It's the end of the line for your current car and time for a new ride. The advantages of buying a used vehicle are significant, as millions have concluded. The used car market in the United States is enormous, dwarfing new car sales by a 2-to-1 margin. 

The advantages are obvious, but for some buyers, the process is not. How can you find the best possible deal given the abundance of choices, the realities of supply and demand, and the constraints of your budget? The answer: by following a few straightforward pieces of advice from people in the know — those who sell used cars and those who buy them. Our team has put together this used car buying guide to help put you on the path to a successful shopping experience.

Know What You Can Afford

nissan tire and rim

Image via Flickr by carleasingmadesimpletm

As the saying goes, we would all love to have a luxury car such as a BMW, but we really only need a Toyota, a Honda, a Kia, a Hyundai, or some other less expensive car that does the job. There's no sense in falling for a really nice car if it's out of your price range. Understanding your budget is the first and most important step in used car buying.  

According to CarFax, you should limit your car payments to 10 to 15 percent of your monthly take-home pay. So, if you bring home $2,500 a month, for instance, you want your car expenses to be about $375 a month. An easier way to accomplish this is by getting yourself pre-approved for financing. Apply to get pre-approved for loans at credit unions or local banks. Once approved, you know exactly what you have to spend and can structure your search accordingly by choosing the cars that work best for you and your family.

Do Your Research

The next step in the process is to create a shortlist of cars that might fit your needs. Consider the size of your family and the type of driving you do. Answers to those questions will help you decide whether you're in the market for an SUV, truck, car, or some other vehicle and what size might work.

One way to make that shortlist is by consulting one of the many available used car guides, such as Kelley Blue Book, an auto-buying portal that provides data that will show you roughly what you can expect to pay for a used car in your particular market based on real sales data. KBB.com also provides data that can help you judge offers for your trade-in as well as practical articles about top brands, options for financing, new car prices, and more. 

Edmunds.com is another well-known auto guide that helps fuel the curiosity of used car buyers with resources, such as new car pricing, used cars for sale, and car reviews. Edmunds publishes a series of "best car" rankings that can help identify target cars for you to look at as well as information about their history for reliability.

A third major source for information is Consumer Reports, an independent, ad-free magazine that offers reviews, advice, ratings, and other insights into the used car market. Consumer Reports also lets you check the potential value for your trade-in online, a key piece of information to have in used-car buying. Become a Consumer Reports subscriber and you can also get access to test reports on specific vehicles.

Begin Your Search

Now, to get to the heart of the matter: the search itself. Determine which of the cars on your shortlist are available in your geographic area, and map out a strategy for going to see them. Inspecting these cars yourselves remains the single most important aspect of used car buying. According to Consumer Reports, here are some things to consider while you make your decision.

How many miles does it have? 

The more miles on the speedometer, the more wear and tear the car has experienced. But the conventional wisdom about mileage has changed. Many used to consider the 100,000-mile threshold as the point at which a car begins a steep decline. That's not the case anymore, as auto engineering has improved by leaps and bounds. Mileage levels can also be deceptive. High-mileage cars from reliable car brands that have been well-maintained may offer exceptional bargains. The opposite can also be true. A car with lower mileage means that certain parts may have sat dormant in a way that might affect the car's functionality, which can turn into unexpected mechanical challenges, according to Allstate.

Watch out for rust

Closely inspect the car's body. Rust can be one of the sneakiest problems in connection with the purchase of a used car, partly because it may not be apparent with a cursory look. You might have to take it to a mechanic to get an accurate assessment. Besides being an eyesore, rust can lead to unexpected headaches in the operation of the car — for instance, it might develop holes or cracks that leak into the car when it rains.

You also want to look for dents, scratches, or other body problems. Those may seem like small considerations, but they can rapidly grow into colossal problems down the road. A thorough body inspection can also tell you if a car has been in an accident; the telltale sign is when sections of the car have been repainted and colors don't quite match. Cars that have been in accidents may have structural weaknesses you'd rather avoid.

Check other parts of the car from bumper to bumper as well, such as the lights, tires, and suspension. Problems you notice may not disqualify the car from consideration, but they may factor into your negotiations.

Trust your senses

When you test drive the car, be aware of any significant odors. You may have a family member who is allergic to cigarette smoke, for instance. Make sure the seats can be adjusted without problems, especially if they are power seats. Examine the seats to make sure there aren't tears in the fabric; small rips can also become bigger problems down the road. Make sure the instruments are all functioning and test other systems, such as the radio and air-conditioning. 

Trust but Verify

Especially if you are buying from a private seller, experts say you need to make sure the transaction you are entering into is on the level before signing any checks or filling out any paperwork. It's particularly important to check that the car has a clean title — that the person who says they own it actually holds the title and is authorized to sell it. It's much easier to do this today than it used to be by obtaining vehicle history reports. These reports will also tell you if a car has been in an accident. 

Separately, you may want to put your vehicle identification number through a "VIN Decoder" online. VIN decoders can provide information about the manufacturing of the car that you can compare to what is being represented to you by the seller to make sure they line up. VIN decoding will also let you know if the car is subject to any recalls, according to Edmunds.

Consider the Benefits of Certified Pre-Owned

Most dealers offer used cars that have qualified for manufacturers' "certified pre-owned" programs, which can bring extra assurance and peace of mind into your search. A car designated as certified pre-owned has typically gone through extensive inspections from end to end that give a "seal of approval" that all systems are in good working order. 

The manufacturers and dealers stand behind their inspections by offering warranty coverages that aren't available on used cars sold by individual buyers or on non-certified pre-owned cars. Because the cars are pre-inspected and come with guarantees, there's usually no need to take the car to a separate mechanic. And many CPO programs automatically provide CarFax reports, which helps simplify the process even further. 

Learn more about the Nissan Certified Pre-owned Program, available at Tom Wood Nissan, for an example. The Nissan program provides enhanced benefits, such as trip interruption reimbursement and roadside assistance, in addition to the warranties.

Used Car Buying at Tom Wood Nissan

Shopping for a "new" used car, whether for yourself, your spouse, or your children, takes hard work and patience. The team at Tom Wood Nissan understands that cars are an enormous investment and is working hard to bring you a no-hassle, transparent, easy-to-navigate buying process. Our selection of used and certified pre-owned cars includes cars from Nissan and all the other major car brands, ranging from Audi and BMW to Dodge, Ford, and GMC to Subaru and Volkswagen. 

Tom Wood Nissan is a full-service dealership serving Indianapolis and other parts of central Indiana. In addition to our new and used car inventory, we also offer financing support to get you the right size loan and loan payment as well as repair and maintenance services designed to help you keep your car on the road as long as possible.

We'd love to have you test drive one of our cars. Call us or contact us online today to make an appointment.

Categorías: Used Cars