5 Easy Tips to Help You Buy a Used Car
Whether you're a bright-eyed teenager with a brand new license, a new graduate that needs a set of wheels to commute to your new job, or simply new to the country and need to get around, used cars are often a good choice for getting from point A to point B.
There are three basic options for buying used cars: dealers, private sellers, and Certified Pre-Owned vehicles. Determining which is right for you depends on your budget and needs.
Private sellers: These are individuals such as you and I who have a car to sell. Typically these sellers use sites like Craigslist and Kijiji to advertise and as is the case for such sites, come with a little bit more risk than the other options. However they also provide the best chance for savings.
Dealers: Car dealerships don't only sell new cars, they also sell used cars. Car dealers can be independent dealerships such as ABC Car Sales or franchise dealerships that contract with manufacturers such as Honda or Mazda.
Certified Pre-Owned: These types of vehicles are used and have been inspected by the original manufacturer (i.e. Kia or Dodge) and often feature extended warranties provided by the manufacturer. These are typically the priciest option, but can provide more peace of mind than the other two.
Shop for a Car Loan
If you're buying from a private seller, you're going to have to pay cash, in which case, skip this section. But for everyone else, you're probably going to want to finance your car and that means you'll need to shop for a car loan.
Before making an offer to purchase, shop around for a car loan so you know exactly what you can afford and on what terms i.e. amortization period and interest rate.
Use The Internet
Websites such as Auto Trader make it fantastically easy to find the vehicle you want without leaving the comfort of your home. The site features plenty of search options allowing you to look for makes, models, price ranges and locations of potential cars at just the click of a mouse.
Most listings also include images of the vehicle for sale as well as how many kilometers it has. Lower kilometers are usually better, but don't be scared off by high numbers.
Know the Vehicle History
This is absolutely the most crucial step when buying a used car. All cars should have a VIN that the seller or dealer will make available to potential buyers.
You can use it in conjunction with a service like Car Proof or CARFAX to check a vehicle's history and find out if it's been in any accidents or if previous owners have passed it around like a hot potato over the years.
Be Safe When Meeting Private Sellers
I'm sure you've heard some horror stories involving Craigslist. While you typically shouldn't worry bad things happening, it never hurts to be cautious when dealing with money and strangers.
Try to bring a friend or a mechanic along for the ride so they can help you inspect the car before you make an offer to purchase. Choose to meet the seller in a public place like a shopping mall parking lot. It's also a good idea to pay for the car with a certified cheque or money order as it acts as proof of the purchase and helps avoid walking around with a pocket full of cash.
Always negotiate the price
With both private sellers and dealers, the price of a car is often open to a little wiggle room. Brush up on your negotiation skills before you meet the seller to ensure you're comfortable haggling over the price.
Use the Canadian Black Book to determine the approximate value for the car you want to buy and make an educated counter-offer if the listed price is below what they're asking. There are other things you can negotiate too, such as having the seller pay any fees associated with the inspection and vehicle history check.
Now you're ready to go out and get yourself a brand new used car. Don't forget that the next thing you need is car insurance.