Buying a Used Car

Back to first Five Things

Thing No 6  

Shop around for financing.

If you’re getting a loan for the car it will need to be less than 4 years old (you might be able to stretch it to 5).  Of course, you should shop around for the best rate.  A credit score of 680 should get you in the game for the best rates (which are slightly higher than those for new cars) check equifax.com.

Thing No 7  

Uncheck the “as is” box.

If you buy from a dealer, get all the promised repairs in writing. Do not sign an “As Is” agreement with a dealer.  This supercedes warranties.  You should get a 90 day warranty (at least 30 days) from a dealer, not an “as is” agreement.

Thing No 8  

Remind the seller that the car is only worth what they can get someone to pay for it. 

Just because the Kelley Blue Book value says it’s worth $10,000, it’s only worth that if the seller is willing to sit on it until they find the buyer who is willing to pay it.  The seller may very well prefer to cut his losses and take less instead.

Thing No 9  

Use your negotiating points.

Maintenance records – point out that without them, you have no way of knowing if the car was maintained properly plus any mileage in excess of 12,000 per year is in beyond the scope of “normal wear and tear” depreciation built into the pricing estimates.  Does it include an extra key?  (Did you know that the going rate for extra keys at the higher end dealers is $300?) You don’t have to be an ass-face but it’s okay to make him feel like maybe he isn’t going to sell this car in a hot minute and he might want to cater to this precious customer a little bit.

Thing No 10  

Take it to a trusted mechanic. 

Yours, not theirs. He should put it up on the lift not just poke around under the hood.  If you’re really a nut, take it to the car wash and see if it leaks.

Thing No 11  

Buy a warranty.

Private sellers read here about how to shop for one, carbuyingtips.com.

Thing No 12  

Transfer ownership.

The seller has to sign over the Certificate of Title to you in the space provided.  You’ll have to fill out the new owner information and sadly, this will require a trip to the dreaded DMV (you can make an appointment online). Go to dmv.org and click on your state. State laws vary slightly so you can check here for anything else you need to be aware of, dmv.org/title-transfers. 

Thing No 13  

Do not hand over payment until you have the title in hand. 

No excuses.  If you accept his promise to send it tomorrow, we can’t be seen associating with you anymore.

Thing No 14  

Pay With A Bank Draft. 

Not cash.  Never cash. Who are you, Scarface?  You want to be able to prove you paid for the car.

Back to first Five Things