2. View at least 15 cars that are in your price range before making a decision. Test drive each car with someone who knows about cars. Your parents may or may not fit the bill on this one. If they do, great, take them along, but if your Mom or Dad is an auto mechanical novice make sure you take somebody who knows cars. Take Mom or Dad as well, but a person who is truly knowledgeable about cars is invaluable on a test drive.
3. Do your research. Some people think that research stops with knowing the Blue Book value of the car you’re interested in. It doesn’t. You need to know about common problems to look for in the year and model of car you’re interested in, you need to know that the car is in good mechanical condition, you need to know that the body is in good shape and if possible get a report of any accidents it’s been in and copies of all service records.
4. Based on your test drive, your research and your preferences narrow the field to 3 choices and test drive them again. Ask questions specific to each car, don’t be afraid to ask anything that is relevant to the car’s performance and value even if it sounds silly or stupid. Things like the number of previous owners (1 owner is always ideal), how many accidents it’s been in and how serious the damage was, which major parts that have been replaced or rebuilt, whether or not anyone has smoked in the vehicle, if it was used in regular carpooling, and if it has been driven in extreme climates are all fair questions.
5. With input from your parents and your mechanical expert pick your prize, choose which car you want to buy and get ready to negotiate price. The asking price is usually a guide, most sellers give themselves some wiggle room and on average will come down anywhere between 10 and 15 percent. When negotiating price bring a parent. Their mere presence is likely to give you an edge plus chances are good your parent has bought a car before and knows how to haggle.
6. When you’ve agreed on a price, and if you’re spending more than a couple thousand, it’s worthwhile to condition the sale on an inspection. This means that you will buy the car only after it has passed a mechanical and structural inspection to your satisfaction. If a seller is unwilling to give you this then you should be skeptical. An inspection will cost you a few hundred dollars and you should factor that in to your budget, but it could end up saving you money and grief in the future by identifying any potential; areas of concern and/or finding any problems that were not evident on your test drive.
7. Once it’s passed inspection it’s time to close the deal and dive off in your new car. All that is left to do now is pay. Don’t pay in cash if at all possible. Get a cahiers check, which is as good as cash, or a money order if the seller won’t take a personal check but avoid cash. The bigger your paper trail the better. Even on a private sale insist on a detailed bill of sale that lists the condition of the car at the time of sale, the selling price, the terms of the sale, and the contact info of both buyer and seller. Be careful to note if anything that isn’t working properly and who’s responsibility it will be to pay for the repair. For the most part used car sales are “as is” deals unless a contract specifies otherwise. Oral contracts are hard to prove and even harder to enforce so it is always best to get it in writing!
Final Tips
- When setting your budget make sure you factor in the cost of registration, license plates, taxes and insurance.
- Don’t be swayed by a pretty car. Cars that are in terrible mechanical condition can be made to look really good on the outside. But like with people, with cars it’s what’s inside that counts.
- Listen to the experts. If your parents, your mechanic and or your auto inspector tell you to walk away you should listen. These people have no reason to lead you astray, the seller however just wants to get paid.
- Like any major decision this is one that should never be made by peer pressure. By a good safe car and don’t worry how cool it looks to your friends. In the end your friends are just going to be happy to have a friend with a car of their own.