How to Buy a Used Car Right Now

We know what you’re thinking: The used car market is crazy right now!

But believe it or not, reliable used cars are not dead. There are still plenty of options available – even in your price range!

We’re going to walk you through the best way to buy a used car (because, trust us, there are a lot of wrong ways out there) so you can drive away in your favorite ride with no regrets .

How to Buy a Used Car

Buying a used car instead of a brand new car is definitely the smartest option financially (so kudos to you for going that route). But it still comes with a few risks. And if you don’t do your research, you could end up paying more than you should for your car – or even worse, end up with a used car that’s total junk.

These eight tips for buying a used car will help steer you in the right direction:

1. Decide how much to spend.
2. Find the right used car.
3. Shop around.
4. Find out how much the car is worth.
5. Inspect the car yourself.
6. Go for a test drive.
7. Get it checked by an engineer.
8. Negotiating the price.

First things first: You need to know how much car you can afford. Just so we’re clear, we’re not talking about car payments here. Your aim should be to pay for a car – in full – with cash. As in, 100% down. And yes, it is absolutely possible!

Now, you may have to lower the price or save for the car you want. But you will avoid having a crazy monthly car payment. Plus, you’ll save yourself thousands of dollars in interest (no joke). For example, let’s say you borrow $10,000 for a car with an interest rate of 9.34% (the average) and a term of five years.¹ You’ll end up spending an extra $2,554 in interest!

Listen, you don’t need to take out a car loan. You can find reliable used cars at any price range. If you’re short on cash, look for a vehicle to get you from point A to point B for as little as $1,000 to $2,000. It may not be pretty, but you will succeed.

Or if your current car can last you a little longer, take all the money you would have wasted on a car payment each month and save for an upgrade later. Make this a priority in your budget!

Once you’ve decided how much you’re going to spend, it’s time to find the right car. Not yours a dream a car The right car for you ok now. This is the one that best suits your lifestyle and budget.

Before you declare your allegiance to your favorite car brand, step back and look at the types of vehicles out there and what each was designed to do.

For example, trucks were designed to transport goods and heavy materials. So unless you’re Bob the Builder regularly hauling heavy loads (you know – gravel, wood, bricks), you probably don’t need a truck. For a good commuting vehicle, stick to options that are compact and energy efficient, such as sedans, hatchbacks or hybrids.

Here’s a quick checklist to help you narrow down your choices. Choice three things that are most important to you when buying a used car.

• I want a vehicle with plenty of cargo space.
• I want a vehicle that can fit more people.
• I want a vehicle with better fuel economy.
• I want a vehicle that is easy to get in and out of.
• I want a vehicle that is safe.
• I want a vehicle that is better for the environment.
• I want a vehicle that can carry heavy cargo.
• I want a vehicle that can go off road or rough terrain.
• I want a vehicle that is compact and light for parking in the city.
• I want a vehicle that has towing capabilities.

Remember, you won’t find a vehicle that checks every box. Be honest with yourself about your wants versus your needs, and think long term How you will use your car.

Also, you can save some money by removing chi features don’t need your car to get Not just technology like GPS, Bluetooth connectivity and backup cameras – but the basics too. Can you survive with a two-cylinder engine over a four-cylinder? Do you really need all wheel drive? Stick shift transmissions are also cheaper (if you don’t mind the learning curve).

Now that you know how much you can spend and what kind of car you need, you’re ready to start shopping. There are plenty of places to buy used cars (each with their own pros and cons).

Don’t jump at the first offer you see! Take the time to compare different options and see what’s available.

Here are some places to start your used car search:

• CarMax
• Edmunds
• cars.com
• Caravan
• Craigslist
• Autotrader
• Independent used car dealers
• showroom lawns

Step 4: Find out how much the car is worth.

Once you’ve shopped around and narrowed down your options, you need to find out if the used car you’ve chosen is worth the price. Dig up all the information you can about the car so you can talk to the seller to get a better deal.

1. Start with the Kelley Blue Book (KBB).

KBB uses data from actual sales and auction prices to give you a realistic price range.

2. Purchase a vehicle history report (VHR).

A good VHR costs around $50 and gives you accident history, ownership history and a ton of other records. It takes a lot of guesswork out of buying a used car. All you need is the vehicle identification number (VIN) for a detailed report.

3. Determine the cost of ownership.

What will you have to spend to maintain the car (oil changes, new tires, fluid flushes), and what long-term repairs should you expect for the make and model you’re looking at? Also, what is the average cost of replacement parts and repairs? You can use the Edmunds True Cost to Own tool to get a good estimate for all of that.

4.Read used car forums.

Almost every car model has an online forum with reviews going back a bit. Look for common problems owners have had with the type of car you want to buy.

5. Check the vehicle’s recall history.

Don’t assume the seller has taken care of used car safety recalls. In fact, over 72 million US vehicles have an open recall on them – that’s 23% of all cars on the road!² And yes, you guessed it — people are still trying to sell those cars without fix the recall. So what can you do? Check the National Highway Traffic Safety Administration for your vehicle’s recall history (if it has one).

6. Get an insurance quote.

Don’t forget to consider car insurance! Good news for you: Used cars are usually cheaper to insure than new. In fact, a 5 year old car is around 27% less expensive to insure than its brand new counterpart.³ But ask if your premium will change based on a different make or model.

Step 5: Inspect the car yourself.

Even if you’re not a mechanic, you can find some of the most obvious car issues yourself by giving it a good spin and asking the right questions. Not every problem has to put you off buying the car – unless it’s something major like a blown head gasket (yes, just that sounds expensive). But you also don’t want to buy someone else’s car problems.

Here are some things to check when inspecting a used car yourself. (You can also use this full checklist from the Department of Motor Vehicles.)

Under the Hood

• Check the oil level and color.

• Check the color of the oil under the oil cap.

• Check the transmission fluid dipstick.

• Check the coolant level.

Outside

• Look at the car’s paint job.

• Open and close the doors, trunk, fuel door and fuel cap.

Inside

• Check the wear on the steering wheel, seats and pedals.

• Lock and unlock all doors.

• Stop the car and watch the temperature gauge.

Step 6: Go for a test drive.

It’s one thing to look over a car, but you also need to get a good feel for how it drives before you buy.

When you take the car for a drive, turn off the stereo so you can hear any strange noises. Choose a route with hills, bumps and, yes, even holes. (Don’t go all Fast and Furious and return the car in worse condition.)

Use your driving test to answer these questions:

Feeling

• How does the car feel on flat roads?
• How does it feel when it hits a bump or pothole?
• Does it struggle to pick up speed?
• Do the gears change smoothly?
• Are the brakes squishy or too sensitive?
• How does your body feel after the test drive?

A noise

• Does the engine sound smooth when you accelerate?
• Does the engine rush, knock or grind when you are at idle?
• Are there vibrations or odd noises under the hood when you accelerate over 60 mph?
• Do the brakes squeal?

Look

• Can you see out of the car easily?
• Does black smoke come out of the exhaust when you start the car or accelerate?
• Is the RPM gauge steady at idle?

Smell

• Does the inside of the car smell like smoke?
• Turn down the air conditioning – do you smell burning oil?

Step 7: Get it checked by a mechanic.

If the car has passed your personal inspection, good. But remember to always have a mechanic inspect a used car, regardless of condition. A good mechanic will tell if you are about to buy a reliable used car or a piece of junk. And if the seller doesn’t want a mechanic to inspect the car, that’s probably a red flag that the car has a major problem that you should avoid.

When it comes to inspections, you have two options:

• Take the car to a reliable garage. Most car garages charge a flat fee for inspecting used cars. They will check the car and tell you what is going on.
• Set up mobile inspection. A mechanic will come to the car, do the inspection, and print the results.

If a mechanic tells you the car has more damages than it’s worth, let the seller know you’re no longer interested. Or use that information to lower the asking price – just know that you’ll have to spend money fixing those issues at some point.

Step 8: Negotiating the price.

For many people, this is theirs least favorite part of the used car buying process. Hey, we get it. Maybe you’re not the bargaining type. But you don’t have to be Mark Cuban to talk a used car dealer into giving you a good deal.

When negotiating the best price on a car, remember to bring your research to the table, pay with cash (no matter what offers are thrown), take your time, and don’t be afraid to walk away!

Don’t Forget: Get the Right Car Insurance

Hey! Congratulations on your new car you just bought. URRRRRRT! SMASH!

Nobody expects an accident – which is why you need insurance a moment you drive away in that new ride. But with so many types of car insurance available, it’s easy to spend more money than your coverage is worth.

You need an expert in your corner who can answer your questions, run the numbers, and compare different rates. That’s why you should contact a RamseyTrusted insurance pro!

RamseyTrusted professionals work with multiple insurance companies to find you the right insurance at the right price. We’ve vetted them, and you can trust that they’ll guide you through the whole process step by step — so you can feel more relaxed behind the wheel.

Make sure you and your family have the insurance you need to protect yourself and your used car (paid for). Find an insurance professional today!