Tips For Buying A Used Car

Buying a used car can be scary — especially if you worry about being scammed. There's nothing worse than seeing a car you like online, checking it out in person and making the purchase — only to realize the previous owner 'forgot' to mention some serious mechanical issues. Pretty discouraging to say the least. Below are a few tips so this doesn’t happen to you.

1. The first step when buying a used vehicle is to determine your budget . It will narrow down your choices while searching the local area for deals, and you'll be able to calculate your monthly payment if you decide to finance it. If you do plan on financing the vehicle, research your options! You may find that a loan from your bank will have a lower interest rate compared to the dealership or manufacturer.
2. Next, decide if you want to purchase a used vehicle from a dealership, a private owner or an online venue. If you're leaning towards a dealer or an online venue, expect a bigger price tag. Used vehicles from dealerships lots may include an extended warranty or service program, meaning these cars must be refurbished in order to meet warranty standards. Wondering where these cars came from? They're usually acquired from auctions or trade-ins. At least with a dealership and a private owner you can haggle over the price. With the online venues, the price is the price and there is no negotiating.
3. If you prefer buying from a private party, expect t o do all the leg work . When you meet with the owner, be prepared with a list of questions regarding ownership history, maintenance upkeep and the current condition of the car. Do a walk-around and take note of any bumps or scratches on the car, as well as any leaks. Remember, as the buyer, you are in control of the sale! Feel free to ask as many questions as you want about the vehicle you are interested in buying – especially if you don't know much about the make of the car. It will save you financial headache in the long run. You can easily investigate the car's history yourself by writing down the VIN number (usually located on the driver’s side door or on the dash by the driver’s side) and run a report online for a small price.
4. With the online venues you will need to do some of the leg work as well, such as taking the vehicle to DMV (Department of Motor Vehicle) for the inspection and registration. The purchase price will include the registration tax, but you will need to wait for DMV and the online venue to process all the paperwork, which will take months. Everything with the online venue is done through the mail and car carrier so the process takes longer. Usually with the dealership the transactions only take a month to receive the title. However, with the online process the title work is all done through the mail between the online venue and the DMV, so it can drag on.
5. Whether you are purchasing from a dealer, private owner or online, ALWAYS take the car for a test drive! During the drive, it’s a good idea to drive on hills, highways and in stop-and-go traffic. You’ll get a better feel for how it drives and decide if you feel comfortable driving it. Do not sign any paperwork until you have driven the vehicle, otherwise you will have purchased it without test driving it first.
6. Finally, after negotiating a price, it's time to close the deal! Before you negotiate, make sure the car is priced fairly (you can find out it's worth on a vehicle valuation website). After a price is set, you should never pay a private seller with cash. If something goes wrong and there's no paper trail, it may be tough to get your money back. Along with the car, the previous owner should provide the title, a dated receipt for the sale signed by you as well as the seller and a spare key if available. Also make sure to research the rules in your state regarding how the seller should transfer the title for the vehicle to you. Call your insurance agent prior to taking possession of the car for information on the process to insure the new vehicle.

If you are closing the deal at a dealership or online, it’s a similar process unless you are paying with a car loan or trading in your old car. Also, ask about getting an extended warranty for the vehicle at a fair price. This is usually negotiated separately from the car purchase. Most dealerships and online venue will give you a time period to return the vehicle if you are not happy with the purchase. However, if you have done your homework, you most likely will be trilled with your purchase!

Once you purchase a new-to-you car, please call Lisa Broadbent Insurance at (302) 731-0044 and we’ll help you with insurance coverage for your vehicle. Good luck and good shopping!