How to Buy a Pre-Owned Car

Evaluate the Car

1. Examine the exterior of the car.
2. Examine the interior of the car.
3. Examine the engine.
4. Test-drive the car.
5. Get the car inspected by a mechanic.

1. Examine the Exterior of the Car

• Sight the sides: Kneel down so your eyes are at the level of the door handles, and look down the length of the car. Any ripples or imperfections in the metal may indicate body or paint work done after an accident.
• Look closely for rust: Look for rust around the headlights, along the trim, on the fenders, and anywhere water might collect, such as where the trunk meets the body.
• Check the chassis: The chassis, or underside of the car, is vulnerable to corrosion from the salt used on roads to melt snow and ice in the winter. Make sure no portion of the chassis looks like it’s rotting or puckered.
• Check the glass: Look for even the tiniest cracks in all of the windows. Cracks in the front or rear windshield are particularly expensive to fix.
• Check the suspension: Stand up on the front and rear bumper, bounce, and then get off. The car should steady itself without rocking or bouncing up and down.
• Check for leaks: Get on your knees and look for spots or puddles on the asphalt under the car. Small water spots are fine, but beware if you spot black oil (a leak in the oil drain plug or engine), pink fluid (a transmission fluid leak), yellow-green fluid (an antifreeze leak), or gasoline (a leak in the fuel pump or tank).
• Inspect the tires: All tires should be the same size and type and have an equal amount of wear. Tires worn unevenly may indicate alignment or steering problems.

2. Examine the Interior of the Car

• Odometer: Make sure the mileage makes sense based on the car’s wear and tear as well as its age. Unusually low mileage may indicate tampering.
• Seat belts: Make sure the seat belts don’t stick or lock.
• Seats: Sit in each seat and try out all the adjustments, whether manual or power-operated. Seats should be firm and supportive. Replacements are expensive and tough to find, so make sure you’re comfortable.
• Locks and windows: Try out all the manual or power controls to confirm that they work smoothly.
• Steering wheel: Make sure the wheel doesn’t shift in any direction when the car isn’t running.
• Heating and cooling: No matter the temperature, test the air conditioning (if included) and the heat.
• Lights: Turn on all the external lights (fog lights, headlights, brights) and step outside to check them. Also make sure interior lights illuminate as they should.
• Gauges, dashboard controls, and wipers: Turn the car’s electricity on and make sure the gauges and controls respond and function normally.
• Sound system: Turn it on, play a CD, scan the radio dial, and so on to make sure the sound system works.
• Glove box: Make sure it has a working lock.
• Horn: Give it a blast to make sure it works.

3. Examine the Engine

With the Engine Off

• Surface flaws: Look for spots, rust, and dried stains on the engine. They can indicate, or cause, leaks.
• Belts, hoses, and wiring: Inspect these closely for looseness, softness, cracks, leaks, or fraying.
• Battery: Check for corroded terminals, acid deposits, and cracked or frayed cables.
• Oil and dipstick: Pull up the dipstick and rub some oil on your palm. The oil should not contain any solid particles. A low oil level may indicate poor maintenance or leaks. Any sign of water or grayish oil on the dipstick may indicate a cracked head gasket or cracked engine block—both serious and expensive problems.
• Filters: Ask how often the oil, air, and fuel filters have been replaced—the answer should be roughly every 3,000, 15,000, and 12,000 miles, respectively, if you’re dealing with a private party. Pre-owned dealers usually replace these parts just before offering a car for sale.

With the Car Running (In Park with the Emergency Brake On)

• Look at the engine: It should not shake or jerk.
• Unscrew the oil filter cap: Removing the cap should not cause rattling or clanking.
• Run the air conditioner: Listen for clanging and thumping, which can indicate expensive problems.

4. Test-Drive the Car

• Adjust the mirrors and check visibility: Make sure you can see clearly, especially out the back window and in the blind spots to your left and right.
• Drive very slowly at first: Check that the car rides smoothly and doesn’t pull to one side or wobble. Pull down the windows and listen for grinding, clunking, or other sounds that could signal problems.
• Test the brakes: Apply the brakes gradually at various speeds. Make sure the car stops in a comfortable distance and that no squealing, grinding, or pulling occurs. Repeat the brake test, but brake hard and fast.
• Check the steering: Drive through some tight curves to make sure the car doesn’t turn more (or less) than you expect when you move the wheel.

5. Get the Car Inspected by a Mechanic

• Uncover problems: A mechanic will detect issues that you would likely miss.
• Have an expert rate the car’s condition: An expert’s unbiased assessment can help you determine the actual value of the car. Ask the mechanic to rate the car’s condition as excellent, good, fair, or poor.

What If the Seller Won’t Allow a Mechanic’s Inspection?

Close the Deal

1. Check the car’s history.
2. Assess the car's actual value.
3. Negotiate with the seller.
4. Sign a contract and get the title.
5. Pay for the car.

1. Check the Car’s History

• Get the car’s vehicle identification number (VIN): All cars made since 1980 have a VIN, which allows you to access all the data regarding the car’s history. You can obtain the VIN from the seller or look for it on the car. It’s often printed on the edge of the driver’s door.
• Buy a vehicle history report: For $19.99, you can download from Carfax (www.carfax.com) a detailed history report for any vehicle with a VIN.
• Inspect the report: Look for any discrepancies between what the seller has told you about the car and what the report says, and discuss those discrepencies with the seller. If the seller can’t resolve your concerns, don’t buy the car.

2. Assess the Car’s Actual Value

• Mileage: Pre-owned cars are priced based on an average of 15,000 miles per year. Mileage that’s higher than average (based on the car’s age) lowers the price. Mileage that’s lower than average increases the price.
• Optional features: These include optional features the original owner chose at the time of purchase, plus later upgrades, such as a new stereo system. These features increase the price of the car.
• Condition: Most pre-owned car pricing services use four condition ratings: excellent (like new), good (no major issues or repairs required), fair (minor problems and several repairs needed), and poor (major problems, some unfixable).

Use Kelley Blue Book to Assess the Car’s Value

• Trade-in value: The amount of credit you could most likely get toward the purchase price of another new or pre-owned vehicle at a dealership
• Private-party value: The price you should expect to pay for the pre-owned vehicle if you’re buying it from a private party as opposed to a dealer
• Suggested retail value: The price you should expect to pay for the pre-owned vehicle if you’re buying it from a dealer

3. Negotiate with the Seller

• Assemble your evidence: Before you begin to negotiate, gather any documents that might support your case, such as the vehicle history report or a printout of the car’s KBBV appraisal.
• Don’t name a price first: If the seller asks what you’d like to pay before telling you his or her offer price, name a number well below what you’d actually agree to pay. If you tell the seller your upper limit right away, you’ll likely end up paying it.
• Maintain the upper hand: As the buyer—the party with the money—you have the upper hand from the start. Never let on that you’re desperate for the seller’s car. Doing so shifts the power to the seller.
• Ask for what you want: If you have specific concerns, such as repairs you’d like the seller to make before you buy the car, ask for them. The seller may offer to cut the price rather than perform the actual repair.
• Be fair and reasonable: Expect to pay the KBBV for the car or, at most, 10–15% below this price if the car has issues not addressed by the KBBV or if the seller is desperate to sell. Offering even less might upset the seller and make him or her wary of you.

4. Sign a Contract and Get the Title

5. Pay for the Car

• Cash: Dealers accept payment in full with cash or certified check—and often by credit card too.
• Financing: You pay the seller in full with a certified loan check from a lender. Auto loans usually have a 3- to 5-year term during which you make monthly payments to the lender to pay off the loan. At the end of the term, you own the car.