Table Of Content
- How Much To Spend?
- From where to buy a used Car?
- Rental, Private, Or Certified Pre-Owned
- How To Buy A Used Car
- Pre- Purchase Inspection AKA PPC
- VIN for the WIN
- Finance, Lease Or Cash
- Add-Ons and Warranties
How Much To Spend?
There is no hard-and-fast answer to this question, sure many sites like CR advise you to pay no more than 20 percent of your net income, but in reality, it depends a lot on the type of car you are looking for and how much you are willing to part with.
Some folks spend their entire life savings on their dream cars, and there’s nothing wrong with it as long you have your finances structured out. But before you finish the deal, look for price patterns and the industry average of the car and trim you have settled on. For example, a used 2020 Civic Type R is always in demand and currently retails for around $40,000. The new one is like $50,000. As you can see the difference isn’t much due to high demand and there is little you can do about it.
Similarly, you might see 2020 Type R listed for $50,000 while the rest of the crop is around 40K. Why is this? Well, the Type R is an enthusiastic car first and foremost and sometimes careful owners go the extra mile to keep the car showroom fresh. This particular car may have had a full ceramic coating, bigger brakes, or maybe using better coilovers than OEM. All this stuff adds to the MSRP and will be of great benefit to you in the long run.
From where to buy a used Car?
The dealership nearest to where you internet on keeping the car Even if you are getting the best deals on sites like CarIndigo. Do not purchase the car sight unseen pictures can be highly cherry pickles at times and the actual car may very well turn out to be a nasty surprise.
Instead, you can verify the specs and contact the dealership for more accurate information regarding your purchase. Also, try to arrange an in-person visit. If the seller is far away, a Zoom call or Facetime with the car in question is your best bet. Do type in the dealership's name on Google, check out the reviews, and pay mind to what other customers have to say.
Rental, Private, Or Certified Pre-Owned
Mega rental companies like Hertz usually purchase cars directly from the carmakers and then auction them off when they get past the shelf life, for chump change. Just recently they auctioned off the EV fleet full of cars like Model 3 for prices as low as $20,000. You just need to fill out some IRS paperwork and be on your merry way.
The catch is that fleet cars are the most abused in the industry. Despite looking like new, they rack up a lot of miles in a very short amount of time. Do ponder upon the odometer readings and components that need to be replaced.
For used cars listed by private sellers follow the tips given below but do check the ID of the seller and make sure it matches the one on the car title.
For those of us who can’t seem to get rid of the “What if something goes wrong later?” bug, consider buying a Certified Pre Owned Vehicle. These cars are usually found on brand dealership lots and have some portion of the manufacturer warranty left over.
Meaning that you can just walk in and claim a free replacement if something goes kaput. Since you are purchasing a CPO, paperwork is usually legit with no hidden BS. On the flip side prices of CPO cars is generally on a steeper side.
Also Read-Essential Tips for First-Time Car BuyersHow To Buy A Used Car
This is the holy grail of used car buying and by far the most important chapter in our guide-
Used Car Buying Location- Buying a car from near coastal areas begs for a thorough corrosion inspection. The salty sea breeze can rust even the most resilient of sheet metals in no time. Similarly, buying cars from snow-prone states like Vermont or Maine means cars have covered thousands of miles on rust-inducing salt-sprinkled roads.
Rhode Island, Hawaii, and California have the worst roads in the industry which equates to heavier loads on suspension components that can lead to failure that can occur without any warning.
Type of seller - if you are buying the car from a dealership, seller information may be incredibly hard to get, but in case of online bids do check the type of seller you are buying the car from. An enthusiast may have taken care of the vehicle in a much more comprehensive way while someone who has a large family and or travels a lot of miles due to work may have neglected some crucial repairs and dings.
Type of Car - There is no denying that cars from Honda, Subaru, and Toyota have historically enjoyed a positive reputation in terms of reliability. But certain vehicle types no matter who the carmaker is should be scrutinized with eagle eyes for hassle-free ownership.
- Pickup trucks are the backbone of the American economy and occupy several spots in the list of top ten best-selling cars. Their ute-focused chops mean plenty of folks use them in heavy hauling for long miles resulting in accelerated wear and tear of drivetrain components.
- In the case of sports cars stuff like Linelock and Launch Control wreaks havoc on the gearbox and may require an additional specialized inspection. The same goes for track-focused cars.
- Similarly, buying manual transmission cars from first-time car owners could result in sooner-than-expected clutch replacements which can cost thousands.
Pre- Purchase Inspection AKA PPC
Mechanical Inspection- This job requires professional expertise and may cost you a couple of hundred bucks This includes thorough investigations of car components like -
- Control arms
- Suspension bushings
- Brake discs, pads, linings
- Engine lube
- Diff oil
- Tranny oil
- Transmission linkages
- Steering action
- Underside inspection
- Electronics inspection include gauges, sensors, and safety systems.
Do keep in mind that a mechanical inspection should be done by someone who does not work in the place you are buying the car from. Often the dealer will offer you a free inspection done by a shady mechanic.
Another great reason for PPC is if your mechanic finds something that can be easily fixed you can negotiate the quoted price a couple of notches down for even more savings.
Now the aforementioned inspection is good for most gas-powered cars but when it comes to EVs, things can get a bit technical for even the most chic among us.
The only way to perform a PPC equivalent on an EV battery and motor is to run the car through a battery degradation test. On a Tesla, this can be done through a high-voltage menu in service mode.
Make sure that the battery is next zero percentage and is connected to a charger. The test can take anywhere between 12 to 24 hrs to complete, so you need to be rather patient and find a dealer who is nice enough to accommodate the procedure.
VIN for the WIN
This is a metal badge with a seemingly random string of 17 numbers located in the engine bay or somewhere around the front door in most cases. It is unique for every car and every car has one. Entering this number on websites like NHTSA can tell you some specifics about the particular car like where and when it was made.
Most importantly though, you can check if that particular car is under recall or has been written off by some insurer due to damage cost exceeding its total value.
The recall part is crucial as every year lot of cars are called back by the NHTSA for reasons that can be as trivial as a loose bolt or as major as defective airbags.
This holds especially true for mass-market manufacturers like GM, Ford, and Toyota as they sell millions of units every year. Assure that the previous owners have adhered to the recall.
Finance, Lease Or Cash
Financing a used car is pretty straightforward if you have a good or excellent credit score, just don't expect any zero APR deals. Also, the title of the car will belong to the lender until you have repaid the loan.
Try to get pre-approved for a loan, there have been reports of dealers offering loans to consumers with inflated interest rates. For example, a dealer might have secured the loan for say, 5 % per annum but will quote you 8 %, keeping three percent as his profit.
Leasing a car is a smart thing to do if you get bored easily and are looking to switch cars ever so often. The only downside is that you are mileage-locked, usually only 10,000 miles a year, and after that every mile you cover will include chargers to the tune of $0.20-$0.25 per mile.
Also, you might get a discount if you are willing to purchase the car after the lease ends, and used EVs are eligible for up to $4000 tax credit if they cost $25,000 or less. Both leasing and financing a used car is a good way to avoid any hefty upfront payments.
Add-Ons and Warranties
Be aware of the fact that if something breaks you will have to pay from your pocket in out-of-warranty cases. So try and find extendable warranty options if applicable. There are a lot of different types but these are thrones you need to worry about.
Manufacturer warranty - This is an original that came with your car usually it's between 3-7 tears or up to 150,000 miles depending on the carmaker. For EVs, it's 8 years on the battery. Buy a used one with the maximum manufacturer warranty left over.
As-Is Warranty - There is no warranty of any kind, you drive it off the elot, and if something breaks you are responsible. It works if you are just looking for a project car or engine swap anyway.
Often dealers will add some nonsensical charges to the final price like rustproofing, storage charges, washing fees, reconditioning fees, and documents fees. All of them are bogus, have them waived off.
