Buying a used car: what to know before you start

Preparation separates a planned purchase from an impulse one. Before you look at any used car, decide the total you can spend, the features and space you need, and the checks you will complete before you pay. The sticker price is only part of the cost. Sales tax, title and registration fees, insurance, fuel, and the maintenance and repairs needed in the first year all count. A car that costs less up front can cost more over twelve months than a slightly pricier car in better condition.

Preparation also protects you from pressure. Sellers sometimes describe a car as popular or about to sell, and deadlines are a common way to hurry a decision. A buyer who has already set a budget and a list of checks can say no without second-guessing, because the decision was made in advance.

Set a total budget, not just a price

Start with a maximum total figure, then work backward. Subtract the taxes and fees your state or locality charges, and get an insurance quote for the specific model you are considering, since premiums depend on the vehicle and your driving record. Then subtract a reserve for immediate maintenance. Used cars often need fluids, filters, tires, brake work or a battery soon after purchase, and an inspection may turn up repairs. A reserve lets you pay for those items without borrowing again. Write the total on paper, because a number you have written down is harder to quietly revise under pressure.

If you plan to finance, compare the annual percentage rate and the total amount repaid, not only the monthly payment. A longer loan lowers the monthly payment while raising the total interest. Extended warranties, gap coverage and other add-ons are usually optional, and their prices are often negotiable. This section is general information rather than individual financial advice. A financial adviser can help you weigh borrowing options against your own situation.

Define what the car must do

Write a short list before you start searching. Include seating and cargo needs, the daily commute, parking constraints, the drive type you prefer, and any climate needs, such as winter tires or heated seats if they matter to you. Keep the list next to your budget. It helps you ignore attractive features you will not use and spot the cars that meet the essentials.

• Seating and cargo space for your normal loads, not occasional trips
• Fuel type and a realistic estimate of the miles you drive each month
• Drive type, such as front-wheel, rear-wheel or all-wheel drive, and the snow or hill conditions you face
• Parts availability and the number of independent repair shops that service the model

Model-specific details change maintenance costs more than most individual features do, so research them early.

Check the title, history and recalls early

Ask the seller for the vehicle identification number (VIN) before you visit. Compare it with the VIN on the title, the sticker on the driver's door frame, and the plate visible at the base of the windshield. The numbers should match exactly.

Next, run a vehicle history report on that VIN, rather than relying on a report the seller provides. It can show title brands, reported accidents, odometer readings and registration history, but it reflects only what was reported to its sources. Treat it as a list of questions for the seller and the inspector, not as proof that the car is sound.

Then check open safety recalls through the manufacturer's recall lookup or the National Highway Traffic Safety Administration (NHTSA) recall lookup. Under US federal law, manufacturers generally must provide a safety recall repair free of charge, regardless of who owns the car, though the obligation has limits for older vehicles, so confirm the details for the car's age with the manufacturer.

Check that the name on the title matches the seller. If a lender holds a lien on the car, the seller needs to pay it off and provide a lien release before you can take clean title. Note the model year and the mileage together. Age tells you which rubber parts and fluids are likely due for attention, and mileage shows how much wear to expect. Ask for service records as well. Gaps in maintenance history are not automatically a deal-breaker, but they mean the inspection must answer questions the paperwork cannot.

Plan the inspection and test drive

Schedule an independent pre-purchase inspection before you commit, and ask the seller not to start or warm the car before you arrive, so that you can judge a cold start. Book a specific appointment window with the shop, and tell the shop in advance that you want the underbody checked, since lifting the car takes time. A visit squeezed into a short slot tends to miss things.

Plan a test drive on a route that includes city streets and a highway section. Bring a notepad, a flashlight and a tire pressure gauge. On the drive, listen for noises during steady cruising and while braking, and confirm that warning lights which come on at startup go off after a few seconds. Note whether the steering pulls to one side and whether the transmission shifts smoothly.

Know when to walk away

Walk away from a seller who refuses an inspection, pressures you to decide on the spot, asks for a deposit before you have seen the car, or cannot show a title in their name. None of these facts proves that a seller is dishonest, but each one raises the risk enough that you should be willing to lose the sale. A sound car will still be worth a second look after you have checked the paperwork, so there is no need to decide on the spot. Keep your checklist with you, and let the car's documents and inspection results make the decision rather than the urgency of the conversation.