First, older models may have features that are not available anymore in newer models. For example, many automobile manufacturers chose to discontinue the production of manual transmissions in favor of the automatic, but many car enthusiasts still consider the stick shift superior. Designs also change over time, and the famed classic vehicles of times past will always remain loved.
Perhaps even more importantly, purchasing used vehicles will often be the more economical choice over new models. Depreciation—the decrease in the price of cars after purchase—has always been the absolute bane of car owners. However, buying used vehicles means that you will be on the benefiting side of the price game.
These are just two of the countless reasons why someone like you may want to purchase used cars. This guide will walk you through how to use your money safely and efficiently to find the best deals available.
Step 1: Consider Your Budget and How You Intend to Spend It
The first and most important step is to analyze your budget and plan how you will spend it. Will you make your purchase in cash or with installment payments over the course of 24 months? Purchasing in cash rather than taking out a loan means you will pay less overall and face smoother procedures when selling. Just bear in mind that some car dealers would prefer you finance your purchase through them because the interest will lead to their benefits. Therefore, don’t be upfront about how you will pay; stay ambiguous and weigh your options. If you pay in cash, make sure to use bank accounts that provide cashier’s checks.
Furthermore, trading in your current car can provide extra funds, so make sure to cross-check between traders and dealers to get the best price.
Also, don’t forget that the real expenses come after the acquisition: fuel costs, maintenance, insurance, and even potential repairs. While it’s hard to estimate exact amounts, take broad estimates. As you finalize your specifications, revisit your numbers to close any gaps. This, in turn, will guide you to the price range for your targets.
Step 2: Analyze Your Preferences in Vehicle Types and Features
What car suits you best? Are you expecting a new family member? Is your current truck too large for your needs? Understanding what you can do without and what you absolutely need makes all the difference.
Consider your lifestyle and how you’ll use your new car. If you often take long rides, cruise control and fatigue detection are essential. Live in a cold region? Heated seats and snow mode could be lifesavers.
Additionally, think about what powers your car. Electric vehicles (EVs) and plug-in hybrids are becoming increasingly common. If you can afford the installation of a home charging station, these options might be for you.
Step 3: Focus and Selection
Take your input from previous steps and search online for vehicles that fit your description. Used car dealers often offer a variety of brands, so visit their lots to gain insights about the models and features you want.
If you’re looking for inspiration, check out “10Best Cars,” “10Best Trucks and SUVs,” or “Editors’ Choice” lists for past models that combine quality and affordability.
Step 4: Decide Who You Will Buy From
Prices and options differ significantly based on the seller. Mega dealers often sell certified pre-owned (CPO) vehicles with added warranties and inspections, although these tend to cost more. Private parties may offer lower prices but require extra diligence on your part.
Platforms like Craigslist and Facebook Marketplace are useful for finding deals if you’re willing to do extra legwork.
Step 5: Shop for the Best Cars at the Right Price
Use large websites with cross-searching capabilities for dealers and private sellers. Filter by price, trim, features, and even vehicle color.
For cold-region buyers, consider vehicles from areas without harsh winters. Keep in mind that mileage and condition greatly affect pricing. Check the car’s interior to gauge how it was treated by the previous owner.
Step 6: Conduct Research on Your Candidate Vehicles
Ask dealers for vehicle history reports, which are often provided free of charge. If you buy from a private seller, ensure you obtain the Vehicle Identification Number (VIN) and use it to check for repairs or issues.
Inspect photos of the car for signs of damage, like odd shapes or colors in the body or misaligned badges.
Step 7: Test Drives
Schedule test drives for multiple candidate vehicles. Plan your course to include turns, highways, and low-speed roads. Bring someone for a second opinion.
Step 8: Review the Deal
Review your budget and confirm the final price. Negotiate for extras, such as additional keys or winter tires, and carefully read the contract.
Step 9: Get to Know Your New Car
Take time to familiarize yourself with your new car. Manufacturers often provide online videos or manuals to help you understand its features.
Celebrate your accomplishment! You’ve successfully navigated a complex process to find a vehicle that suits your needs and budget.