Four Essential Steps for Purchasing a Used Vehicle

Four Key Strategies for Buying a Used Vehicle

Keep reading for helpful tips.

Financial Planning
A general guideline suggests that if you’re financing a used car, your monthly payments should not exceed 25% of your net income. Used vehicles often offer more affordability, helping you stay within your budget.

Nevertheless, it’s important to consider ongoing costs like maintenance, fuel, and insurance. Choose a used vehicle that comfortably fits within your financial limits of 25% of your income.

Build a List of Potential Vehicles
Car prices vary depending on make and model, with differences of a few thousand dollars. Create a shortlist of multiple models from different brands. Auto experts recommend narrowing down your options to three vehicles within your budget, comparing their specifications, age, mileage, and overall condition to pick the best fit.

If you plan to buy a car less than five years old, consider certified pre-owned (CPO) options for added reliability.

Review Vehicle History
After selecting your preferred models and contacting sellers, obtain a vehicle history report. This document can help you make informed decisions and prompt you to change your choice if the vehicle has a poor history. Resources like AutoCheck and Carfax provide detailed reports based on the vehicle identification number (VIN) or license plate.

Perform a Test Drive
Test-driving is crucial in determining if a car suits your needs. Pay attention to comfort factors, like seat position, and evaluate engine performance. Inspect the engine bay for electrical and mechanical integrity. Check how the vehicle responds during acceleration and gear shifts. For a thorough assessment, consider having an experienced mechanic conduct a pre-purchase inspection, which may cost a few hundred dollars but can identify hidden issues.