10 Steps After Just Purchasing A Used Car

10 things you need to know before buying a used car
If you're looking to buy a used car, you're far from alone. Between private-party and
dealership sales, nearly 40 million used vehicles change hands each year.
With so many choices, finding that one right car for you can be a challenge. So we've
created a list of steps to help make finding and buying your perfect used car a breeze.
1. How Much Car Can You Afford?

2. Build a Target List of Used Vehicles
3. Check Prices
4. Locate Used Cars for Sale in Your Area
5. Check the Vehicle History Report
6. Contact the Seller
7. Test-Drive the Car
8. Have the Car Inspected
9. Negotiate a Good Deal
10. Get the Paperwork Done
You can find good used cars in a variety of places, such as private-party sellers, new-car
dealerships and used-car superstores.
1: How Much Car Can You Afford?

A rule of thumb: If you're taking out a loan to pay for your car, your car payment
shouldn't be more than 20% of your take-home pay. If you're sticking to a tight budget,
you may want to spend even less. Used cars will need a little extra attention from time to
time: new tires, maintenance and the like. And then there are the other ownership costs
shoppers sometimes forget to account for, such as fuel and insurance.
If the car you're planning to buy is out of warranty, it might be a good idea to set
aside a "just-in-case" fund to cover any unexpected repairs.
2: Build a Target List of Used Vehicles

It's no secret that the Honda Accord and the Toyota Camry make for good used cars. But
they might cost a few thousand more than a comparable Ford Fusion or Kia Optima, even
though these are good cars too. So if you're looking to save money, consider more than
one brand. We suggest making a list of three cars that meet your needs and fall within
your budget. Edmunds reviews have great information to guide your choices.
If you're planning to buy a vehicle that is less than 5 years old, consider one
that's certified pre-owned (CPO). CPO vehicles have long-term warranties that are backed
by the carmaker, not just the dealership selling it to you. Franchised dealerships that sell
that same brand new are the only ones who can sell a CPO car of the same brand. So if
you wanted a CPO Chevy Cruze, for example, you'd need to buy it from a Chevy dealer.
3: Check Prices
Prices are driven in part by where you're shopping. You'll find used cars in used car
sections of new car dealerships, independent used car lots, used car retailers such
as CarMax, and websites where private-party sellers list their cars. Of the four,
private-party cars will typically have the lowest selling price. CPO cars will usually
cost the most, but for the reasons we've noted. To see what other people are paying
for the models you've picked out, Edmunds offers a quick way to see the average
price paid for the car in your area.
4: Locate Used Cars for Sale in Your Area

One easy place to start building your target list is the Edmunds used car
inventory page. To find exactly the car you want, you can filter your search by many
factors, including the miles on the car's odometer, its price and features, and dealer's
distance from you. Use the websites for other used-car marketplaces mentioned to
save time.
5: Check the Vehicle History Report

Unless you're buying the car from a close friend or family member who can vouch for
its history, plan to get a vehicle history report. This early step is essential. If the car
you're looking at has a bad history report, the sooner you know the better.
AutoCheck and is the best-known source for vehicle history reports. These reports
can reveal vital information about the car, including whether the odometer has been
rolled back or if it has a salvage title, which means it has been declared a total loss
by the insurance company. You'll use the car's vehicle identification number (VIN) to
get this information, and in some cases, all you need is the license plate number.
Most major dealers offer these reports for free if they have the vehicle in their
inventory.
6: Contact the Seller

Once you find a good prospective car, don't run out to see it. Call the seller first. This
step is an excellent way to establish a relationship with the seller and verify the
information about the car. You can ask private-party sellers why they're parting with a
car or whether it has any mechanical problems. And if you're buying from a dealer, a
phone call or text is the best way to ensure the car is still in stock.
Sometimes the seller will mention something that wasn't in the ad that might change
your decision to buy the car. If you want to go deeper, our used car questionnaire is a
good reminder of what to ask. You will notice that the last question on our list is the
asking price of the car. Although many are tempted to negotiate even before laying
eyes on the car, it's better to wait. Once you see it, you can tie your offer to its
condition.
If things are going well, set up an appointment to test-drive the car. If possible, make
it for daylight hours. That makes it easier to see the car's condition.
7: Test-Drive the Car

Test-driving a used car is the best way to know if this is the right car make and model
for you. It's also a good way to assess this particular car's condition. So tune out
distractions and focus on the car. Here are some things to check:
 Is it easy to get in and out of the car without stooping or banging your head?
 Is there enough headroom, hiproom and legroom? Remember to check the
space in the back seat too.
 Is the driving position comfortable? Do you sit too low, too high or just right in
the car? Can you tilt or telescope the steering wheel for a better fit?
 Are the seats comfortable? Are they easily adjustable? Is there a lumbar
support adjustment for the driver? How about the front-seat passenger?
 Is the check engine light on? If so, get that problem checked out before buying.
 How is the visibility? Check the rearview mirror and the side mirrors. Look for
potential blind spots.
 Use your nose. Do you smell gas, burning oil or anything amiss?
 Check out the tires. How old are they? Is there enough tread left?
 How are the brakes? Are they doing the job of stopping the car? Do they
squeak?
 Pop the hood. You don't have to know a lot about cars to see if something looks
wrong. If something is leaking, steaming or covered in oil, it's time to ask
questions.
 Does the air conditioning blow cold? Do headlights, brake lights and turn
indicators work? Test them to be sure.
After the test drive, ask the owner or dealer if you can see the service records. These
will show you if the car has had the scheduled maintenance performed on time.
8: Have the Car Inspected

If you like the car, consider having a mechanic inspect it before you buy it. If you
don't have a mechanic, Google and Yelp are good places to read local shops'
reviews. A prepurchase inspection costs $100-$200 and can alert you to problems
you may not find yourself. It's a smart investment.
A private-party seller will probably allow you to do this without much resistance. Most
dealerships will let you borrow a car for an outside mechanic to inspect. You'll be
paying for this, of course. If it is a CPO car, there's already been an inspection and
the car has a warranty, so there is little reason to take it to an independent mechanic.
9: Negotiate a Good Deal

Does the idea of "talking numbers" fill you with dread? It shouldn't. Negotiating
doesn't have to be a drawn-out, traumatic experience. If you are reasonable and
have a plan, chances are you can make a deal pretty quickly and easily:
 Decide ahead of time how much you're willing to spend to get the car. But don't
start with this number in your discussion.
 Make an opening offer that is lower than your maximum price, but in the
ballpark based on your average price paid research in Step 3. Explain that
you've done your research on Edmunds or wherever else, so you have facts to
support your offer.
 If you and the seller arrive at a price that sounds good to you and is near the
average price paid, you're probably in good shape.
 And remember, the people on the other side probably dislike negotiating too —
even if it's their job.
10: Get the Paperwork Done

If you are at a dealership, you'll sign the contract in the finance and insurance office.
There, you will likely be offered additional items such as a warranty, anti-theft
devices, prepaid service plans or fabric protection.
Some people want the peace of mind that comes with extended warranties, so this is
something you might want to consider unless the car is still under the manufacturer's
warranty or is a CPO vehicle. Review the dealership sales contract thoroughly. In
most states, it lists the cost of the vehicle, a documentation fee, possibly a small
charge for a smog certificate, sales tax and license fees.
If you are buying a car from an individual owner, make sure the seller properly
transfers the title and registration to you. It's important to close the deal correctly to
avoid after-sale hassles. Before money changes hands, ask for the title (which is
sometimes called the pink slip) and have the seller sign it over to you. Rules
governing vehicle registration and licensing vary from state to state. If possible, check
with your local department of motor vehicles to make sure there are no past-due
registration fees you'd be responsible for should you buy the car. Whether you buy
from a dealer or a private party, make sure you have insurance for the car before you
drive it away

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10 things you need to know before buying a used car

1. How Much Car Can You Afford?

1: How Much Car Can You Afford?

2: Build a Target List of Used Vehicles

4: Locate Used Cars for Sale in Your Area

5: Check the Vehicle History Report

6: Contact the Seller

7: Test-Drive the Car

8: Have the Car Inspected

9: Negotiate a Good Deal

10: Get the Paperwork Done

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