How to Buy a Reliable Used Car

By Jason Kay

Used cars are bought significantly more often than new cars. However new car sales in total average more than the amount spent on used cars. This shows how much potential savings can be found by those who choose to invest in a used car rather than a new one. Even though it seems like a relatively easy thing to do, there are some things to keep in mind when you buy a used car.

1. Have a budget in mind. Either have a loan pre-authorized with a bank or credit union or have the amount of money set aside that you are willing to spend. For car loans, you will often get much better rates through a bank or credit union than you will through dealer financing. Also by having a pre-set amount in mind, you will not be tempted by cars that are too expensive.

2. Look beyond the car lot. While many used car dealers exist, they are not necessarily the best place to find a deal on used cars. New car dealers always have used cars available as many people trade them in on newer models. Certain times of the year they do inventory reduction sales and this is a great time to buy. You may also want to check out rental car companies, who regularly sell cars in their fleet. Many good deals can be had on their late model cars that have been maintained, cleaned and driven relatively little.

3. Check out online listings. Many websites, such as Craiglist.org, have free ad space for those wanting to sell privately. When looking for a car, check such listings regularly as deals don't last long.

4. Even before you go to test drive a car that interests you, find out its vital information. Ask for information like model, features, odometer reading and if there have been any accidents or major work done on it. Be sure to get the VIN or vehicle identification number, so you can run a Carfax history on the vehicle. The very useful information that a Carfax report gives you includes dates the car was bought and sold; where it was registered; if any recalls were done on it; if it was involved in any car accidents; any major repair work and possibly even regular maintenance. Having such information will help you to know if you've found a deal or a lemon.

5. Be prepared. Know what you need to bring to a sale and what you need to get from it in order to properly register the car in your state. In most places you should bring along your driver's license, insurance information and a license plate if you have one.

6. Used car and new car dealers will typically take care of the paperwork for you, which is one of the perks of doing business with such companies. If it is a private sale, be sure to bring all the necessary paperwork to the DMV immediately following the sale and take care of the details that are required. Get started now looking for the used car deal you have always dreamt of finding. By putting the above tips to work, you will be best equipped for finding a great used car at a great price.

Learn how to buy anything. Read the latest consumer advice articles written by experts