By Emily Guy Birken on 1 February 2018
Buying a used car can feel a little like a crap shoot. Is the
car you have your eye on really worth the thousands you're going to spend on
it? Or will you find it's held together with Band-Aids and twine after driving
it off the dealer's lot?
But buying a used car doesn't have to be nerve-wracking or
expensive. You just need to know what you should be asking throughout the
process. These eight questions can help you to find an affordable used car that
will keep you on the road for years to come. (See also: Could
You Put Away a Million Dollars by Driving a Used Car?)
Questions to ask yourself
Before you even start debating the relative merits of a sedan
versus an SUV, you need to ask yourself some important questions. These are
going to be the basis of your used car purchasing decision, so don't think you
can skip over them to get to the part where you're salivating over pictures of
cars online.
1. How much work am I willing to do to get a deal?
When you buy a used car, you can spend money and save time by
making a purchase from a reputable local dealer — or you can spend time and save
money by buying direct from a local private seller. And whether you purchase
from a dealer or a private seller, you can often find better deals if you
broaden your search to include nearby cities.
This is why it's a good idea for you to recognize whether you
have more time or more money at your disposal. If you know that you are not
willing or able to devote a great deal of time to your search, you might not
find the best price possible. And if you don't have a great deal of money to
spend, your search might take longer while you try to find the right price.
2. What is my budget?
Whether you plan to pay cash for your used car or you expect to
take on an auto loan, you need to start with a good look at how much car you
can afford. According to the 2017 Edmunds Used Vehicle Market Report, the
average price of a used car was a whopping $19,189 in 2016.
If you don't have the full cost of your new-to-you car saved up,
make sure you have calculated the monthly cost of financing the vehicle. For
instance, let's say you have $4,000 set aside to put down on a $19,000 car. A
48-month loan of $15,000 at 3.24 percent interest will cost you $334 per month.
Of course, your monthly car payment is not the only cost
associated with buying a car. You will also need to calculate your insurance
costs, since different vehicle models can have different insurance premiums. In
addition, different vehicles can require varying levels of maintenance and the
cost of parts, labor, and repairs can be higher or lower depending on which car
you choose.
Taking the time to figure out your car shopping budget, as well as
your insurance and maintenance budget, can help you zero in on the right make
and model for your finances, even before you start looking for the specific car
you want to buy.
3. How will I finance this purchase?
If you are planning to take on an auto loan, don't wait until
after you've found the car you want to get your financing in place. Whether you
are purchasing a car from a dealer or a private seller, having your financing
secured ahead of time gives you an important bargaining chip. You will be empowered
to negotiate with the seller in the same way that a cash buyer could. You will
not be stuck with the terms offered by the dealer's financing options, and you
will make it clear to a private seller that you are a motivated buyer.
To find the right loan, you can shop around among banks and
credit unions for the best rates and terms. Doing this ahead of time will also
allow you to make rational decisions that aren't motivated by lust for a
particular vehicle that is calling your name.
Question to ask the internet
Now we get to the fun part. You've figured out your budget, so
you can start looking online at local (or not-so-local, if you're willing to
travel for a deal) used cars for sale. But rather than just make a list of
possibilities in your price range, don't forget to do a little research on the
particular makes and models that you are planning to test drive.
4. What are common problems with this make and model?
Automotive engineers and manufacturers are not perfect, which
means there can be common problems with certain models that are predictable if
you know a little about the brand. For instance, Honda Accord V6s released
between 1999 and 2004 have a widespread transmission problem that often
requires an expensive transmission replacement. While not all common problems
are as costly as this one, it is always a good idea to know as much as possible
about the known complaints about your potential purchase before you even go for
a test drive.
If Google is not coming up with answers, consider finding a car
enthusiast forum for the particular make and model you're looking to buy. Ask
these friendly folks for some insight.
Questions to ask the seller over the phone
At this point, it's tempting to just go test drive the cars on
your finalist list. But before you do this, you should pick up the phone and
have a conversation with the dealer or seller. Here are some questions you can
ask to help you narrow down your search before committing to a test drive:
5. Can you tell me about any recent maintenance or repair?
A used car has a history, which means there must have been some
maintenance, and possibly some repair. You want to find a seller who is able to
tell you what kinds of maintenance and repairs were recently done. If the
seller claims that the 10-year-old vehicle you're interested in has needed
nothing but oil changes, that could be a red flag, particularly if you know
what common problems crop up on that make and model.
You should also consider pulling the car's history report from
Carfax or Autocheck. That way, you can double check that the maintenance and
repairs the seller claims to have done match up with those documented on the
vehicle history report. (See also: How
to Buy a Used Car Without Getting Ripped Off)
6. Can my mechanic look at the vehicle before I make my final
decision?
If the answer is anything other than yes, hang up the phone and
move on.
Questions to ask your mechanic
Once you've narrowed down the options, it's time to let your
trusted mechanic give it a once-over. Since your mechanic may not feel
comfortable just giving you a thumbs up or thumbs down, here are two questions
to ask to help you decide if the car is right for you:
7. Did the owner do a good job of maintaining this vehicle?
A well-made car that was poorly maintained may be a worse bet
than a mediocre car that was lovingly maintained. Your mechanic will be able to
tell you if the previous owner stayed on top of necessary regular and irregular
maintenance.
8. Did the previous owner use cheap parts or good parts?
Not all car parts are created equal. A previous owner who did
repairs with low-quality, cheap parts may have done a disservice to the car
(and the next owner). Other than taking the car completely apart, there will be
no way to know if all replacement parts were high-quality — but asking if the
easy-to-check parts are good quality can be a decent indicator that the
previous owner took good care of the vehicle.
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