(Step #1) Search online used car classifieds and newspapers
Online used car classifieds and used car prices
Newspaper automotive classifieds are narrowly focused with limited market area. With thousands of cars listed. Savvy consumers sell used cars online on cheaper and heavily traveled auto classified web sites. Many services keep your ad online until your car sells, which newspapers don't do. This is an advantage of used car classified sites, many have 200,000 or more cars listed. Many cars list the VIN numbers online so you can run a VIN search. I've found many VINs to be false, and you have no recourse as you are buying the car "As Is", so find out problems before you buy, not after.
(Step #2) Get a 60 day Unlimited Autocheck Vehicle History Report.Best Advice On This Entire Page:
DO NOT buy a used car without running a used car history search like the AutoCheck 60 day Unlimited Vehicle History Report on the VIN# first. The Autocheck Report on a used car verifies that there was no previous branding of the title, flooding of the car, odometer rollback, salvaged title, or that it was reported stolen, and gives a good VIN decode. Sign up with them now before you forget, get the AutoCheck 60 day Unlimited Vehicle History Report option instead of the single report. Don't have a VIN to run yet? Yes you do, run your own car first. It's instantaneous, then run your parents' car to get a feel for reading the reports. Get the VIN off used cars you look at and it's an all you can eat Autocheck 60 day buffet. You'll look at 10 used cars before you buy.
(Step #3) Get a used car loan (from dealer or person to person).Most banks will NOT lend you money for a used car that is older than 4 or 5 years old. Banks charge at least 2% higher APR on used car loans, than they do for new car loans. But online lenders are much cheaper, and used car loan rates are closer to new car loan rates. Make sure your credit score is at least 680, then as a prime borrower, and you can choose the lowest APR. Never pay cash for a deposit on a car. If the deal falls through, you'll never get your cash back, but you can always dispute a credit transaction. If your credit is so bad and If you're in too deep, maybe now is not the time to buy a car.
How Much Used Car Loan Can You Afford?
Before looking for a used car, you better know how much you can afford. Banks will only lend you money to buy a used car up to 5 years old. This is why you are at a disadvantage when you trade in a used car over 4 years old at a dealer, because the car is worthless to them. The banks won't lend money to buy these older used cars, so they are harder to resell. Read our Auto Finance Help Section for tips on how to get the best rates on a used car loan.
(Step #4) Negotiate tough with a used car dealer or private seller.Negotiating tips on a used car for sale at a dealership:"Certified Used Cars" at Car Dealers
The word "certified" is over used marketing for "reconditioning" tasks that some car dealers do to a trade in before they resell it. Some dealers lie and don't do a thing, some spray black paint on engine wires to make them look newer. For others it's a hot air excuse charge you more money. In fact, several of our readers have reported running vehicle history reports on "certified"; cars and found they had been in prior accidents. Not what you would expect from a certified Lexus. If you can get a 90 day warranty, then you're somewhat protected. Ignore verbal promises and read the exclusions list. But if you get a 90 warranty, it does not mean you're covered for everything. Don't let "certified used car" make you complacent and fail to perform due diligence on that used car!
(Step #5) Complete the sale, get an extended warranty
Once the seller agrees to your offer, discuss payment options. Use our bill of sale that itemizes the car, and it's VIN#, with any known failures on the car. Sometimes the seller may promise to fix something for you after the car is bought, but this is a dangerous deal to enter. Tell them to fix it first or put it in writing. If you want any kind of traceability, get a bank draft, with the seller listed as payee. Cash is dangerous to carry around. With a bank draft, you have a record that you paid the seller money in case there are problems down the road. If the car turns out to be stolen, you can cancel the bank draft. But you can't cancel cash. Some people don't want a paper trail, but be aware of the risks. This is one of the our most important warnings
