Setting A Budget: If you plan to finance your used car, ensure that your car payment is not over 20% of your take-home pay. You’ll also need to account for maintenance, fuel, and insurance.
Targets: Once you know your budget, build a list of cars that fit it. Go for vehicles known for reliability. If you have the budget, consider a Certified Pre-Owned (CPO) car. They’re less than five years old and usually in great condition.
Price: Do your research online and check what the average price for your target list is. There are sites like Kelley Blue Book and Edmunds that will help. Also, check used car sections of new car dealerships.
Locate Cars: Start by searching online for used cars. Use the site’s filters to set the maximum miles, price, features, and dealer distance from you.
History: Once you locate cars you like, order their Vehicle History Report with their license plate number and VIN. AutoCheck is a great place for the reports. You will know whether the odometer was rolled back, if it’s been in an accident, if it has a salvage title and other vital details.
First Contact: Once you narrow down your search to about three cars, call the sellers and speak to them over the phone. Ask them all the questions you want about the vehicle and gauge if the sale and the car’s details match with the Vehicle History Report. If all seems well, schedule a test-drive during daylight hours.
Test-Drive: Give yourself plenty of time to examine every inch of the car. On the test-drive, replicate the conditions the car would go through if it were yours. Don’t be in a hurry. If you buy this car, it will be with you for years, so ensure that everything is to your satisfaction.
Inspection: Hire a mechanic to inspect the car and give you a written report about its condition. You’ll know whether to proceed or reject the vehicle after this.
Negotiate: Once you have all the details, negotiate a fair price for the car with all you’ve learned.
Paperwork: Finalize a price, and before driving away, ensure that the financing is complete, and the title and registration have been transferred to you.