How Do You Buy Good Used Cars?
Did you know that the top-selling car in the U.S. for 2020 so far would be the Ford F-Series? According to caranddriver.com, Ford F-Series has 367,387 units sold, far more than the Chevrolet Silverado (264,442 units sold) and Ram Pickup (246,253 units sold). We all want to have the best car for ourselves. The best car which is suitable for our everyday needs, fits our persona and which is just about right for our budget. There are so many things to consider in buying used cars, as we want to make sure it is all worth it. In this day and age, it is easier for us to do some research on what type of car should we buy, what features we need to look into and if there are some discounts, promos we can benefit from. With the help of technology, we can view a wide selection of cars over the internet and carefully select which car is the right one for us. But how do we know which ones to buy? How do we know if we have chosen the right one? Or the best question would be, how to buy good used cars?
Know Your Budget
If you are new to buying a used car, you may probably be googling about “buying a used car for dummies.” Well, we are here to help! The first thing to plan is knowing your budget. It will help you consider what make, model, or year of the car you will be buying. Older cars are more affordable than newer models, but they can also be prone to more repairs. In planning your budget, you will also need to think about the cost of registration, sales tax, repairs, and of course, insurance. You will need to find a policy plan that you can afford and will cover all your needs. You do not need to spend all your savings on buying a used car, you may also want to consider saving for the car’s maintenance, and future repairs. Make sure to spend on what you can afford. Nerdwallet recommends, to spend not more than 10% of your earnings on your monthly auto loan payment. It is also good to be practical in choosing your payment terms. For used cars, it is suggested to have a maximum loan term of 36 months and 60 months for buying a brand-new. Choosing a longer payment term can help lower your monthly payment, though, will let you pay more interest over time. If you are loaning a car, you will also need to give some thought to your credit score. It will determine your annual percentage rate (APR) on the loan. It is said that new car loans tend to have a lower annual percentage rate. You can use a Car Affordability Calculator to give you an idea of how much you can spend in buying a car.
Car Financing
If you need financing assistance, you can opt-in for a car loan. You can talk to local banks or credit unions and check their offers before choosing the best car loan that fits your budget needs. Some lenders have special pricing structures for first time buyers, current customers, or those who have a low credit score. There are many car financing options to choose from. A national bank, for example, has several auto-lending options though they have a high-interest rate. Credit unions, need you to be a member to avail of their financing services. They often give high savings interest rates and low loan interest rates for their members. Community banks are willing to assist customers who may need special lending options or damaged credit scores. Financing companies can also help customers who have a poor credit score. Most automakers have their own financing companies. Car dealerships often act as a broker for the lending companies. They profit a percentage by marking upon the interest rate. Lastly, Online banks, can approve your loan in the comfort of your home.
Search for the Right Car
A lot of us may be asking, “How to choose the right car?” Choose a car according to your needs and budget. Think about why you need it. Is it for your family? For driving your kids to school? For going to work? Or for traveling most times? You may also think about the car’s safety. Is it durable or reliable? Also, think about the fuel economy that is convenient for you and the vehicle’s performance. Consider the said things then make a list of your must-haves. Then search over the Internet for a car, SUV, pick up, or whichever you prefer that has the features you need. Narrow down the chosen vehicles to your top 3 picks. There are several car finders available online, like Kelley Blue Book, Edmunds, etc.
Certified Pre-Owned Cars
Are you aware of certified used cars? These are the cars that have been certified, thoroughly inspected, and refurbished. Certified Pre-Owned (CPO) Cars usually have a warranty extension from the manufacturer. These cars are automaker-certified. They often have special perks, which may include, roadside assistance, trip interruption coverage, low-interest rates, and good-warranty protection. But how will you know if a Certified Pre-Owned Car is legit? These cars can only be found on the automaker’s franchised dealer lots. The vehicle should be inspected following the manufacturer’s standards, has a stamp of approval and warranty. CPO cars are usually priced high compared to the other non-factory certified vehicles due to their benefits and extended warranties.
Where to Find the Best Used Cars
There are a lot of places and websites where you can find the best used cars. Each dealer or online seller has its pros and cons. They can be different in terms of pricing or services. You should be wary of scams and do background checks on the seller, dealer, or salesmen. You can search for reviews online or you can get feedback from friends and family before engaging to them. If you would like to see the car for yourself, you can go to different car lots and dealerships. If you choose a more convenient route, there are trusted websites where you can find good used cars. Among them are:
Craigslist. It is an advertising website, and sellers can post ads for free. Since anybody can post here, be cautious with scammers.
Carmax. Known as America's largest car retailer. You can visit their website and check their wide inventory of cars. Carmax is a trusted car retailer for years. Their cars are in fixed pricing, and they do not haggle.
Autolist. It is an online search engine for buying cars. You can also pay to list a car if you are selling one.
Autotrader. It is also an online marketplace for selling and buying cars. They sell new, used, and certified second-hand cars from dealers and sellers.
Carvana. Known for their multi-story car vending machines. You can purchase cars online and have it delivered to your doorstep. Same with Carmax, they do not haggle with the price. They also have a wide selection of cars online. You can search for Carvana Reviews to know more about them.
CarGurus. You can visit their website and compare local listings for new and used cars.
Price Look-Up
So you already have a model in mind and cannot wait to check the car for yourself. Before you inspect and test drive the vehicle, check first the pricing, if it's priced appropriately by the seller. You can check this on Kelley Blue Book or NADA pricing guides. You must have an idea of the vehicle’s amount so you can negotiate with the seller or dealer. If you are buying from a car dealer, look for “dealer retail” and if it’s a private seller, look for “private party” pricing. When checking for the price, include the year, make and model, mileage, features, and the car’s condition.
Check Vehicle History Report
One smart move you can do in buying a car is to check its vehicle history report. Before you meet the seller to inspect the vehicle, it is best to know its Vehicle Identification Number or VIN. You may send it to Autocheck or Carfax to get the vehicle's detailed report. Some websites have links to free VIN checkers; if not, it is worth buying one. Obtaining a vehicle’s history report will allow you to see how many times it changed its owner, if it got involved in accidents, if it got flooded or if it has odometer issues. You also need to make sure the car has a clean title. The car's condition may adjust its selling price, and you shall discuss it with the owner. The vehicle history report will help you know the car’s past and may support your decision to buy it or not. Also, check common issues on the model that you are eyeing. You can visit automotive research sites like jdpower.com.
Communicate with the Seller
So you have done your research and have decided to give it a go. If you feel that the selling price is appropriate for the vehicle and you feel that it is the right car for you, maybe now is the time to contact the seller. It is best to make a list of questions so you would not miss out on the important details. You can ask the seller if he is the first owner, what details are not included in the ad, how he came up with the asking price, and if the car title is clear of liens, etc. After your questions have been answered, you can now schedule an appointment with the seller to inspect and test drive the car. You can also ask the seller if you can bring a mechanic to inspect the vehicle.
Inspect and Test Drive
If you are not sure how to inspect a car, you can just observe and test drive it first. Feel how it accelerates and if you can control the steering wheel smoothly. Choose a road that slightly has everything, like hills, rough pavements, curves, or a highway. It is important to check the visibility, meaning there should be no blind spots. Check if the car has enough power to accelerate on high roads. Also, look around inside the vehicle, and see if you can easily reach the gauge or controls. You must also pay attention and listen for unusual noises or vibrations as this may indicate worn tires or car parts. The most important thing of all, check if the breaks are working well. After the test drive, look into other details, such as the seat legroom, the car’s capacity, and even the radio. For an in-depth inspection, you can hire a mechanic to go with you. Please note that Certified Pre-Owned CPO cars do not need a mechanic inspection as it is already inspected thoroughly by the manufacturer.
Negotiate
Let’s just say you really like the car and want to buy it right away. Since you have done your research on how much the car is worth, it’s now time to make some negotiation. Though, you may have fallen in love with the car, set your emotions aside as this is still a business transaction. Your strategy depends on whom you are negotiating with; is it to a private seller or a dealer? Give them an offer based on how much you think the vehicle is worth (of course, this is based on the pricing guides.) If the private party seller does not agree, you can pinpoint some concerns about the car’s condition. Negotiate diplomatically. You can keep on giving him offers until you both agree and meet halfway.
On the other note, be careful when buying from a dealer as they are experts in negotiating and may have some tricks of their own. Car salesmen often convince buyers about the affordable amount they can pay every month rather than the total cost of the car. Do not fall for this and stay focus on the entire cost. Offer them an enticing lower amount. If they do not agree, negotiate slowly, write the numbers down so you will not get confused. Also, be clear about other fees as some salesmen tend to add other fees to gain back what they lost during the negotiation. If things are not going smoothly, you can always walk away and check for other car dealers that may have a good offer.
Sign the Deal
Both you and the seller finally agreed on the sale price, and you are now ready to sign the deal. The seller should provide a bill of sale that lists all the details about the car (VIN, mileage, selling price, and date, etc.), seller’s and buyer’s information like name, address, and of course, your signatures. You and the seller should also sign the title before handing it over to you. The seller usually takes the license plates and registration in most states, but in some cases, it stays with the vehicle, so check with your state DMV about their license plates procedure. You can also check our previous blog, “What Do I Do With My Plates After I Sell My Car?”
You can pay the seller, with your agreed mode of payment, this can be cash or sometimes check. Do not forget to add insurance to your car as it is mostly mandated by different states. Once you have your bill of sale, car title, and the required form to register your vehicle, proceed to your local DMV office and apply for registration. You should prepare a budget for sales tax and registration fees. Some car dealers can charge you for a documentation fee to take care of the paperwork, so do not be surprised. Once you register your vehicle, you will be given a temporary registration sticker that you can use for 30 days. The car registration, new plates, and sticker usually comes in the mail within 30 days. Some DMVs can provide the registration and plates the same day, so check your state DMV website about their registration procedures.
We Buy Running Cars
Do you need to sell your car fast? We can make that happen! “Sell My Car in Chicago with Enrique for Cash” is one of the high paying car buyers in Chicago. There are only a few simple steps you need to follow in selling your car:
GET QUOTE. You just need to call us at (224) 236-7010 or sell a car online to get a free quote. We will then reach out to you and give you an offer. If you agree, we will schedule you for an appointment to inspect the car.
GET PAID. We will visit you and inspect the car based from the details you sent. We will let you sign some paperwork and pay you with CASH.
GET TOWED. We will tow the car from your location.
Selling a car made easy!
