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How to Buy a Used Car – a Frugal Guide

Getting a Great Used Car

I grew up always buying used cars. I was taught how to do this by my dad who grew up on a farm in Ireland and knows how to find a good value. I thought everyone knew how to do this, but over the years in talking to many of my friends I realized I was wrong.

Many people, if they do buy used cars, go to a used car dealership thinking they’ll get a good warranty or at least they’ll be assured that the car will be in good running order. That may be true, but often it is not. And the bottom line is you are paying for that middle man. Here’s a better way as taught to me by my frugal, bargain hunting, Irish dad.

How to Buy a Used Car and Get the Best Deal

  1. Determine your budget. Calculate in these costs as well:sales tax, registration fee, insurance, and possibly minor fix-up costs.
  2. Research and choose the model of car you want to buy. Choosing a model that is know for longevity is a good idea, because chances are you won’t have as many expenses over the years. Longevity cars: Toyota’s, Honda’s, and Volvo’s. Even older Mercedes can be a good choice if it has been maintained well. Check out Edmunds to research the model that will be best for your needs.
  3. Search for cars for sale your local paper or Craigslist.
  4. Talking to the Seller. For best results try to find a seller who sounds mature and has all the maintenance records for the car going back over time. Try to find a one-owner car or perhaps a two-owner car. If you feel uneasy over the phone, either you feel they’re telling lies or you feel unsafe, move on to the next car on your list. Some questions to ask:
    1. What is the car’s condition?
    2. Mileage?
    3. Any problems: leaking oil, transmission fluid, does a/c work, rust, ever been in accident?
    4. Are you the original owner?
    5. Do you have all the maintenance records?
    6. Why are you selling the car?
  5. A quick safety note: use your best judgement. If you are uncomfortable, move on. If you want to be safe you can ask to meet at a public place and it’s always smart to bring someone along with you, preferably someone who knows about cars.
  6. Test Drive. Drive for a long enough distance to get a good feel for the car. Test the radio, but drive without it on so you can listen for problems. Notice these things:
    1. How does it brake?
    2. How is the alignment and suspension? How does it handle around corners and over bumps?
    3. Anything sound funny?
    4. Ergonomics: does the car fit you? Can you see out the windows, are the seats comfortable?
    5. How is the transmission? Automatic: does it shift smoothly. Manual: how does the clutch feel? Does the pedal go down very far? That could mean the clutch might be on it’s way out.
    6. Review the Car. Check for all these things that can be negotiating points and also safety issues:
      1. Rust, if so is it surface or deep body rust?
      2. Doors and trunk do they work?
      3. Body: do you detect repair work such as different color paint on the car?
      4. Tires: is there wear on the treads and are all tires the same size?
      5. Trunk: any signs of water leakage such as dampness or mildew smell? Is there a jack and spare tire?
      6. Interior: water leakage signs? try all the electronic and manual controls such as adjusting the seat, windows, etc.
      7. Undercarriage: any signs of oil leaking, how does the muffler look.
    7. Optional: check the car’s history by asking to review the VIN (check that it matches the Title document) and then you can purchase a history of the vehicle. If you’re spending a lot of money this might be worth it to you.
    8. Additional information for inspecting a car: Used Vehicle Inspection Guide by Autotrader.
  7. Mechanic Inspection: Ask your mechanic to check for things you’re not qualified to review.
  8. Negotiate Price. You should research the approximate value of your car first. Kelly’s Blue Book is a good online resource.
    1. Mention drawbacks: the things that you feel are negatives about the car, and also the fix-up costs you will incur after buying the car.
    2. Make your first offer. It should be lower than your maximum.
    3. Be silent until the seller responds with their price.
    4. Negotiate to a final price in smaller rather than larger increments. When you get to your maximum tell the seller that is your final offer. Try not to go above your maximum unless it is a small amount. Don’t be afraid to walk away. You can leave your phone number. You’d be surprised how often you’ll get a phone call later saying let’s make a deal.
  9. Seal the Deal. Write up a bill of sale with names, phone numbers, car model, VIN, price, date and any conditions. Have the owner sign over the title to you. Pay the owner. The only caveat: If you feel uncomfortable, listen to your gut, and walk away. Get another person’s input. You can always come back later. And there’s always another car!
  10. Register and Insure the car.
  11. Enjoy Your Car.

 Beautiful Used Car

Please share your comments and tips on buying used cars. Anyone have any funny stories, cautionary tales, things to look for? Let’s hear them!

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41 Responses to How to Buy a Used Car – a Frugal Guide

  1. Hotcars September 19, 2008 at 6:27 pm #

    One thing i think everyone should do is buy a cheap computer code reader. This way you just plug it into the car and it lists anything wrong with it. I guess a mechanic would do the same but you can make sure before paying a mechanic to look at a car with a problem already. They are cheap you can get one for around $45.

  2. agentsully October 2, 2008 at 6:08 pm #

    @Penny – Thanks! So glad you found it helpful!!

  3. Used Cars Mancheter October 21, 2008 at 10:20 am #

    Great guide thanks. Any idea where I can buy one of these code readers because I can seem to find one anywhere?

  4. computer November 9, 2008 at 2:25 pm #

    What ever you do, make sure it runs : )

  5. Sell Cars & Used cars January 19, 2009 at 6:57 am #

    Thanks for cool information..its really worthful

  6. Benjamin driver March 13, 2009 at 11:47 am #

    Very useful post. However, I will still opt (if I could) to buy a new car instead of a used one. The repairs of a used car skyrockets. I have had previous negative experience about that and I vowed to myself I will no longer buy a secondhand car. Anyways, to each his own. 🙂

    • agentsully March 14, 2009 at 12:42 pm #

      @Benjamin – it just depends on how well kept the used car is and the make of the car. Even if you have car costs of $1000 per year, that is less expense than 12x$300=$3600/year car payments on a new car.

      I don’t know what the average car payment is, but you get my point. You need to look at the numbers.

      And usually car expenses won’t be $1000 per year.

      You are so right, though. To each his own! Thank you so much for your comment!

  7. Buy Used BMW Cars For Sale June 14, 2009 at 6:55 pm #

    Thanks for sharing a great list!

  8. UsedCar January 17, 2010 at 4:09 am #

    Love this website. Great article about used cars….

  9. Pedal Cars NZ May 6, 2010 at 8:52 pm #

    Great tips. The most important thing is to have an experienced mechanic check out the car engine for you.

  10. boulder colorado auto repair June 2, 2010 at 4:25 am #

    Thank you for these stepwise procedure to buy the used cars.
    very useful post.
    keep going on.

  11. Used trucks July 16, 2010 at 6:31 am #

    Buying used cars by owner is good rather than dealers because here you are connecting directly with owner and and owner doing his business with you here is not any 3rd person who will get any commission. So it would be a good deal.

  12. Mobile Car Service August 22, 2010 at 8:30 am #

    Its a good checklist especially for a novice car buyer

  13. Used Vehicles September 9, 2010 at 4:32 am #

    What an amazingly written and constructed post! I thoroughly enjoyed reading this. You give so many resources to the reader, and I appreciate the time that must have went into putting this together. Great job, and 5*s from me!

  14. Salvage Title Autos December 23, 2010 at 6:16 pm #

    I think the used cars are the best! New one loose a lot of value as soon as you leave the dealership.. not worthy!

  15. Dwight July 7, 2011 at 1:01 am #

    Thanks for great article about used cars!

  16. Guide To Buy Online September 15, 2011 at 8:53 am #

    In a recent research I saw that China is growing rapidly in the Used Car Business and most of the chinease peoples are buying used cars. This post might be helpful for them. Thanks.

  17. Andrew Spencer August 19, 2016 at 6:28 am #

    This article is hysterical, and completely true! As with any used car, get as much history as you can, and have a mechanic give it an inspection to ensure no costly repairs are coming up.

  18. Douglas Lake August 4, 2017 at 5:25 am #

    have a good look round the car for any damage on the body: scratches, dents and so on. Look for uneven gaps between the panels, too, as they could betray some problems underneath, such as poor repairs or damage from an accident. Thank you for sharing.

  19. Douglas Hawkins January 28, 2018 at 1:01 am #

    This is a helpful information. I want to buy always time a used car. The used car perfect for use. Sometime you should buy a used car then your save more money. Thank you for shear this post.When I buy a car than must I buy a used car.


  1. 7 Easy Ways to Improve Your Financial Life | Life Learning Today - January 20, 2014

    […] Buy Used! Buy through the newspaper or Craigslist. Seek out mature people who have all the maintenance records for the car. Seek out automobiles that are known for longevity like Toyotas, Honda’s and Volvo’s. Go to Edmunds for more auto research. Subscribe for future post on How to Buy a Used Car. […]

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  1. […] Buy Used! Buy through the newspaper or Craigslist. Seek out mature people who have all the maintenance records for the car. Seek out automobiles that are known for longevity like Toyotas, Honda’s and Volvo’s. Go to Edmunds for more auto research. Subscribe for future post on How to Buy a Used Car. […]

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