How to Buy a
Used Car
Everything you need to find a reliable used car at a fair price, avoid common pitfalls, and negotiate like a pro.
10-20%
Typical negotiating room
2-4 yrs
Best value sweet spot
$100-200
PPI cost (saves thousands)
Research & Set Your Budget
Before you start shopping, know exactly what you can afford and what you need. A used car often offers much better value than new, but only if you buy smart.
Purchase price
Set a maximum and stick to it
Insurance
Get quotes before buying (can vary 2-3x)
Maintenance
Older luxury cars have expensive parts
Fuel costs
Calculate based on your commute
Repairs buffer
Budget $500-1,000 for unexpected fixes
Taxes & fees
Sales tax, title, registration
💡 Pro Tip
The best value in used cars is typically 2-4 years old. The car has already taken the biggest depreciation hit (new cars lose 20-30% in year one) but is still modern with current safety features.
Where to Buy: Dealer vs Private vs CPO
Dealer
✓ Financing available
✓ Trade-in accepted
✓ Some buyer protections
✗ Higher prices
✗ Upselling pressure
Best for: Convenience seekers, financing needs
Private Seller
✓ Lower prices
✓ Direct negotiation
✓ No dealer fees
✗ No warranty
✗ More risk, no financing
Best for: Budget buyers, experienced negotiators
CPO (Certified Pre-Owned)
✓ Manufacturer warranty
✓ Multi-point inspection
✓ Lower risk
✗ Higher prices than regular used
✗ Limited selection
Best for: Peace of mind seekers
Online (Carvana, Vroom)
✓ No haggling
✓ Home delivery
✓ Return period
✗ Can't inspect before buying
✗ Potential delivery delays
Best for: Remote buyers, those who hate negotiating
Always Check Vehicle History
Never skip this step.
A vehicle history report reveals accidents, title issues, odometer rollbacks, and service history that sellers may hide. This $30-50 investment can save you thousands.
What to Look For
- ✓Number and severity of accidents
- ✓Title status (clean, salvage, rebuilt)
- ✓Odometer readings over time
- ✓Number of previous owners
- ✓Service history records
- ✓Open recalls
Red Flags
- ✗Salvage or rebuilt title
- ✗Multiple accidents
- ✗Odometer discrepancy
- ✗Flood or fire damage
- ✗Lemon law buyback
- ✗Many owners in short time
Pro tip: Get reports from both Carfax and AutoCheckif possible—they pull from different databases and may show different information.
Inspect the Car Thoroughly
Even with a clean history, inspect the car in person. Many issues only reveal themselves upon close examination.
exterior
- □Check for rust on body, undercarriage, wheel wells
- □Look for paint color mismatches (indicates repair)
- □Check panel gaps for evenness
- □Inspect all glass for chips/cracks
- □Check tire tread depth and wear pattern
- □Look for fluid leaks underneath
interior
- □Test all power windows and locks
- □Check A/C blows cold, heat works
- □Test all lights, signals, wipers
- □Check for water damage (stains, musty smell)
- □Inspect seat condition and adjustments
- □Test infotainment system, Bluetooth
Under the Hood
- □Check oil level and color (dark = old)
- □Check coolant level and condition
- □Look for corrosion on battery
- □Check belts and hoses for cracks
- □Look for signs of leaks or repairs
mechanical
- □Engine starts smoothly, idles evenly
- □No warning lights on dashboard
- □Transmission shifts smoothly
- □Brakes feel firm, no grinding
- □Steering is responsive, no pulling
Always Get a Pre-Purchase Inspection (PPI)
Pay $100-200 for an independent mechanic to inspect the car before you buy. They'll catch problems you might miss and can save you thousands. Never skip this step, especially for private sales. Any seller who refuses is hiding something.
Test Drive Like a Pro
A proper test drive should be at least 20-30 minutes and include highway, city streets, and parking. Here's what to evaluate:
Engine & Transmission
- • Smooth acceleration
- • No hesitation or jerking
- • Clean gear shifts
- • No unusual noises
Brakes & Steering
- • Firm brake pedal
- • No pulling to one side
- • No vibration when braking
- • Steering responds immediately
Comfort & Noise
- • Listen for rattles, squeaks
- • Check visibility all around
- • Test highway road noise
- • Verify A/C cools at idle
Negotiate the Best Price
Unlike new cars with MSRP, used car prices are highly negotiable. Expect to save 10-20% off the asking price with good negotiation.
Negotiation Strategy
Know the market value
Check KBB, Edmunds, and similar listings in your area
Use issues as leverage
Point out any flaws found during inspection
Start low but reasonable
Offer 10-15% below asking price
Be willing to walk away
Your strongest negotiating tool—sellers often call back
Get the out-the-door price
Make sure to include all fees and taxes in your negotiation
Cars sitting 30+ days have more room
Dealers pay to hold inventory. The longer a car sits, the more motivated they are to sell. Check listing dates and use this as leverage in negotiations.
Complete the Purchase Safely
📄Required Documents
- ✓Vehicle title (signed by seller)
- ✓Bill of sale
- ✓Odometer disclosure
- ✓Release of liability
- ✓Vehicle history report
- ✓Maintenance records (if available)
💳Payment Safety
- ✓Meet at bank for cashier's check
- ✓Never wire money in advance
- ✓Verify title is clean with DMV
- ✓Get receipt for any cash payment
- ✓Transfer title same day if possible
Red Flags to Walk Away From
Frequently Asked Questions
What should I check when buying a used car?
Check the vehicle history report, inspect for body damage and rust, test all electronics and A/C, look for uneven tire wear, check fluid conditions, look under the car for leaks, and always get a pre-purchase inspection from an independent mechanic.
How much can you negotiate on a used car?
You can typically negotiate 10-20% off the asking price, depending on how long it has been on the lot, its condition, and market demand. Cars listed for 30+ days often have more room.
What mileage is too high for a used car?
Modern cars can easily last 200,000+ miles with proper maintenance. Average is 12,000-15,000 miles per year. Focus more on maintenance history than mileage alone. A well-maintained 100,000-mile car can be a better buy than a neglected 50,000-mile one.
Is it better to buy from a dealer or private seller?
Dealers offer financing and some protections but charge more. Private sellers offer lower prices but no warranty. CPO programs offer the best of both with manufacturer backing at a premium price.
Should I always get a pre-purchase inspection?
Yes, absolutely. A PPI costs $100-200 and can reveal hidden problems that save you thousands. Any seller who refuses is a major red flag—walk away.
Ready to Shop for a Car?
See what others are paying for similar vehicles with our verified deal database. Compare prices before you negotiate.