This post is from our regular contributor, Erin.
Don’t you just love going through the process of buying a used car?
If you’re anything like me, probably not.
It can often be overwhelming and time-consuming, especially when you’re trying to research the number of options out there.
Be that as it may, buying a used car is quite often a better deal. New cars depreciate a ton as soon as you drive them off the lot – is it really worth paying an extra few thousand to have that “new car smell”?
It wasn’t to me.
I actually just went through the process, and if you’re lucky enough to have been spared from it (for now), here are 5 things you should know ahead of time so you can prepare.
1) You Must Negotiate and Have a Price in Mind
Please do your research beforehand and know what price the car you’re looking at has sold for recently. You need to have a realistic budget in mind, and knowing what you want to pay helps during negotiation. Also, knowing how you’re going to pay is good, too.
How much can you afford to put down, and will you finance or pay cash? Financing can sometimes be a good deal – there are a number of factors to take into consideration.
Having time on your side also helps. The ability to walk out on a deal can’t be valued enough. We walked away from the two dealerships we visited because we didn’t need the car right then and there, and both times, they came running after us with lower prices.
I almost wish I was kidding as it was a bit comical, but you want to have the upper-hand here. I held firm to what I wanted to pay, and eventually, we met in the middle (mostly leaning toward our favor).
Do not give into pressure. A sales manager basically lambasted me for passing up his “amazing” deal. I’ll decide what’s amazing, thank you very much. I’m not handing my money over to someone who’s rude and has a rotten attitude.
2) It’s a Waiting Game
Most dealerships love playing the waiting game as they want to wear you down to the point where you’ll accept whatever they give you. Know this going in so you can prepare by getting into the right mindset.
I’m not a patient person at all, and I don’t like waiting or beating around the bush, especially when it comes to transactions like this. I was upfront and honest to save us as much time as possible. There’s no point in playing the waiting game with them. The sooner you work out pricing, the sooner you can move on and compare your other options.
Of course, talk the deal over with your partner if you’re there together and need to reach a decision, but don’t be afraid to walk out and tell the salesperson you’ll get back to them.
Also, whatever you do – don’t break! If you’re buying a car alone, bring someone else with you so you’re not sitting there twiddling your thumbs. You’ll be thankful for the company.
3) Compare the Warranties
Not all manufacturers offer the same warranties, and when you’re buying a used car, you want the best that’s available for more peace of mind. Often times, certified pre-owned vehicles come with better warranties at no extra charge, and you may be able to add on other coverage as you see fit.
Don’t be afraid to go over the warranty in detail, either. When we were buying our car, I felt like a million things were being thrown at us at once (there’s more than one type of warranty, and each covers something different). I’m sure salespeople try and overwhelm you so you automatically go with whatever they’re suggesting, but think long and hard about your options, the supposed value you’re getting, and how much extra you want to pay per month.
4) What Extras Do You Get?
Our dealership actually offered its own separate package when we purchased our car. We’re entitled to free lifetime oil and filter changes and state inspections, and the car’s engine is guaranteed for life.
They also threw in parts and services, which means we can take the car there for a cleaning whenever we want to. Oh, and they offer free manicures on Wednesdays (hey, might as well take advantage, right?).
Again, not all dealerships are equal, and some perks may be worth more to you. Something else to think about – the location of the dealership. Ours is down the road from us, which is really convenient in case we need to take it to get serviced.
5) Plan to Properly Care For Your New Used Car
If there’s one thing I’ve been guilty of with my older car, it’s not taking the initiative with preventative maintenance. Using products like Bar’s Leaks to stop a leak can be quick and easy maintenance. Additionally using a proven product like Rislone Complete Fuel System Treatment every 5,000 miles can make a big difference over the life of a vehicle.
All cars need to be cared for, even those that are just a few years old. You want to ensure your car has a happy and healthy life, and the best way to do that is to create a plan to care for it.
Consult your new driver’s manual (or use google) and find out what’s recommended for your car. Consider when you need to get regular oil changes, check fluid levels, get a tuneup, check your tire pressure, or replace the brake pads.
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Buying a car doesn’t have to be an arduous process as long as you have realistic expectations beforehand. Being one step ahead of the game ensures you come out ahead in the final round.
Have you gone through the car-buying process recently? Any lessons you can share with us?
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I haven’t bought a used car on my own before but I am potentially going to in the not-too-distant future so these tips are super helpful. Thanks!
Our most recent car purchase was from a used dealership, and we felt really confident because they showed us the Car Facts, title, and more prior to purchase. We got the price at exactly Kelly Blue Book, which doesn’t show great negotiating power, but we also had to borrow my parents car to get to the dealership (our car was totaled, and we went from being a 1 car fam to a zero car fam).
If you’re buying from a private party, I recommend that you take the car to a trusted mechanic for an inspection prior to purchase. Then you can know if you’re coming into a vehicle that needs a complete overhaul or an oil change.
I’ve only had used cars and going through the warranty is a big one for me. It’s not fun but it’s something you need to do so you know where you stand because there WILL be repairs in the future no matter what types of car you get due to general wear and tear after you drive it for a while.
Regarding buying used cars, I like
Craigslist or private sellers on AutoTrader vs. the dealership. I have
heard people say they are scared of Craigslist or private
sellers but if you have cash, there are more deals to be had there
than at the dealerships! Just do the research, be prepared, have someone
knowledgeable check out the car, and if it doesn’t feel right, trust your
instincts and walk away! Oh, and take care of the title transfer at the
DMV.
I’ve never bought a car in the past since I live in a city but am thinking about it now. I would definitely go used instead of new. It just makes sense, unless you think of a car as a status symbol. Thanks for these tips!
I’ve never needed a car enough to buy one. But I think the time is approaching when I would start needing one. It’s getting really inconvenient now that I’m in a city that has a horrible public transportation system. These tips should come in handy when that day comes :)
Ali_AnythingYouWant Glad to hear that! It’s definitely not the most fun process, but it’s much easier when you know what to expect.
Hannah UnplannedFinance That’s great! I tried to do a little research on the dealerships around here before making a purchase. We had a few recommendations from my fiance’s coworkers which was nice. Definitely agree to get the car checked out beforehand!
Chonce Yep, very true. The warranty was what tripped us up the most because we just prefer to self-insure with an emergency fund, but it wasn’t too much more per month, and the peace of mind is worth it.
Mrs Crackin the Whip I purchased my car off of Craigslist and I do think there’s something to be said for having the cash on hand. Most private sellers just want the car out of their possession, although some can get attached and think their car is worth more than it actually is. Research is key!
SavvyWithSaving There really isn’t an amazing reason to buy new, unless you’re getting a great deal with interest rates and rebates. There are some decent promotions out there, and buying new will sometimes come out to around the same as buying a slightly older car. However, when we compared insurance prices, there was a huge difference there.
Anum Glad to hear that! Being inconvenienced by public transportation is the worst. Whenever I don’t have a car, I’m quickly reminded how much I like having the option to go anywhere I want, when I want. It’s one of those things you take for granted.