There are many things to keep in mind when buying a used car and taking time to do some homework will save you a lot of money and hard work later on. Things that you’ll need to consider include your driving habits and how many miles you travel in a week or month, as well as your budget and how flexible. Plus, there are many different places to look for a used car, and the most conventional methods may not be the way to save the most money. Knowing what you are looking before you start the process is important.
Dealerships & Private Owners
When buying a used car you have the choice of going with a dealership or a private owner. There are advantages and disadvantages to both. While a private owner may give you a better deal than a car lot, they also may not be willing to do the maintenance on it, and you will not get the same protection that you would by going with a dealership, as there are laws and rules that govern car sales. However, there are some disadvantages to going with a dealer as well. One is that they will try to get a higher price than what the car may be listed at, and since they know how to work the system you may find yourself taken advantage of if you don’t know what you are doing.
Taking The Risk Out of Buying a Used Car
If you want to take some of the risk out of buying a used car from a dealer then the first thing that you should do is decide where you are going to shop for the car, and then check out the dealers that you are considering to see if their previous customers were happy with them, and if they have sold cars that gave out or had major problems in the past. This is usually fairly easy to check, with a simple internet search for customer reviews, or by contacting the better business bureau to determine if they have had any claims filed against them.
As far as eliminating some of the risk when the car is being purchased from a private party, the best thing that you can do is to ask a lot of questions about the car, and pay attention to the answers. If the seller is evasive, or tries to manipulate you into purchasing quickly, or drops the price when you start asking questions then you might want to question their honesty. However, you can also pay a small fee to have a mechanic check the car out before you buy it. If you have narrowed the vehicles you are considering to just one or two this might be financially viable and keep you from buying a lemon.
Car Values and Prices
You can get a general idea on what a car’s value is simply by browsing the internet and looking at car values. However, a much more accurate method is to look up the car, with the information that you have about it, in the Kelly Blue Book, a directory that maintains up to date car prices on vehicles. The Blue Book will tell you the price that you might receive for a trade in from a car dealership, what a private seller might sell it for, and what the retail price is for a car dealership. These are just suggested prices, but they can be an accurate estimate as to whether or not someone is trying to take you. There is no charge for the service on the Kelly Blue Book website.
Your Used Car Budget
You’ll also need to decide what your budget is for a used car. For most people this is fairly simple, as they have set money aside for the purchase. But you’ll need to decide if you want to spend extra to get certain features or if your budget is absolutely fixed. Also, you might want to consider what you’ll do with the money if you get a great deal, such as getting an extended service plan, a new paint job or new tires. Your budget is the first step before you go shopping for a car, because it will eliminate a lot of wasted time on cars that you can’t afford.