Tips for Buying Used Cars - How to Find a Good Used Car

Used Car Sales

In recent years, more and more people are opting to buy used cars instead of new cars. And in many cases, it's a smart move!

The quality and reliability of cars has generally improved since the late 1980s, so a used car can be a good way to economize. Plus, the increasing popularity of leasing has filled used-car lots all over America with two- to three-year-old cars as leases expire. These sometimes offer as much or even better quality than a new model purchased several years ago.

Dolan Smart Money Move: These used cars are just entering the stage at which they begin to need maintenance and repairs, so look for a car that's still covered by a manufacturer's warranty (original or extended) Dealers make money from selling used-vehicle warranties, so they often don't bother to tell you that the used car has a balance left on the factory warranty. Make sure you ask!

Find the Best Deal

We've found that you're likely to get the best deals at one of the following places:

Dealerships: In spite of the hard sell and the polished techniques the salesmen use to lure you in, we think the most reliable source for used cars are new-car dealerships – provided, of course, that you go in with your "bull" detector on full alert. (Refer to Dolans 10 Rules for Buying a Car.)

If you go to a new-car dealership that also sells used cars, chances are they are reselling their trade-ins. That may work to your advantage if the car has been checked out and repaired in the dealer's own service department before being offered for sale. They may even also offer limited warranties. A reliable dealer will want to make you happy so that you'll bring repeat business - if you're really satisfied, maybe you'll buy your next new car there.

Used-car dealerships, on the other hand, tend to sell cars with higher mileage and more wear and tear than the trade-ins on the new-car dealer lots. The pricing in some used-car superstores can be nearly one percent higher than prices at franchised dealers. The cars tend to be rental and corporate fleet vehicles, which may have taken a beating at the hands of multiple drivers.

It's fine to visit the superstores and take a printout, but then head over to your local dealer and see if you can cut a better deal.

Leasing Companies: All of the cars getting turned in when leases expire can make things very tough on leasing companies. If the leaser doesn't buy that car at the end of the lease (and a lot of people don't), that leaves some nice bargains for the savvy buyer.

Car Rental Agencies: Car rental agencies often sell older cars that have been with them around six months and have between 8,000 and 15,000 miles. Rental cars are notoriously abused by drivers, but this fact is also reflected in the price. You may be able to get an excellent deal. In fact one of the things to consider is that fleets of any kind generally maintain a vehicle more conscientiously than the average consumer does.

Newspaper classifieds are an iffy source. You might get a good price in a private sale, but if something goes wrong with the car you won't have much recourse.