‘My Favorites Cars’ Special Guide: How to Buy a Used Car

Purchasing a new vehicle can be expensive, and the prospect of depreciation can make it even harder to justify. Many shoppers turn to the used-car market, which offers various cheaper choices. However, buying a used car comes with its own set of challenges. Research, caution, and a solid market understanding are crucial to successful purchases. In this guide, we’ll walk you through the critical steps and considerations involved in buying a used car so you can make an informed decision and protect your investment.

Is a Used Car Right for You?

The decision to buy a used car is often driven by financial considerations. Since used vehicles are more affordable than new ones, they appeal to budget-conscious shoppers. However, there are other advantages as well. Nearly-new cars—only a year or two old—can save you thousands of dollars compared to buying the latest model. They may still be under warranty, giving you additional peace of mind.

That said, the used-car market has changed in recent years. Due to supply chain disruptions during the COVID-19 pandemic, used car prices soared and remain high. Inflation, trade restrictions, and global conflicts have all contributed to sustained demand and higher prices. Despite these challenges, careful shopping and a solid understanding of the process will help you find the right vehicle at the right price.

Certified Pre-Owned: Worth the Extra Cost?

One popular option for used-car shoppers is certified pre-owned (CPO) vehicles. These cars are typically two to three years old, have low mileage, and have a manufacturer-backed warranty. In addition to being thoroughly inspected by factory-trained mechanics, CPO cars often offer the same peace of mind as new cars without the steep price tag.

While CPO vehicles are more expensive than their non-certified counterparts, the extra cost can be worth it. You’re getting a lower-mileage car, a warranty, and often a vehicle-return policy. This protection can make the added expense worth it, especially for buyers wary of unexpected issues. However, it’s important to understand the specific terms of the CPO program, as they vary among manufacturers. Some automakers offer more comprehensive warranties and return policies than others.

Where to Buy a Used Car

The rise of online shopping has transformed the way people buy used cars. There are now more options than ever, including traditional dealerships, online-only retailers, and private sales. Each option has advantages and drawbacks, so choosing the one that fits your preferences and comfort level is essential.

Dealerships: A dealership is often the best place to start for buyers looking for certified pre-owned vehicles. Many dealerships offer both in-person and online sales and provide the added benefits of warranty coverage, financing, and trade-in options. Visiting a dealership may be the best route if you prefer face-to-face interaction and the ability to see and test-drive the car before committing.

Online Retailers: For those who prefer shopping from the comfort of home, online used-car retailers offer convenience. Websites like Carvana, Vroom, and Shift allow you to browse inventory, secure financing, and arrange trade-ins from your computer or phone. These platforms often offer a return policy, providing added security for buyers. However, you won’t have the opportunity to test-drive the vehicle until it arrives.

Private Sales: For buyers looking to save money, purchasing a used car from a private seller can be a good option. Websites like Craigslist or Facebook Marketplace allow you to find vehicles directly from individual sellers. This method requires more legwork, as you must arrange inspections and handle the paperwork yourself. Private sales also come with higher risks, so it’s crucial to thoroughly research the car’s history and condition.

Choosing the Right Used Car

Once you decide to buy a used car, the next step is narrowing down your choices. Start by determining your budget. It’s important to set a price range that’s affordable and realistic for your financial situation. Remember that a used car’s price can vary depending on age, mileage, and condition.

After establishing your budget, consider the type of vehicle that best suits your needs. Do you need a fuel-efficient commuter car, a family-friendly SUV, or a durable tow truck? Narrowing down the type of vehicle you want will help streamline your search. Once you’ve chosen a category, focus on specific makes and models with a reputation for reliability and value.

As with any used-car purchase, there are risks. Older vehicles or cars with high mileage may require more frequent repairs, and cars purchased from private sellers typically don’t come with warranties. Additionally, buyers with less-than-perfect credit should be cautious about predatory “buy-here, pay-here” dealers, who may offer high-interest loans with unfavorable terms. Taking your time, researching, and inspecting the vehicle thoroughly will help minimize these risks.