What You Don’t Know About Buying a Used Car

Buying a used car is an excellent way to secure a reliable vehicle for your daily life. It can save you thousands of dollars while you have still invested in excellent automotive engineering and valuable features. Used car prices have now reduced since they peaked in 2022 and 2023. The average cost of a used vehicle at the start of this year is $25,328. They are a good investment as their prices depreciate slower than buying a brand-new car. 

Unfortunately, when buying a used car, it can be a minefield to find a trustworthy seller and a car with a clean history, whether that is from a dealership or a private seller. But do not fear; we have given you the manual and all the instructions you will never need so that buying that used car you have fallen in love with is a little less daunting. 

Get Preapproved for a Loan

Pre-approving your loan offers many benefits. It defines your budget and reveals any credit issues before you find the perfect vehicle. Just a tip: if you are unsure about your credit score, you might want to get it checked or build it up before looking at cars. Also, shop around for the best rate, as lenders vary on the criteria they need to approve a loan.  

A good rule of thumb to ensure that you don’t get into financial stress is a car loan should be no more than 20% of your take-home pay. Once you are pre-approved for your credit, it’s time to start looking at vehicles. 

When Buying from a Dealership

There is a playbook for getting the best deal when buying a used car from a dealership. The main point is to focus on one thing at a time and not give too much away when speaking to the salespeople. Think of it like a game of cards; you don’t show your hands too soon. It will give you a better standing when it comes to negotiating a price at a later date. 

Avoid purchasing add-ons at a dealership; they can be marked up by as much as 300%. Even though it might be only a small amount more each month, you are sure to get value for money somewhere else. 

Complete a Test-Drive

The test drive is one of the most critical parts of choosing a vehicle as you can find out so many things, including if the car drives well, if there are any problems, and if the car suits you or if you like to drive it. Note any squeaks, rattles, or needed repairs, and speak to a mechanic before committing to the vehicle. If the car smells of mildew, it could be a sign of water damage, so try to be as observant as possible.  

While speaking of mechanics, it would be best practice to take it to a mechanic so they can inspect under the hood, the interior, the exterior, the current mileage, and the tires; with their expertise, you can confidently make your choice. 

The Vehicle’s Documentation

The first piece of documentation that you need to check is the vehicle’s title. This will show you if the car has ever been in a wreck, suffered flood damage, or had any other issues. Most states will have all the information you need on the car’s title, but for the states that don’t, you will need to check the vehicle history next. 

Dealerships and savvy sellers will already have the vehicle history report ready for you to look at, especially if they want a quick sale. But you can buy your own from Carfax or AutoCheck if they don’t. This report will show you everything contained in the vehicle’s title, just in more detail. 

If you are still unsure about the vehicle and feel there is more to its history, checking insurance companies and police departments and contacting previous owners of the vehicle will give you a more comprehensive picture. Also, open recalls are another place where you might find out any information about your vehicle of interest.  

Check the Cost of Insurance

Once you know your budget and vehicle, the last thing you need to do before hitting the road is get insurance. Each driver and car will receive a unique quote based on their individual circumstances. Like your credit quote, shop around to get the best deal. Once you find one that suits your needs and budget, it is time to start enjoying your new investment.