Tips on Buying a Used Vehicle

Buying a used vehicle can save you a substantial amount of money since the moment a new car is driven off the lot, the value of the car drops by several thousand dollars, according to Car Search. After three years, a car is only worth 60 to 70 percent of what was paid for it new. Although buying a used car makes economic sense, if you do not go about it in the right way, you risk problems such as having to repair damage you did not see and suffering from a bad deal from an unscrupulous car dealer. Take the right approach and your pocketbook will profit while you enjoy your vehicle.

Planning

Before looking for cars, decide on the price range you will pay. Include an estimate of financing costs in your calculation. If you have a certain model in mind, research the model online to make sure there have been no problems with it such as recalls from the manufacturer. Check on mileage efficiency, since the cost of gasoline is another consideration.

Private Seller

Look for individuals selling used cars directly. A private seller wants to sell the car quickly since he advertised the car directly, according to the site Autos. Private sellers may give you a lower price than used car dealers who must mark up the cars to make a profit. A private seller also knows more about the history of his car than a used car dealer moving hundreds of cars each month. Look for private sellers in newspaper ads, at classified ad sites like Craigslist or on any local classified advertising site.

Dealer Negotiation

If you are buying your car from a used car dealer, check on the dealer's reputation with consumer reporting agencies. When the salesman asks the price range you are willing to pay, do not share the highest price, so that you leave room for negotiation.

Shop Around

Speak with several dealers and sellers, and let them know you are looking elsewhere. Checking multiple places will give you a better understanding of the market and what you can expect to pay.

Vehicle History Report

Before buying any used vehicle, get the vehicle identification number (VIN) for the car and obtain a vehicle history report. A vehicle history report contains a record of accidents, some that may be hidden from normal view when inspecting a car.