In today's economy saving money is everyone's number one priority, so when it's time to purchase a new car it comes as no surprise that many are buying used rather than driving a new one off the lot. There are great deals on used cars today, but it's important to ask yourself some questions before signing on that dotted line.
First thing, why buy used? Besides potentially getting a better deal; as a car only a year old is 20-30 percent cheaper than new, you'll also save money on your car insurance. With so many buyers looking at used, dealers offer more reliable cars; some even still under the factory warranty and several carmakers are offering certified used. Since safety is a major concern for used car shoppers, knowing the vehicle's history is crucial, but that's no problem as it can be easily traced using the car's vehicle identification number or VIN, (10 Steps to Buying a Used Car, Philip Reed, http://www.edmunds.com/car-buying/10-steps-to-buying-a-used-car-pg10.html).
Just because you've decided to buy used does not mean that it's not going to cost you a pretty penny. It's important to make sure that the car will fit into your budget by calculating the monthly payment, how much you'll put down at signing, and how much your car insurance will be. Having an idea of what class of car you're looking for will help you stay in your budget, but also find a car you will enjoy. You can also use Edmund's ‘affordable calculator' to estimate your payment and find models in your area that will fit your budget http://www.edmunds.com/calculators/.
Once you've calculated how much you're willing to spend, the next step is deciding how you want to finance. There are three methods of payment; cash, financing through a bank, credit union or online lender, or through the dealership. If you choose an independent source there are some advantages; “it keeps negotiations simple in the dealership, allows you to shop competitive interest rates ahead of time, removes dependency on dealership financing, and encourages you to stick to your budgeted amount,” (http://www.edmunds.com/car-buying/10-steps-to-buying-a-used-car-pg10.html).
Once you have financing underway; search around to determine where to purchase. Looking at used cars through private parties, used car section of new car dealerships and independent used car lots gives you a larger variety to choose from. If you decide to go with a private party be sure to called ahead of time and ask questions to eliminate cars with major issues prior to seeing the car. Using this check list during your phone conversation will help you weed through the lemons http://static.ed.edmunds-media.com/unversioned/img/car-buying/used-car-worksheet/used.car.questionairre.pdf.
If you go the route of a dealership; make sure you're comfortable with the salesperson working with you, and have no distractions. You don't want to make a bad deal because you skipped out on lunch or that second cup of coffee.
Here comes the fun part; test drive! You're not going to know if the car is the right fit until you've taken it for a spin. If you are not that knowledgeable on automobiles be sure to bring someone along with you who is. Check these features while on your test drive:
• Acceleration from a stop
• Visibility (check for blind spots)
• Engine noise
• Passing acceleration (does it downshift quickly and smoothly?)
• Hill-climbing power
• Braking
• Cornering
• Suspension (how does it ride?)
• Rattles and squeaks
• Cargo space
(http://static.ed.edmunds-media.com/unversioned/img/car-buying/used-car-worksheet/used.car.questionairre.pdf)
Love the car? Great! Read over all of the agreement and make sure you understand everything before signing. Once you've done that, nothing left to do but enjoy your new car and pat yourself on the back for being a smart used car shopper!
