10 Tips for Buying a Second-Hand Car

There’s nothing wrong with buying a second-hand car these days. New cars can be super pricey. When we checked, a new Chevy Suburban cost upwards of $70,000. That’s a lot of money!

Plus, new cars lose value almost immediately when you drive them off the lot. We’re talking 10-20% drop in value right when they leave the lot. With a used car, you can sell it a few weeks later, and not much will have changed from a value standpoint.

The Problem with Buying Second-Hand Cars

On paper, buying used is the way to go. You save a ton of money when buying a second-hand car. On top of that, you don’t instantly lose any value when you drive it off the lot. However, there are issues with buying used, too.

One major issue with buying used cars is having confidence. With a new car, you know nothing is broken. You know the car hasn’t been in a crash. You know there’s no damages. You have a manufacturer’s warranty to fall back on in case of any issues.

With a used car, you often don’t know if the car has been in an accident. You can’t be sure that there’s not any structural damage. Plus, you rarely have a solid warranty to fall back on, as car dealerships understand the risks of buying second-hand, too.

10 Tips for Buying a Second-Hand Car

So, what’s a car buyer to do? What’s a good way to get a great deal on a second-hand car? That’s where we come in. After being in the insurance industry for decades, we’ve come up with 10 tips to ensure second-hand car buying success.

• Set a Budget

You’re looking for value. You’re buying a second-hand car to save money. So, decide on a budget and stick to it. No wavering. There’s no point in buying used and then spending too much money.

• Start Online

Never just run to a used car dealership and start shopping around. That’s a surefire way to pay too much. Instead, start the buying process online. Search through online classifieds. See if there are any models that catch your eye within your price point.

• Start Investigating

Once you have found the model you want and see one for sale in your area, it’s time to investigate. That means going online and finding a car history report. You’ll need a VIN to do this. If the seller or dealership isn’t willing to give it to you, then something fishy is going on. And by fishy, we mean the car has been in a wreck and isn’t worth your time.

• Go See the Car

Never buy or commit to buying without seeing the car in-person. This should be common sense, but you cannot imagine the stories we’ve been told. If you’re truly interested in a car, go see it in person.

• Test Drive

While you’re checking out the car, make sure to give it a test drive. You MUST test drive the car before the true buying process begins. Take it on the highway. Check out the brakes. Do a full inspection. Obviously, if a seller won’t let you drive it, there’s a big issue.

• Bring Your Own Mechanic

If you like the car after a test drive, get your personal mechanic out to test the car. Or drive it into the shop. You want a professional set of eyes you trust looking at the car and what type of shape it’s in. You cannot trust the online history reports or what the previous owner is saying.

• Inspect the Owner

You should inspect more than the car. You should be inspecting the owner, too. Is the owner someone who seems to have cared for the vehicle and maintained it throughout the time they’ve owned it? (Diligent owners usually have receipts as proof of maintenance throughout their ownership.)  Or is the individual someone who doesn’t seem to have cared much for the vehicle. Sometimes you have to go with your gut.

• Always Negotiate

You should never just accept the sticker price on a second-hand car. That’s just crazy. Instead, you must negotiate. This means doing your research, bringing evidence, and offering to promptly pay for the car and take it off the market.

• Close the Deal

If you’re buying from a dealership, all the paperwork and financing is handled at the dealership. If you’re buying from an individual, things get a little trickier. Make sure you get both the title and registration transferred over to your name. You do not want after sale issues with a used car due to paperwork.

• Insurance

You need to have your insurance sorted out immediately after you buy the second-hand car. A quick call to your agent should be all you need to get on the right track. Your rates may go up or down slightly, but things shouldn’t change too much with a used car.

Using the 10 tips above, you should be prepared to purchase second-hand car without any issues. This will allow you to save money and get a great deal on a car. Just remember to be patient and wait until the right car comes along.