How to Purchase a Good Used Vehicle

If you are deciding to buy a used car, follow some important precautions. Read reviews, ask friends and family, compare options, research maintenance and insurance costs and try to narrow your search down to just one or two models.

A good place to start is by checking the vehicle history record using Carfax. Carfax will Run a title history, which can reveal a lot about the vehicle that you are considering. For instance, you will learn the odometer mileage and whether it has been rolled back, if the vehicle was ever involved in an accident and the number of previous owners. You also may consider having an auto repair facility or mechanic inspect the car before you purchase it. Most sellers don’t have a problem with this, but if they do there is reason for suspicion. Most probably there may be a problem with the vehicle that they don’t want you to know.

Some research tools to consider looking into before buying a used vehicle are NADA, Kelly Blue Book, Carfax and aaa.com. Dealerships usually will keep all of the service records for a vehicle that was originally purchased and serviced there.

Quite often, you can find a good used car at a reasonable price from a private individual. These vehicles can sell fast, so again be prepared before shopping and be ready to act quickly.

Once you’ve decided what car you want to buy, consider purchasing an extended warranty to protect you in the event your used car needs repair. If buying your vehicle used, be aware that some warranty periods begin from the vehicle’s in-service date. This means it may expire sooner than you anticipate. Be sure to read the contract before you buy and don’t rely on the seller to tell you about it.

Last Simple Steps before purchasing

When you buy a car from a private party, you will probably be asked to pay with a cashier's check or in cash. But before money changes hands, make sure you will be able to register the car in your name. Request the title and have it signed over to you. In most states, you will then mail the title to the Department of Motor Vehicles and a new title will be issued to you. In some cases, you will need to get a temporary operating permit until your new registration arrives.

But what if the seller still owes money on the car and the bank is holding the title? One way to deal with this is to conclude the sale at the bank where the title is held. Have the seller call ahead and make sure the title is ready. Once money has changed hands and the bank has been paid the balance of the loan, the seller can sign the title over to you.

In some cases, however, an out-of-state bank might hold the title. If so, go to the DMV and get a temporary operating permit by showing your bill of sale (in some states the bill of sale might have to be notarized). Then, after the seller pays off the balance of the loan with the proceeds of the sale, the title will be mailed to you.

Once all of the paperwork is complete, it is finally time to relax and begin enjoying your new purchase: a good used car.

Unlike new cars, which can be priced thousands of dollars higher, bigger bargains are possible for the smart used-car shopper.