual, such as signs of rust or loose parts. Check that all features are functioning properly, including the A/C, heat, power seats, and mirrors. Be thorough — open every door and sit in every seat. After your initial inspection, it’s essential to have the vehicle professionally inspected. Take the car to a trusted mechanic for a comprehensive check-up. If you’re buying from a dealership, ask if you can take the car to an independent mechanic. The cost for a professional inspection typically ranges from $100 to $150, which is a small investment to avoid purchasing a problematic or poorly maintained vehicle.

4. Negotiate EVERYTHING

Negotiating is probably the most stressful part of the car buying process. This is where all your knowledge and research of the vehicle will start to pay off. Even if your research shows that the car is priced fairly, you should still negotiate. The worst thing that can happen is the dealer says no. The best thing that can happen is you save a lot of money. Whatever your car inspection shows, you need to use that as leverage for a better deal. If the car has bad history or high mileage, use that to negotiate a better price on the vehicle.

• Finance Rate: Dealerships often add a few percentage points to the financing rate they offer through a bank. This is a way for them to make money. If you have good credit, you can likely get a better rate through your bank or credit union. Even with bad credit, credit unions often offer better rates. If you’re buying from a dealership that manufactures cars, they may have their own financing company, like Honda Financial Services or Ford Credit, which often offer the best rates.
• Extended Warranty: Dealership warranties are often overpriced and are usually third-party warranties that the dealership profits from. If you want an extended warranty for peace of mind, buy it from the manufacturer. These warranties are typically well-priced, cover most items, and are generally honored.
• Club Membership: Many dealers offer service shop memberships for maintenance. For example, a membership might cost $500, and offer lifetime oil changes for $70 each. While this might seem like a good deal, do the math. If oil changes typically cost $100, you would need 17 oil changes to break even. Always calculate the value of the membership before purchasing.
• Other Add-ons: Dealerships often try to sell additional add-ons like tire protection, paint protection, weather mats, and more. While these add-ons can be convenient, they are often overpriced. Consider whether you really need these extras and if you can get them cheaper elsewhere. For example, you might find better deals on weather mats or tire protection plans online or through your insurance provider. Always negotiate the price of these add-ons or opt out if they don’t provide good value.

Negotiating is an essential part of buying a used car, but remember that everything is optional besides some governmental fees like licensing and taxes. Some dealers will even try to charge you for gas fill-up. You have the power to choose what add-ons and services you want to include in your purchase. Whether it’s financing rates, extended warranties, club memberships, or other add-ons like tire protection and weather mats, you can decide what fits your needs and budget. By being informed, prepared, and confident, you can navigate the negotiation process effectively and secure the best deal possible. Happy negotiating! 🚗💨