Getting the Best Deal on a Used Car

For millions of cash-strapped motorists these days, buying a used vehicle, rather than a brand-new car or truck, is an option based on sheer necessity. While the average transaction price of a new vehicle topped $26,000 last year, according to CNW Research of Bandon, Ore, the cost of a used model was just under $10,000 from a franchised auto dealer and around $5,600 from a private party.

However, procuring a used vehicle remains a much-more complex transaction than is buying a typical new-car or truck. For starters, no two used vehicles – even if they’re the same year, make and model – are ever alike, especially with regards to their mileage and mechanical conditions. Also, unlike a new car, a used one doesn’t come with a manufacturer’s suggested retail price – a pre-owned model’s value is ultimately decided by the buyer and seller, and can depend on a wide range of variables.

If the economy is forcing you to shop for a used vehicle, rather than a new one, here are a few time-honored tips to follow that will ensure you’ll get the best deal on a great car or truck:

• Always research the estimate value of all makes and models you’re considering ahead of time, via a pricing service like kbb.com or NADAguides.com. Here you’ll find a given vehicle’s trade-in value, which is generally what the dealer pays for a used car, and its retail price, which is what the dealer will initially ask for a car on the lot. Assume you’ll pay an amount that’s somewhere between the two figures. Since these estimates are based on a vehicle’s condition, mileage and included features, indicate (at least for comparison purposes) that each model is in “good” condition, is modestly equipped and has been driven at least 12,000 miles per year.

• If you’re looking at a used car that’s only a year or two old, be sure to compare the cost against buying a comparable new model. Automakers are luring buyers with generous cash incentives that can total thousands of dollars per vehicle to help dealers pare their inventories. Car companies offered buyers an industry-wide average $3,169 per vehicle in incentives this past March, according to Edmunds.com, which typically take the form of cash rebates or low-rate financing (with some models offering both). Various brands are also picking up a buyer’s first few monthly payments or are promising to pay the tab for several months if an owner loses his or her job. Depending in the make and model, a given new car might cost as much or less than a late-model used version, particularly considering the higher financing rates and shorter loan terms for pre-owned vehicles.

• To guarantee that a sweet deal on a used car or truck won’t ultimately go sour, be sure to take any vehicle under your consideration (especially one that doesn’t come with a warranty) to a trusted mechanic to ensure that it’s mechanically sound. And be sure to run the car or truck’s vehicle identification number (VIN) through a title-searching service like carfax.com to make sure it hasn’t been previously flood-damaged or salvaged and subsequently rebuilt.

• Always take a used car or truck out for a thorough test drive to ensure that all of its systems are in working order and that it sufficiently meets your needs and expectations before signing on the dotted line. Buying a vehicle that you ultimately won’t be happy with is no bargain.

• Negotiate wisely. Unless you’re buying a used car from a “CarMax” type of dealership that doesn’t allow haggling, never pay the asking price. Negotiate the transaction price as close to a used car’s average trade-in value as possible (be sure to research these figures a second time once you know the specific model’s exact mileage, condition and added equipment). The ultimate transaction price will largely depend on the dealership or private party’s urgency to sell the car, coupled with your own patience and haggling skills.