Questions to Ask When Buying a Used Car

It’s true that used automobiles have gotten lots pricier over the previous couple of years. However earlier than you begin eager about giving up automobiles altogether and strolling in all places on foot, hear us out.

Not each used automobile will value you an arm and a leg. You possibly can nonetheless discover loads of good offers on used automobiles on the market—you simply should do your homework, know the place to buy, perceive what you’re on the lookout for, and persist with your funds.

On high of all that, it’s much more vital to ask the proper questions today—questions that provide the data you’ll want to know in case you’re getting a great deal, or in case you ought to run for the hills.

So, irrespective of where you’re buying a used car, be sure to get solutions to those 13 questions.

Inquiries to Ask When Shopping for a Used Automotive

1. What’s the automobile value?

First issues first: You’ll want to learn the way a lot the automobile you’re taking a look at is definitely value. In spite of everything, how will in case you’re actually getting a great deal on a used automobile in case you don’t know the automobile’s worth?

Fortunately, determining the worth of a automobile you’re eager about is very easy. Simply look it up on a reliable web site like Kelley Blue Book or Edmunds.

If the vendor or vendor is asking for extra than the automobile’s value, you don’t should stroll away instantly. As a substitute, attempt negotiating with them for a extra affordable worth. In the event that they received’t budge, merely transfer on and look elsewhere—you received’t lose something by making an attempt!

2. How outdated is the automobile?

Due to depreciation, which is what occurs when an asset (like a automobile) loses worth over time, you’ll want to understand how outdated a automobile is before you purchase it. Automobiles depreciate lots—a lot that the majority new automobiles lose 60% of their worth within the first 5 years.¹ So, in case you purchased a brand new automobile for $30,000 5 years in the past, it’s in all probability solely value about $12,000 now.

Be sure to do your homework and determine how outdated the automobile is earlier than you drive as much as the dealership or meet with that vendor from Craigslist. That means, you’ll know if the automobile’s worth continues to be in for a steep decline, or if many of the harm is already performed.

Plus, you should utilize the automobile’s age—and the way that make and mannequin loses worth over time—to your benefit to barter a greater worth.

3. What’s the automobile’s mileage?

Mileage issues. The common particular person drives 13,476 miles annually, and that provides as much as a number of put on and tear on automobiles.² Maintain that in thoughts whenever you’re making your choice.

Some automobiles can pack on a loopy variety of miles with out skipping a beat (what’s up, Honda). Others? Not a lot. As soon as you know the way outdated the automobile is and what number of miles are on it, you’ll be able to determine fairly shortly if the earlier proprietor ran the automobile into the bottom or solely drove it on Sundays.

4. Is there a automobile historical past report obtainable?

A automobile historical past report will provide you with some need-to-know data that’ll allow you to resolve whether or not this automobile is for you—together with accidents, open remembers, service historical past and the automobile’s earlier house owners. All of that may provide the higher hand with regards to getting a greater worth too.

You possibly can lookup a automobile’s report on-line (it simply takes a couple of minutes) or get one free of charge from most used-car sellers. You simply want the automobile identification quantity (VIN) or license plate quantity.

5. Are there any mechanical issues?

Earlier than you signal the dotted line and hand over a wad of money (and by the way in which, you need to solely pay cash for cars—no loans), you’ll need to be certain that the automobile is free from mechanical issues. The very last thing you need is to search out out every week later that the engine is leaking fluid.

You might look below the hood your self and test issues out. However except you’re a severe automobile nerd, it’s in all probability finest to depart this to an expert. Ask the vendor or vendor in case you can have a mechanic carry out a personal inspection to ensure every thing’s A-OK. If they are saying no, big-time purple flags ought to go up in your head.

Take it from Randy G., a member of our Ramsey Child Steps Group on Fb: “Finest cash I spent and ‘misplaced’ was the $200 I paid for a cell inspection of a used van I used to be going to purchase. This man drives out to the situation, does the inspection, after which takes me over privately, giving me the total report of every thing he can discover flawed. Saved me from losing $9,000 on a lemon Honda Odyssey, that are at all times extremely ranked.”

6. Is there any harm to the outside of the automobile?

We all know appears to be like aren’t every thing, however they nonetheless rely for one thing! Right here are some things to maintain a watch out for:

• Bodywork, paint job and automobile body: Look out for scratches, dents and rust on the floor of the automobile.
• Windshield, lights, rearview mirror and facet mirrors: Are there cracks on the windshield? Do the headlights appear foggy or discolored? Are the rearview and facet mirrors clear and dealing?
• Wheels and tires: Test every wheel for dents, and ensure they’re not bent. Check out the tires, too, to ensure they don’t must be changed before you purchase the automobile.

Whereas it’s extra vital to purchase a automobile that’s in fine condition below the hood, severe issues on the surface—like a rear bumper held collectively by duct tape or huge rust stains on the automobile door—can inform you lots about how the proprietor handled the automobile.

For much more recommendations on what to maintain your eyes peeled for when shopping for a automobile, take a look at our Ramsey Car Guide.

7. What does the inside of the automobile appear to be?

Now it’s time to climb in and go searching. In spite of everything, you’ll spend lots of time in there! Are there rips and tears from the household canine or espresso stains on the seats? Does it odor like an enormous ash tray? Are there burger wrappers littering the ground? These are all issues to consider and can inform you how properly (or how little) the automobile has been taken care of.

8. Can you’re taking the automobile for a check drive?

When you get a good suggestion of what the automobile appears to be like like, it’s time to see the way it feels. One of the best ways to do this is by taking a test-drive.

When you’re test-driving the automobile, pay shut consideration whenever you brake, change gears, and speed up. If one thing feels—or sounds—off to you, it’s in all probability finest to go on that automobile and begin trying in one other course. If potential, choose a route that features some tough roads with hills, bumps and potholes so you will get a good suggestion of how the automobile handles these circumstances.

9. Is the automobile below guarantee?

Having a souped-up guarantee plan isn’t as vital as you could assume, and shopping for an extended warranty from a used-car vendor isn’t a good suggestion. However you do at the very least need to know what you’re entering into with regards to a automobile’s guarantee standing.

When a dealership or personal vendor is promoting a automobile with no guarantee or “as is,” which means you’ll be on the hook for coping with any flaws or defects that want fixing when you drive it off the lot.

Right here’s some excellent news: Some used automobiles are nonetheless below the producer’s guarantee, which implies the producer or vendor continues to be on the hook for at the very least a number of the repairs and substitute components your automobile would possibly want.

10. How would this automobile influence my automobile insurance coverage premiums?

Whenever you change automobiles, don’t neglect about the way it would possibly influence your car insurance invoice. Should you’re delivering your hooptie for a a lot newer mannequin, your insurance coverage premiums will in all probability go up. That’s why it’s vital to determine precisely how a lot of a bump you’re in for.

One of the best ways to get a real estimate is to get in contact with an impartial automobile insurance coverage agent, like one in all our RamseyTrusted pros. They will store tons of corporations that can assist you discover the very best deal on insurance coverage in your new-to-you wheels. Attain out to one in all our trusted insurance coverage brokers at the moment.

Inquiries to Ask When Shopping for a Used Automotive From a Personal Vendor

Passing on a dealership and shopping for from a personal vendor—like somebody you discover on Fb Market or Craigslist—is a good way to get a greater deal on a used automobile. If that’s the route you select to go down, you’ll have to ask the vendor just a few further questions.

11. Why are they promoting the automobile?

Typically the very best factor you are able to do is ask the vendor this query, then stand again and allow them to do the speaking. This allows you to scope issues out, get to know the vendor, and, clearly, perceive the rationale they’re promoting the automobile.

Possibly their household simply welcomed their first little one and so they want an SUV as a substitute of that two-door coupe—their automobile loss is your acquire! But when they get away in a sweat or shortly change the topic, little purple flags ought to begin waving round in your head. The proprietor is likely to be making an attempt to chop their losses with a automobile that’s been giving them complications.

12. Have they got the title in hand?

Whether or not you’re shopping for from a personal vendor or a dealership, by no means drive off the lot or pay a single dime with out having the automobile’s title in hand. No title, no deal!

Make sure to truly take a look at the title, too, earlier than agreeing to purchase the automobile. If it’s marked as a salvage title, which means the automobile was deemed a complete loss and it’s unlawful to drive. If the automobile has a rebuilt title, which means it was beforehand totaled however has since been repaired in some type or style. Whereas there are some conditions the place it’s okay to purchase a automobile with a salvage or rebuilt title, you do have to know what you’re entering into.

13. How lengthy have they owned the automobile?

If somebody’s been driving their automobile for some time with out too many issues, it is likely to be an indication that the automobile is fairly dependable. But when somebody is making an attempt to promote a automobile after proudly owning it for under a yr or much less, they’re in all probability not proud of the automobile for some motive.

That’s not at all times the case, however you’ll want to dig a bit deeper to ensure the vendor isn’t simply making an attempt to unload their clunker on you.

Tips on how to Pay for a Used Automotive

There’s one different vital difficulty you’ll want to unravel earlier than shopping for a used automobile: the way you’ll pay for it. Now, you might get a mortgage, however that’s undoubtedly not the street you need to go down. It’s a very dangerous thought.

Why? As a result of, whenever you finance a car, you wind up with big-time funds and a big-time rate of interest. Don’t consider us? Let’s take a look at the numbers. The common used automobile mortgage within the U.S. is $27,167 with a month-to-month cost of $533, and the typical rate of interest for a used automobile mortgage is 11.35%.³ Gross! 

As a substitute of taking place that street and chaining your self to large funds, purchase a car you can actually afford with money. Put aside a bit bit each month in your funds, and earlier than lengthy, you’ll have sufficient socked away to write down a test in your automobile. No funds. No curiosity. No stress!

As you go about saving the cash in your subsequent automobile, EveryDollar will be your finest buddy. It’s our free budgeting app that allows you to arrange a funds in minutes, and it’s a good way to remain organized as you’re employed towards saving for a automobile or some other monetary aim—no debt needed.

Download EveryDollar today!