Buying a used car can be a great way to save money, but you need to check several key factors to avoid costly mistakes. Here’s a step-by-step checklist to help you make a smart purchase:
1. Set a Budget & Research the Car Model
Determine how much you can afford, including insurance, maintenance, and repairs.
Research reliable models and their average market price on sites like Kelley Blue Book (KBB) or Edmunds.
Check fuel efficiency, safety ratings, and common issues with that model.
2. Check the Car’s History Report
Get a CARFAX or AutoCheck report using the VIN (Vehicle Identification Number).
Look for accidents, service records, title issues, and odometer fraud.
Avoid cars with salvage, rebuilt, or flood-damaged titles.
3. Inspect the Exterior & Interior
Exterior: Look for dents, scratches, rust, or mismatched paint (could indicate repairs).
Tires: Ensure even wear; uneven wear might indicate alignment issues.
Interior: Check seats, dashboard, carpets, and electronics (radio, A/C, windows, lights).
Trunk & Undercarriage: Look for rust, water damage, or signs of accidents.
4. Check Under the Hood
Oil: Dirty, low, or burnt-smelling oil can indicate neglect.
Coolant & Transmission Fluid: Low levels or dirty fluid can signal problems.
Belts & Hoses: Cracks or wear may lead to costly repairs.
Leaks: Look for oil, coolant, or transmission fluid leaks under the car.
5. Test Drive the Car
Engine Start: It should start smoothly without odd noises.
Acceleration & Brakes: Ensure smooth acceleration and responsive braking.
Steering & Alignment: The car shouldn’t pull to one side or vibrate.
Transmission: Shifting should be smooth (manual or automatic).
Dashboard Lights: No warning lights (check engine, ABS, airbag, etc.).
6. Verify Mileage & Compare with Condition
Average usage is 12,000–15,000 miles per year.
If the mileage is unusually low or high, ask why.
Compare mileage with wear and tear (e.g., a low-mileage car with a worn-out interior may have an altered odometer).
7. Get a Mechanic Inspection
Have a trusted mechanic perform a pre-purchase inspection to catch hidden issues.
This can cost $100-$200 but may save thousands in repairs.
8. Negotiate & Finalize Paperwork
Use your findings (inspection, market price, history report) to negotiate a fair price.
Ensure the seller provides:
Title (Clean, No Liens)
Bill of Sale
Maintenance Records
Smog/Emissions Test (if required in your state)
Avoid buying a car without a clear title in your name.