How to Buy a Used Car

Shopping for a used car...

The three most common places from which you can buy used cars are the following:

1. Private parties
2. New car dealerships
3. Used car lots

Of these sources, private parties usually have the most reasonable prices. It is also a more relaxed transaction to buy a used car from a private party rather than to face a salesman at a dealership.

Still, there are reasons in favor of buying a used car from a new car dealership. Many used cars, on new car lots, are trade-ins. Dealerships usually get these cars at rock-bottom prices. If you come in with a low offer — but an offer that gives them some profit — you just might get a great deal. Furthermore, many dealerships offer certified used cars that have been thoroughly inspected and are backed by attractive warranties.

Another source for used cars that has emerged recently is used car lots run by rental car agencies. These former rental cars have between 15,000 and 25,000 miles on them and are usually one year old. Most rental car lots offer no-haggle buying, and their prices are very competitive. Furthermore, the factory warranty is still in effect.

Locating Good Used Cars

Much of the running around once associated with used car shopping has been eliminated by the Internet. Using Web sites such as AutoTrader.com or Classifieds2000.com or Craigslist.org you can search for cars that might be for sale down the street, across town or around the country. You can designate specific criteria such as make, model, options and price range to pull up a tailor-made list of prospective cars for you.

But there is another way the Internet can help. If you decide to shop for a used car at a new car lot, you can bring up a list of dealerships in your area. Additionally, you can get their telephone numbers and the directions to drive there. In some cases, car lots will even have their inventory online.

Leave No Stone Unturned

While the Internet is an amazing resource, you should still try the conventional method of car shopping. First of all, ask your friends and relatives if they are selling a used car. Chances are, this will turn up a likely candidate. And buying a car from someone you know means you can learn more about the history of the vehicle than you would from a dealer.

Also, be sure to keep your eyes out for cars with For Sale signs in the window. Sometimes, notices of cars for sale will be posted on bulletin boards at supermarkets or in local schools and colleges. Finally, don't forget old faithful — the newspaper classifieds, particularly on Saturday and Sunday.

Call Before You Go

A lot of time can be saved by calling the party selling the car before you go to see the vehicle. In this way, you can eliminate cars that have problems such as excessive mileage or a salvage title (this means the car has been declared a "total loss" by an insurance company, because of a serious accident, a theft or a natural disaster). Create and use a form when calling that will prompt you to ask key questions. Verify the asking price in the ad.

After talking to the selling party, if you are still interested in buying the car, you will want to set up an appointment for a test drive. If possible, make this appointment during the day so you can more accurately determine the car's condition.

Using Carfax

At the beginning of your used car buying process you should sign up with Carfax to get its two-month unlimited car reports service. Every time you get a line on a used car you might want to buy, run the vehicle identification number through Carfax. This will tell you if there is a salvage title on the car, whether there are any recalls in effect and warn you if the mileage on the odometer is suspicious. This is a small cost that could save you tons of money in the long run.