Visit the dealership, superstore, car lot or other source. When buying from a private individual, adapt the following steps to that type of sale. Take a notepad and calculator. Be prepared to spend time.
Meet the salesperson or seller and write down his or her name. Look for the models you are most interested in. If asked how much you would like to spend, say, “it depends on the car.” Do not be afraid to say that you are looking for cars at other places.
Find one or two models and inspect them. On your notepad, identify the car, the year, the price, options, trim line, mileage, and vehicle identification number (VIN). Request the name and phone number of the previous owner from the title. Ask to see the title, then match the VIN with that on the car and note the name and phone number of the previous owner.
Test drive one or two vehicles. If you are interested in a particular car, ask the salesperson if you can take the car to your mechanic for an evaluation. Also, examine the cars warranty. Check the performance, safety and service records for the car. You can obtain price information from the Consumer Reports Used Car Price Service for $1.75 per minute, phone 1-900-446-0500.
On the Internet, you can obtain price information from:
Also the NADA Official Used Car Guide gives information about the prices of used cars. These resources are available at your local public library. You can check if a used car has had a safety recall at the National Highway Traffic Safety Administration’s Auto Safety Hotline by calling (800) 424-9393.
Leave the premises. At home, phone the previous owner. Ask for the mileage reading at the time of trade-in. It should be consistent with the present reading. Contact your financing sources, request price information about specific cars and confirm loan availability. Also, get an estimate of your insurance costs from at least two insurance sellers. Review your information and estimate the wholesale and retail price for the car you wish to purchase, based on the following information:
- price information from a current used-car price guide or from financing sources
- the cars condition, checked by you
- prices of similar vehicles, from advertisements
- reasonable seller markup to cover overhead and profit
Return to the seller and make arrangements to take the car to your mechanic. You may be asked to leave your car at the lot as security. Once you receive the mechanic’s dollar estimate of needed repairs, either subtract that amount from your maximum offer or use it as a negotiating tool.