Brief Guide to Buying a Used Vehicle
One of the first things to consider when looking for a used car is whether you want to buy from a dealer or a private seller. While you can certainly investigate options from both, you should be aware of whether you are happy to go the private route should you find a car that you like. It is a more involved process, so you should know that going in.
The good thing about buying private is you can typically get better deals, and it’s nice in my opinion to work with an individual vs. the salespeople at dealerships. You will have to handle some paperwork and be more vigilent though.
Should you go the private route, you should most definitely opt for a pre-purchase inspection before committing to the vehicle to ensure that you’re not missing some key issues. Even cars that appear to run great and look smooth can have hidden engine codes that were recently reset, or frame damage that has been repaired. An inspection gives you additional confidence in your purchase.
Inspections
An inspection is still recommended if you buy from a dealer because even though they will do their own, it’s always good to have someone in your corner giving feedback. They won’t be incentivized as much to give you the full truth if they found something amiss. Depending on your vehicle choice, you may need to be extra vigilent. Foreign cars often require special handling and can have very specific issues so best to take those to a specialty shop to fully cover yourself. A quick search for euroshops or import shops should do the trick.
Have a Plan
When shopping for your favorite options, make sure to come equipped with a buying checklist just to make sure you don’t forget a step and end up making a bad decision. Especially at the dealers, they will try their best to move your budget up bit by bit using financing, upsells, warrantees, etc. That’s why it’s best to set a plan early on and stick to it. Don’t let people drive you in a direction you didn’t choose.
Negotiate
The auto industry is built around negotiation and tactical buying so if you use a traditional dealer or private seller, expect to get your game face on. A few outlets like Carmax really are no negotiation, which can be less stressful but also does not always lend itself to the best deal.
When buying, always keep an eye on aspects you can use to lower the price, and don’t be overly excited to sign the papers. Dealers especially will be strategic in their choices by offering slightly off the top but then giving you a higher interest rate or upselling you with unnecessary options. If you buy towards the end of the year, you may have more leverage with dealers trying to hit their numbers.
Ultimately there is no full proof way to negotiate, but always be ready to walk away if necessary.
Financing
When it comes time to purchase, make sure to keep the loan term as short as humanly possible. Remember, vehicles lose value quickly so a 7 year loan will be upside down almost the entire length of the loan (you will owe money if you sell the vehicle). A good rule of thumb is if you can’t afford the vehicle with a 3-year loan, it’s too expensive for you.
