Your 10-Step Used Car Buying Guide

Buying a used car can be tricky. And, that’s why we’ve put down a simple 10-step guide to make the process a little easier. Take a look.

Understand Your Budget

If you’re financing the car, your total monthly expenses should not exceed 20% of your take-home pay. This includes your EMI, insurance, taxes, fuel, and maintenance.

Make a List

Build a list of used cars according to your needs, not wants. Look for models known to be reliable like Honda Accords or Toyota Camrys. They may cost more, but you’ll save on maintenance.

Check Prices

Check all online listings set by dealerships, private parties, and CPO car dealerships. You’ll get a good idea about how much the cars you’re looking at cost.

Find Cars Nearby

Filter your search by as many factors you want like miles driven, price, features, distance from you, etc. Don’t go far away to look for a used car unless you’re collecting rare models.

Check History Reports

Once you see options you like, order their vehicle history reports using their VIN or license plate numbers. Major dealers may give the report for free, but it’s worth paying for to see how the car was treated by its previous owner.

Contact Sellers

Call the seller when you find a good option. Verify all the information you’ve collected. Ask why it’s being sold, whether it has mechanical issues, etc.

Test-Drive

Once you have three potential cars, schedule back-to-back test drives for easy comparison. Take your time with each vehicle. Examine all interior, mechanical, and exterior details. Check smells, noises, infotainment systems, comfort, driving position, cargo area, space, etc.

Inspect

If you like the car, hire a mechanic to inspect the vehicle professionally and submit a written report to you. They will help make or break the deal. If they greenlight the car, you’ll get negotiation points.

Negotiate

Use all the information collected to negotiate a fair price. Never stretch your budget. Walk away if the seller is unreasonable. Be patient. There are always other options.

Close

Take your time with the paperwork once the price inclusive of taxes and fees is agreed upon. Finalize all financing and contracts before driving away with the car.