How to Buy a Great Used Car

Buying used can be a great deal if you play it smart.

Most three- or four-year old cars and trucks can be surprisingly reliable because automakers have done so much to improve the durability of every model.

They cost a lot less, too -- an average of $14,925, or just a little more than half as much as the typical new vehicle.


But buying used can be an expensive and tragic game of rush-in roulette if you're too hasty.
You don't want to overpay, get a vehicle that's been abused, crashed or dunked in a flood, dried out and shipped off to be sold to the gullible.
Let our 10 smart moves increase the chances your "new" used vehicle will be a great purchase:

Smart Move 1. Although the reliability of all vehicles has improved over the last decade, some are better than others. Take the time to check out the model you are considering.
Two sources of reliability information are Consumer Reports magazine's April auto issue, available in the library or through the Consumer Reports Web site, and J.D. Power and Associates, an independent research company that polls buyers about their cars and trucks.
Think twice before buying a model that has significantly more problems than average, especially if major mechanical components such as the engine or transmission are prone to breakdowns.

Smart Move 2. Insist on taking the vehicle to an independent mechanic for an examination, something any reputable seller should allow. If the seller refuses, walk away.
Make sure the mechanic examining the vehicle is familiar with the brand and has some kind of certification of expertise from a group such as the National Institute for Automotive Service Excellence or ASE. This checkup could cost $100 to $200 (get the price first), but that's cheap compared to finding out too late about serious problems.

Smart Move 3. Check the history of the vehicle through a service such as Experian's AutoCheck or Carfax. For about $20 you can use the vehicle identification number (VIN) to see in which state the vehicle was purchased and whether it has been registered in other states. Such checks are not perfect but they may alert you if the vehicle was in a serious crash or other mishap such as a flood.
If you are buying from a dealer, insist that the dealer provide you with such a report for free and carefully compare the VIN number on the vehicle with that on the report to make sure they are the same.

Smart Move 4. If saving money is your priority, then you should try to buy from an individual rather than a new car dealer.
When you've found one you like, use Edmunds.com or Kelley Blue Book to find out how much it's worth.
Their calculators will ask for lots of information about the car or truck, from the make and model to its mileage and optional equipment. In the end you'll be given three values. The lowest is what the car would be worth as a trade in, or being sold by an individual, or by a new-car dealer.
The "private party" price is always lower than the dealer price because there's more risk. You won't get a warranty (unless some of the original factory warranty remains) and some naughty people sell cosmetically reconditioned wrecks to bargain hunters just like you.

Smart Move 5. If reliability is most important to you, and you are willing to pay extra for the peace of mind it provides, go to a new-car dealer and buy a certified used vehicle.
Certified vehicles are supposed to undergo rigorous inspection and testing by dealership mechanics before being resold. They typically have fewer miles and cosmetic problems too, and come with some type of warranty, though such agreements can vary considerably.
But that will raise the purchase price by an average of $1,680, according to J.D. Power and Associates.

Smart move 6. Check for a warranty. The Federal Trade Commission requires dealers to place a "Buyer's Guide" on the vehicle that tells whether the vehicle has a warranty and what that warranty covers.
If there' no warranty, the "Buyer's Guide" must be marked "as is." That means you take your chances.
Get any promises in writing. Verbal promises don't carry any weight in a dispute. Pull out paper and pencil anytime a salesperson says, "We'll fix anything that goes wrong."
Some newer vehicles may have part of the original manufacturer's warranty in effect. This will be particularly true when '07 models begin to be resold because several automakers began offering longer warranties this model year.
Just remember, parts of that warranty could be voided if the previous owner didn't do all the proper maintenance, so pay attention to the next recommendation.

Smart move 7. Ask the dealer or private owners for service records. Ask the dealer if the original owner bought the vehicle at the dealership. Then, ask if the owner had it serviced at the dealership. If the answer is yes, ask for the service records.
If the dealer balks claiming there is a privacy issue, ask him or her to contact the previous owner and get permission, or to simply cross out the previous owner's name and address before showing the records to you. If the dealer refuses or a private owner says he doesn't have the records, go elsewhere.

Smart move 8. Don't rush into a deal. You do not have three days to return a vehicle and get your money back. That's a common misperception. To see if your state gives you any special rights as a used-car buyer go to state attorney general's web site and check under consumer protection.

Smart move 9. If you're buying from a new-car dealership, check its reputation with the Better Business Bureau and your state's attorney general. Ask friends and family if they know anybody who has had a good -- or bad -- experience.
Be particularly wary of independent used-car lots. It's even more important to verify their reputation before you buy.

Smart move 10. Safety is important. Favor cars and trucks that offer such lifesaving features as anti-lock brakes, side-curtain air bags and electronic stability control, which automatically tries to correct for a skid.
Also, check out how well the vehicle did in crash tests. The most demanding tests available to the public are done by the Insurance Institute for Highway Safety. Think twice before buying a model that scored poorly on two or more of the institute's tests.
Dealers that sell and service the brand of vehicle you're considering can use the vehicle identification number to determine if your car or truck has ever been recalled for a safety defect, and if it the repairs were made.
This isn't a deal breaker. Automakers must fix safety problems for free, no matter who owns the vehicle or how long ago the recall was issued. But you should know what repairs are needed, and be prepared to get them done, before you buy.

By Chris and Cheryl Jensen
Interest.com Contributing Editors