The Dos and Don'ts of Buying a Used Car
January 24, 2025
7 min read
Buying a pre-owned car isn’t just about saving money—it’s about making a smart financial move that can work in your favor. Unlike new cars that lose a chunk of their value the moment they leave the lot, used vehicles let you skip the steep depreciation and land a great deal instead. Plus, with so many reliable pre-owned options out there, finding a car that fits your budget and lifestyle is easier than ever.
Maybe your current ride isn’t cutting it anymore, or you need an extra set of wheels for your family. Whatever the case, buying used can give you the most value for your money—if you know how to shop wisely. So, how do you navigate the world of used car shopping and walk away with a ride that’s priced fairly and performs reliably? That’s exactly what we’re diving into. Let’s get started!
The Do’s of Buying a Pre-Owned Car
When shopping for a used car, there are certain steps you can take to ensure a smooth, successful purchase. Here’s how to do it right:
1. Make a Game Plan
- Set a realistic budget and stick to it.
- Decide on the make, model, and features that fit your needs (e.g., family SUV, commuter sedan, or AWD for harsh weather).
- Narrow down a list of automakers and models you trust.
2. Look for Used Car Deals and Compare Prices
- Research pricing online to establish a baseline for negotiations.
- Check out multiple dealerships or private sellers to find the best deal.
- Use reviews and word of mouth to identify trusted dealerships.
3. Take a Test Drive
- Test how the car handles on highways, city streets, and during parking maneuvers.
- Inspect seating, visibility, and overall comfort.
- Check all features, from cruise control to air conditioning and heating.
4. Get a Vehicle History Report
- Use services like CARFAX to check for salvage titles or past accidents.
- Verify maintenance records to ensure proper care.
- Cross-check the VIN number to confirm the vehicle’s identity and history.
5. Bring a Buddy or Trusted Mechanic
- A second pair of eyes can spot issues you might miss.
- A mechanic can assess the car’s mechanical health if you're not confident inspecting it yourself.
The Don’ts of Buying a Pre-Owned Car
Avoid these common mistakes when shopping for a used car to prevent future headaches:
1. Don’t Rush the Process
- Take your time researching and comparing options.
- Avoid impulse purchases, even if the car looks perfect.
- Remember: The car market is constantly replenished, so there’s no need to hurry.
2. Don’t Let Emotions Dictate Your Decisions
- Avoid making a purchase out of guilt, fear, or pressure from salespeople.
- Stick to your budget and plan, even if you’re offered incentives.
- Shop with someone who can help you stay logical.
3. Don’t Skip the Test Drive
- A car might look great on paper but handle poorly on the road.
- Failing to test features like brakes, lights, or windows can lead to regret later.
4. Don’t Ignore Red Flags Under the Hood
- Neglecting to check fluid levels, hoses, and belts can result in costly repairs later.
- Always ask for a mechanic’s opinion if you’re unsure about the car’s condition.
- Avoid vehicles with unresolved recalls, salvage titles, or reported accidents.
Understanding Warranty Options for Used Cars
Buying a used car doesn’t mean sacrificing peace of mind, as warranties can provide an extra layer of protection to help you feel secure.
1. Dealer-Supported Warranties
Certified pre-owned (CPO) cars often include manufacturer-backed warranties, which cover repairs for a set period or mileage. These warranties ensure you’re not hit with unexpected repair bills soon after purchasing the car. CPO warranties also provide additional perks, like roadside assistance and vehicle inspections, for added confidence.
2. Extended Warranties
Extended warranties, often purchased from third-party providers, cover major repairs after the original warranty expires. These can be tailored to your specific needs, such as drivetrain or powertrain coverage. Providers like CarShield or Endurance offer plans for a variety of vehicles, so it’s worth comparing them to find the best fit.
3. Understanding the Fine Print
Always read the terms and conditions carefully to know what’s covered and excluded. Some warranties might cover only mechanical parts, while others include electrical systems. Ask about deductibles, claim processes, and authorized repair shops to avoid surprises when it’s time to use your coverage.
Financing a Used Car Wisely
Having a sound financing strategy ensures your used car purchase stays within budget.
1. Research Loan Options
Compare interest rates from banks, credit unions, and dealerships to secure the best deal. Pre-approval from a bank or credit union can give you an edge in negotiations and streamline the car-buying process. Online lenders, such as LightStream or Capital One Auto Finance, are also worth exploring for competitive rates.
2. Know Your Credit Score
Your credit score has a direct impact on the interest rate and loan terms you qualify for. A higher score can unlock lower rates, saving you thousands over the life of the loan. If your credit score isn’t ideal, consider improving it by paying down existing debts or disputing errors on your credit report before applying.
3. Avoid Long Loan Terms
While extended loan terms lower monthly payments, they often increase total interest costs. Aim for a loan term of 36 to 60 months to strike a balance between affordable payments and minimized interest expenses. Long-term loans can also result in negative equity, where you owe more than the car is worth.
Insurance Considerations for Pre-Owned Cars
Protecting your investment with the right insurance is essential when buying a used car.
1. Compare Providers
Shop around for quotes from multiple insurance companies to find the most affordable rates. Use comparison tools like Policygenius or The Zebra to quickly evaluate options. Look for discounts on safe driving, bundling home and auto policies, or enrolling in telematics programs.
2. Assess Coverage Needs
Liability insurance is mandatory, but comprehensive and collision coverage may be necessary for newer used cars. If your car is older and less valuable, consider scaling back coverage to save on premiums. Tailor your policy to match your vehicle’s condition and your financial situation.
3. Factor in the Vehicle’s Value
Insurance costs are tied to the car’s value, safety features, and age. Cars with high safety ratings and advanced features may qualify for lower premiums. Before buying, research how the vehicle you’re considering affects insurance costs to avoid surprises.
Making the Most of Your Used Car Purchase
Once you’ve driven off the lot, taking care of your vehicle ensures it remains reliable and valuable.
1. Schedule Regular Maintenance
Follow the manufacturer’s maintenance schedule for tasks like oil changes, tire rotations, and brake inspections. Staying on top of routine maintenance prevents costly breakdowns and prolongs your car’s life.
2. Invest in Quality Parts
Using OEM parts for repairs ensures compatibility and reliability. While aftermarket parts may save money upfront, they can lead to performance issues over time. Choose parts that meet the manufacturer’s standards for peace of mind.
3. Maintain Detailed Records
Keep a log of all repairs, services, and upgrades. This documentation not only helps you track your car’s health but also adds resale value if you decide to sell in the future. Potential buyers appreciate a well-documented history.
Taking the Wheel with Confidence!
When it comes to buying a used car, patience and preparation are your best friends. Take your time, do the research, and don’t be afraid to compare options until you find the perfect fit. This is a big decision that affects your daily life, so don’t rush into anything. Bring along a trusted friend or family member if you need a second opinion—it never hurts to have an extra set of eyes.
Once you’ve found a car that checks all the boxes, dig into the details. Inspect it thoroughly, ask for a vehicle history report, and confirm that it’s in good shape mechanically. With the right approach, you’ll drive away knowing you’ve made a solid choice and avoided any costly surprises. Ready to hit the road? The perfect used car is out there waiting for you!
