1. Research your prospective used car.
The used-car market is like a huge haystack, and while it may seem tough to find that needle, a bit of online research can help things considerably. First, go to BuyatCrown.com . From here, you can either input the car you want, or scroll to the "Select a Make" section and click on an automaker you are interested in. You'll then get a list of cars to choose from, sorted by model year. Click on any given year and you will see a model review (if there is one available). Read the reviews from different model years to understand any significant changes that have occurred.
The used-car market is like a huge haystack, and while it may seem tough to find that needle, a bit of online research can help things considerably. First, go to BuyatCrown.com . From here, you can either input the car you want, or scroll to the "Select a Make" section and click on an automaker you are interested in. You'll then get a list of cars to choose from, sorted by model year. Click on any given year and you will see a model review (if there is one available). Read the reviews from different model years to understand any significant changes that have occurred.
The next thing to do is get an idea of maintenance costs on any car you're considering. Proper maintenance is especially important on a used car, since it may not have a warranty to protect it if anything breaks down. People buy used cars as a way to save money, but often overlook the cost of maintenance, which might end up pushing them beyond the limits of their budget.
2. Figure out where to shop for your used car.
There are a number of places to purchase a used car. Crown Auto Sales and Finance offers no-haggle pricing and cars that are in good condition, but its prices are a bit higher than you'll find elsewhere. Private-party sellers have lower prices and can be negotiated with more easily, but the burden is on the buyer to get the car inspected. Some dealers sell certified pre-owned cars that are in excellent condition and backed by factory warranties. This will appeal to buyers who want to minimize the risks of buying a used car — and are willing to pay extra for it. Independent used-car lots are another option, but can vary wildly on price and the condition level of their cars.
There are a number of places to purchase a used car. Crown Auto Sales and Finance offers no-haggle pricing and cars that are in good condition, but its prices are a bit higher than you'll find elsewhere. Private-party sellers have lower prices and can be negotiated with more easily, but the burden is on the buyer to get the car inspected. Some dealers sell certified pre-owned cars that are in excellent condition and backed by factory warranties. This will appeal to buyers who want to minimize the risks of buying a used car — and are willing to pay extra for it. Independent used-car lots are another option, but can vary wildly on price and the condition level of their cars.
The inventory tool has used car listings at participating dealerships. If you want to browse private-party listings, you can go to sites like CarLotFinance.com .
3. Test-drive and inspect the vehicle.
Once you've narrowed the field down to a couple of candidates, it's very important to thoroughly check out their condition and take them for a test-drive.
Once you've narrowed the field down to a couple of candidates, it's very important to thoroughly check out their condition and take them for a test-drive.
A thorough vehicle inspection can shed light on potential problems or tell you whether the car has been in an accident. Don't hesitate to bring your mechanic to see the car, or to request a mobile inspection. Take the car for a spin to listen for any unusual noises and to see if you like the way it drives. If you are an audiophile, now is also the time to test-drive the audio system.
A vehicle history report from such services as Carfax and AutoCheck or the National Motor Vehicle Title Information System is worth the money and could help tip the scales in favor of one car over another.
4. Get your financing in order.
Once you have found the car you want, you'll want to move fast so it isn't sold out from under you. If you're paying cash, there is little else to do except withdraw the funds or get a cashier's check when it's time to do the deal.
Once you have found the car you want, you'll want to move fast so it isn't sold out from under you. If you're paying cash, there is little else to do except withdraw the funds or get a cashier's check when it's time to do the deal.
If you are financing the vehicle, it is a good idea to get pre-approved for a loan. This way, you'll know your purchasing budget and the interest rate for which you will qualify. Some lenders won't offer an auto loan if the vehicle is past a certain age. In this case, your next move might be to apply for a personal loan. Just be aware that those interest rates are typically higher than for auto loans.
5. Negotiate and close the deal.
Don't stress out over a little bit of haggling. If you've done your homework on the car, you will be in an excellent position to negotiate. You should be able to determine a fair price for the car you've settled on by appraising the vehicle and getting its True Market Value (TMV®). Make sure you input the correct miles and choose the applicable options. The tool will show you what you can expect to pay for the vehicle, depending on whether the seller is a private party or a dealership. You'll also get the car's estimated trade-in value.
Don't stress out over a little bit of haggling. If you've done your homework on the car, you will be in an excellent position to negotiate. You should be able to determine a fair price for the car you've settled on by appraising the vehicle and getting its True Market Value (TMV®). Make sure you input the correct miles and choose the applicable options. The tool will show you what you can expect to pay for the vehicle, depending on whether the seller is a private party or a dealership. You'll also get the car's estimated trade-in value.
Keep in mind that TMV is an average. You may end up above or below the price, but as long as you get reasonably close, you've paid a fair price. Also, know that the margins for used cars are greater than for new cars at dealerships. Don't be afraid to make a more aggressive offer than you would if you were shopping for a new car.
Most private sellers aren't as experienced in negotiating as a dealer would be. Use this to your advantage and make a fair but aggressive offer. If the seller turns it down, be persistent and counter with a slightly higher amount.
When the time comes to complete the sale, there are a few important items to take care of. Have the seller get a smog test for the car, if it is required by your state. Check the registration to ensure it is current. Make sure the seller gives you the title (also called a "pink slip"). If the owner still owes money on the vehicle, you may have to contact his bank or credit union to complete the transfer of ownership. Some states require the seller and buyer to complete a bill of sale. This document is good to have in case you are pulled over and haven't yet registered the vehicle.
