11 Tips for Buying a Used Car to Get the Best Vehicle for Your Needs

If you’re ready to take the plunge and buy a car, opting for a used car is a great option. A pre-owned car can offer a better deal since most new cars lose around 40 percent of their value in the first three years.

Searching for a used car that fits your needs can feel overwhelming, but the process will become easier with the right preparation and research. Taking time to define your budget, learn the total cost of owning a vehicle, understand financing options and know what to look for in a vehicle can save you time, reduce stress and help you avoid common pitfalls. Before you dive in, check out these tips for buying a used car to help you feel confident, informed and ready to find the right car at the right price.

1. Set a Realistic Budget

One of the first steps to buying a used car is determining a budget that fits your current financial situation. Start by reviewing your monthly income, expenses, and current savings to figure out how much you can comfortably spend without stretching yourself too thin. Be honest and realistic about what you can afford before you start browsing. This will help you set filters limiting you from seeing cars outside your reach.

Remember to include additional costs in your budget when buying a car:

• Down payment
• Inspection fees
• Car insurance
• Ongoing maintenance

If you’re looking for financing options, it will help to know your credit score and to get pre-approved for a loan from a private lender before you even start your search. This will give you a more concrete idea of what you can afford.

2. Research Your Options

Once you set a budget, it’s time to do some research. Start by making a list of your must-haves and browsing the internet for the best used cars that meet your budget and needs.

Think about how you will use your car and what features matter most. For example, if you plan to use this car for a daily commute that requires you to drive for a couple of hours a day, what would you need from your car to make you happy? This might include good gas mileage, comfortable seats and a nice sound system. Don’t forget to look into more technical aspects like mileage, age, service history, safety recalls and resale value.

Once you’ve found some options you like, remember that renting a car is a great way to try the make and model out for an extended period to see if you like it. This can help narrow down your options or help you discover an option you hadn’t really considered.

3. Make a List of Vehicles That Fit Your Needs

With all the models side by side, dig deeper into details like fuel economy, safety ratings and consumer reviews. Also, think about your future plans to inform your decision-making process. For example, you should consider an SUV if you need a vehicle with more space for various summer activities. However, a sedan might be a better option if you don’t need the extra room.

In the end, you should have a reasonable list of car models that work for you and your future plans. This will make the process of going to see cars much more manageable.

4. Decide Where You Want to Buy From

Who you buy from will affect the price of your car, warranties and peace of mind. Explore your options to see what fits your budget and what will give you the best experience.

The four main seller options you will find are:

• Private seller: This is usually the most affordable option because you buy directly from a person, not a business. Although you might get a better deal, there are some drawbacks. For example, you won’t get any financing options, and this type of sale can be risky because it comes with limited protections and warranties — if any. You must also be diligent about getting a bill of sale and getting the title transferred properly.
• Online retailer: Buying a used car from an online retailer, like Carvana, is tempting because it is a convenient option. You can browse cars at your convenience, and there are usually more options online than what’s available locally. Purchasing a used car online also means you get to skip the intimidating in-person experience at the dealership. There are some downsides to this option, like not being able to inspect the car in person, not having the option to test drive the car and not being able to negotiate the price. Depending on who you buy the car from, you might have a short window during which you can return the car. If this is the case, get the car inspected before your return period ends.
• Non-certified pre-owned dealership: This will often be more expensive than a private seller, but a dealership can offer you customer service, vehicle history records, test drives and financing options. These can range from the independent car dealership down the road to a well-known chain like CarMax. Do your research on the dealership before going in to be sure they have good reviews from buyers.
• Certified pre-owned dealership: This is the most expensive option, but these cars tend to be two to four years old, have low mileage and feel like new. The cars are thoroughly inspected and serviced, and usually include solid warranties and better financing options. Certified pre-owned cars are only available through dealerships authorized by the original manufacturer. So if you’re looking for a vehicle from a specific brand, you’ll have to go to that brand’s dealership.

5. Determine the Vehicle’s History

Once you have a vehicle you’re seriously considering, request a CARFAX report to investigate its history. A thorough report like the ones offered by CARFAX will reveal whether the car has been in any accidents, its ownership history, maintenance records and important title information.

Don’t just take the seller’s word because what looks good on the outside might be hiding issues that affect the car’s performance and longevity. Taking this necessary step now can give you the peace of mind to move forward confidently.

6. Have the Vehicle Inspected

Getting a vehicle history report is a good start, but you’ll need a more hands-on inspection to ensure the car is in the condition the seller claims. Don’t be afraid to ask if you can take the car to your trusted mechanic for an inspection. Most car dealerships won’t have a problem with this.

If you don’t have a trusted mechanic, you can find a AAA Approved Auto Repair Facility to get this task done with confidence. After getting the car inspected, get a written report from your mechanic. Ensure it includes any fixes the car needs and estimates how much the work will cost. Take this information to the dealership to negotiate a better price if you still want the car.

If your inspection shows you need to replace parts on the vehicle, you can use a AAA Member discount at NAPA Auto Parts to get what you need at a lower cost.

7. Take the Car Out on the Road

After getting the vehicle inspected, take the car out for a test drive. Call ahead to ensure availability and make a checklist of what you want to test. Take a pencil with you to write down your observations so you can come back to them later.

Plan a route with different road types to test how the car handles at different speeds and how it performs on different surfaces. If you’re a fan of staycations, take the car to a local place you visit frequently to see how it does on the ride there.

Take a friend to help you stay focused, and take any items you want to test in the car, like child car seats.

Before taking off, inspect:

• The exterior: Look for dents, scratches and rust.
• The interior: Inspect for torn seats, stains and sticky knobs or pedals.
• The tires: Check the tire tread to ensure it’ll still last you a good while.
• Under the hood: Search for signs of leaks and other issues.

As you turn the car on and drive, listen for odd sounds and test features like the windows, wipers and sound system.

8. Look for Fuel Efficiency with Good Mileage

Before purchasing a car, dig into crucial information about gas mileage for that specific make, model and year. Manufacturers release a lot of information about their vehicles, but you can also find valuable reviews from car owners and third-party automotive research reports.

Sign up for a fuel rewards program to save money on gas and reap additional benefits at the pump. Some great options include the Fuel Rewards Program® at Shell and Love’s — these offer additional benefits for AAA members.

9. Talk to Your Insurance Company

In most cases, before you can drive away in your new car, you’ll need to get it insured. It’s important to get an estimate from your insurer before taking the plunge because rates can vary based on the make and model of the car you’re considering. If you already have a car insurance policy, talk to your agent about getting a new car added to your policy. If you don’t have an insurance provider, shop around and get estimates for the specific make and model you want to insure.

Your car insurance premiums can be affected by personal information, like your credit history and driving record, but did you know that the make, model and year of your car, along with additional features, can also affect your premium? 

For example, cars that are harder to repair or have lower safety ratings can be more expensive to insure because the insurer can pay more for repairs and bodily harm if the car is in an accident. If you're looking for coverage, consider AAA's insurance options.

10. Review Financing Options

A lot of car dealerships will offer their own financing plans, but take your time researching this. Look for financing options from other trusted lenders who may have a better rate than the dealership.

It’s better to go into a dealership pre-approved by another lender so you know your options. If the dealership is being pushy about its financing plans, take a step back and don’t let them pressure you into signing anything right away. You can also show them your pre-approval and see if they’re willing or able to match the rates others offered you.

If you manage to work out a deal with the dealership, be sure to re-read your final contracts to ensure they reflect the deal you worked out. Ask all the questions you need to ask before signing, and take your time. If you're considering financing, be sure to check out AAA's financing options.

11. Know Your Rights as a Buyer

Buying a used car can be stressful, but understanding your rights makes it easier. If you’re buying from a dealer (someone selling more than five used cars a year), you're protected by the Used Car Rule, which requires a visible Buyer’s Guide on the vehicle. This guide outlines warranty and purchase details.

Still, ask the dealer about any warranties and get them in writing. Certified pre-owned cars may still have manufacturer warranties, so confirm that too. Also, check your state’s lemon laws to see what protections apply.

Knowing your rights and asking the right questions will help you feel more confident at the dealership.

Use These Tips for Buying a Used Car to Help You Find a Vehicle Today

With these tips for buying a used car, you’ll be better prepared to start your search. There might be some luck involved in finding the perfect car at the right price, but doing your research will play a big part in that.

Once you’ve purchased your car, consider a AAA Membership for additional discounts on your car essentials, like gas, car parts and other services.

FAQs on Tips for Buying a Used Car

Find answers to the most commonly asked questions about buying a used car.

What’s the most important thing to look for when buying a used car?

The vehicle history report is one of the most important things to look for when buying a used car. This report is a great place to start because it gives you insight into any accidents, how well the car’s been maintained, and whether there are any title issues.

If possible, you should also inspect the vehicle in person to ensure it matches the seller's advertising.

What are the benefits of buying a used car?

The primary benefit of buying a used car is the money you can save from a gently used car instead of a brand new one.

Since new cars depreciate quickly, buying used can be a better investment. On top of this, a used car will often result in lower insurance premiums compared to a new car, helping you save even more. There are also more cars to choose from, and many certified pre-owned vehicles still have their warranties in effect, giving you the new car experience without the higher price tag.

Having a used car can be helpful when moving or if you’re looking to save money on travel, so you’re not worried about accumulating mileage or adding wear-and-tear to a brand-new car.

What should I know before buying a used car?

Before buying a used car, it’s essential to know its history. Regardless of who you’re buying from, always ask for a vehicle history report so you’re certain you’re getting the most accurate information.

A comprehensive report like the ones CARFAX offers will give you details about accidents the car has been in, repairs it’s had, maintenance records, and title information. With this information out in the open, you won’t have to worry that the seller is hiding something from you.