OWN AUTO

Buying a Used Car

If you've decided to buy a used car, you've already made a smart decision. You can get a car that's almost as good as a brand-new one, without suffering the depreciation that wallops new car buyers as soon as they drive the car off the lot. Used cars - even those that are only one year old - are 20 to 30 percent cheaper than new cars. But there are other good reasons to buy a used car:

Locating the right used car

At the beginning of the car-buying process, many people already have in mind the car they want. But it's a good idea to stop right now and ask yourself: Will this car fit into my monthly budget? We'll explain how to determine what car you can afford in the next step. For now, make sure your choice isn't obviously exceeding your budget. Does it meet my current driving needs? For more on this subject, refer to 10 Steps to Finding the Right Car.

Used car bargains

The cost of a used car is based on its condition, mileage, reliability, performance and popularity. Of course, you want a car that is reliable and performs well. But do you want the same used car everyone else wants? If so, you will pay a premium for it. In some cases, the only difference is the nameplate.

Research your prospective used car

You will find all the information you need to make an informed decision about what to buy on the Edmunds.com used car pages. The major topics are accessed by clicking the links to the left of the screen that list such information as: prices, standard features, specs and safety, warranties, consumer discussions, photos and video and resale values. A helpful feature is "Car Ratings" which includes a bar graph representing consumer satisfaction with this vehicle. You can also read reviews of the car by current owners.

How much can you afford

The smart shopper will consider how to finance the car at the beginning of the shopping process. This will avoid unpleasant surprises later in the game and help you make an unemotional decision that fits your budget.

Set up financing for your used car

Financing through a bank, on-line lender or credit union.Financing through the dealer. This can work for some people depending on their credit scores and the current interest rates offered.Financing through an independent source (on-line lender, bank or credit union) offers several advantages.

Used car markets

The three most common places to buy a used car are: Private parties New car dealerships Used car lots Of these sources, private parties usually have the most reasonable prices. It is also a more relaxed transaction to buy a used car from a private party rather than to face a salesman at a dealership.

Test driving a used car

Used car shopping will involve inspecting the vehicle to determine its condition. This process is simplified if you buy a certified used car that has passed a thorough inspection and is backed by a manufacturer's warranty. But while buying a certified used car removes a lot of the guesswork about the vehicle's mechanical condition, you pay for this service.

Negotiating for a used car

in hand (or financing arranged) to make a deal on the spot. Preface your offer with a statement like, "I'm ready to make a deal now. I can give you cash (or a cashier's check) now. But we need to talk about the price." At this point, you need to have a persuasive argument about why the price is too high. So let's talk about pricing. The foundation of successful negotiation is information. This is particularly true when buying a used car. And yet, the condition of used cars means prices will vary widely.

Closing the deal of used car

If you are at a dealership, you still have to go through the finance and insurance (F&I) process. If you are buying a car from a private party, you have to make sure that payment is made and the title and registration are properly transferred. In both cases, you also need to make sure you have insurance for the car you just bought before you drive it away. Also, the F&I person will probably try to sell you a number of additional items: an extended warranty, alarms or anti-theft services such as LoJack, prepaid service plans, fabric protection, rust proofing and emergency roadside kits. Some people swear by extended warranties, so this is something you might want to consider (unless your used car is certified or still under the manufacturer's warranty). However, the other items typically sold in the F&I room are expensive and hold little value for you.