I've observed of late a few people asking about how to go about buying a used car ... and I, along with others, have plonked down my 2-cent's worth on a few occasions. As a result, I thought it might be worth putting it all down in a quick summary that might be of use to someone, somewhere, at some time...
(Note that none of this is anything new on my part! I'm just regurgitating the advice that others have given me over the years, and which I've found quite useful. Truth be known, I'll probably miss out something important too; but I'm sure someone will come along and correct me!)
What Do You Want?
Firstly, decide what you want. Think about what you want the car for, think about seating capacity, think about your budget, think about how long you're likely to keep it for, think about the options you think you want. Remember, you may have to compromise on the options (and some options might not cost all that much to fit aftermarket), and you might find you don't need some things that at first you thought you needed. Write it down - it's going to become a checklist to shop by.
Yeah, I know it's obvious, but I also know people who've wasted ridiculous amounts of time looking around at stuff they're just not interested in.
If you're young and you're thinking of anything remotely sporty (even if it's just the name), check out insurance quotes before you get too excited; insurance can blow your yearly budget way out.
Check the Cost
Next, see what's around for the sort of money you're thinking of spending, and what fits into the type/s of car you've decided on. If you're in Australia, www.redbook.com.au has a method of producing a list of cars that meet certain criteria, www.drive.com.au also lists used cars, and www.autoweb.com.au, www.trading-post.com.au and www.tradingpost.com.au can give you an idea of what's available in your area.
There will be similar types of sites all over the world; just give your web-browser a workout to find them.
If you're a total novice and don't know much about cars, you might need to go out looking in car yards to get a feel for what's available. I suspect that there ain't too many people reading this screen who're in that situation ... but hell, I tend to do this anyway, 'cos it's fun (and sometimes you get inspiration for stuff you just didn't think of). Don't think of this step as the "buying" stage though, unless you see something that's a real bargain and which you've done enough research on (some things are a lot cheaper than you expect but you can still pay too much if you're not careful).
Where to Look
Look among the for-sale ads, or at dealers.
Be aware that dealers must make a profit, so you'll pay more. Some people feel more comfortable buying at dealers because you often get a warranty; IMHO the warranty is worth jack-shit if the dealer doesn't want to honour it properly... Late- and current-model cars are easier to find on the used lots of dealers that sell the same car new ... don't fall for the pricing on the windows though - they'll often try to sell a semi-popular 18 month old car for as much as a new one.
As for buying privately, it's hard to pick the good cars without actually looking at them. Most sellers will lie - it's a fact. You just have to be able to tell the big lies from the small lies.
If you're going out hunting for a car, it may be worthwhile carrying a reasonable amount of money with you, for a deposit. If it's a hot item or a really good price, you may want to seal the deal on the spot.
Looking at the Car
Examining the car is obviously a crucial step.
Note: DO NOT sign for anything until you've inspected the car, even if the dealer says he'll tear up the contract if you don't like the car! (See below).
If you're not all that comfortable with picking faults in a car, it's sometimes worth taking along someone who is; but beware, because I've seen many a car bought on the approval of Uncle Bob who reckons he knows what he's doing but hasn't picked-up on very obvious accident damage. If you're not sure of Uncle Bob's expertise, you can often pay a motorist's association to have a look, or even get a mobile mechanic to give a car the once-over. The last my Dad bought he wanted to buy then-and-there because it was a few hours from home ... the motorist's association weren't going to be able to look at the car until the following Tuesday, so we simply took it to the local servo (making sure the vendor didn't know the owner, of course!)
Maybe the following checklist is in order. This may not be absolutely everything, but you can at least look at the following before calling in more expert help. First impressions do mean something. Sellers expect a buyer to expect a clean car; if it's dirty or looks unkempt, be very cynical about how it's been looked-after.
Paint and Panel
This inspection really must be done in full daylight and with a dry car, or you miss things. Look for any dents and dings, they may not be major but you can use them as bargaining chips - and after all, they reduce your resale. Look for paint that's a different colour, or dull areas of paint, or even cracking and peeling. Paint is expensive to repair!
Be aware of any rust at all. Look at the bottoms of all windows, around hinges, around fuel-fillers, at the bottoms of guards, and inside spare-wheel wells. It's worth knowing that rust in non-structural areas can be fairly cheap to fix as long as you don't want the car to look perfect, but it'll probably be popping out again within a year or two, so that'll be an additional cost later on. Rust anywhere structural can be very expensive to fix.
Make sure there's no smoky discolouration around the exhaust pipe - more on this later, but that can be an indicator of bad engine condition.
Paint with lots of tiny air bubbles will fail within a few years. Paint with larger bubbles of more than a millimetre or two is most likely hiding rust underneath.
Make sure all doors, bonnet, boot etc shut properly and seal; if a car has had a big hit, it can be bent out of shape. If possible, drive behind the car to make sure it isn't "crabbing"; this could be caused by suspension work needing to be done, but can be a sign of terminal accident damage.
Finally, look for over-spray where there shouldn't be any paint, or where the wrong colour has gone over the top of another colour. Under bonnets, inside doors and boots, and the joins of panels and differing colours are the places to look for this.
Basically, my opinion on resprayed cars is that the job can be good, but it often isn't. Some original paints just don't last and all the examples of a car might be repainted; don't reject all resprayed cars, but you have to judge the quality of a paint job. If you can tell it's been painted, that often means it's not good enough ... in my opinion, over-spray means a panel-beater wasn't careful enough.
Interior Condition
If you don't mind looking at it, the appearance of the interior is possibly the least important thing. It'll give you an indication of how the car was looked-after though, and a complete re-trim isn't all that cheap.
Basically look for worn or torn seat coverings, and make sure the seat cushions aren't saggy and uncomfortable ... re-padding will only set you back a few hundred dollars, if that's all that's wrong with a car.
Does it all Work?
Make sure that absolutely everything works, and if something doesn't work, be aware of what it'll cost to fix. The more expensive the car was originally, the more gadgets it will have - and many might be defective...
Check all indicator lights, hazard lights, brake lights, wipers, sound system, operation of mirrors and windows, fog lights, headlights, parkers, rear demister, fan and heater and air-conditioner. If the car has electric seats, check each function, listening to the sound that the motors make as well as seeing if the right bits actually move. With older cars, it might be worth checking that you get no water leaks onto the floor when you turn the heater on.
Weird stuff going on with electricals is often a bad sign ... if it's only one isolated incident (eg a rear blinker light not working, or maybe tail-lights flashing with the blinkers) it may not be trouble, but if all of the car's electricals are decaying with age, then it might be annoying/expensive over time.
Underbonnet
Have a squiz under the bonnet, and under the car. As long as it hasn't just been running, check the overflow tank or coolant for the "chocolate milk" look of oil in the water (which indicates a blown head gasket, which can lead to overheating and head warpage). Check that the oil is at an expected level, and not too filthy. Check that all of the fluid reservoirs have the right levels in them (eg brake, clutch and power steering).
Check for oil leakage; this could just be seals, but then paying someone to replace the seals is going to cost you something. If possible, look on the ground for big oil stains where the car usually parks.
Starting and Running
Start 'er up. Is she hard to start? Does she need to be warmed-up for too long? Moderate warm-up periods are not uncommon in older non-injected cars, but there's something wrong (which could be either cheap or exxy to fix) if a newer car needs warming up for too long before it's driveable. Make sure the engine isn't making too much noise at idle. Some cars will be noisier than others, but there shouldn't be any loud ticking or rattling (although if you hear the tick-tick-tick of the injectors don't worry!).
When driving, check in the rear-vision mirror for any smoke (don't worry about steam if it's cold weather and the car's just been started, but it should go away once it's been driving for a few minutes). If it's a turbocharged car, once it's warmed up, accelerate quite hard (a wisp of blackish smoke from unburnt fuel is not abnormal at this point) and then suddenly lift off; often if the turbo's seals are going, it'll let off a puff of white smoke as the leaking oil is burnt. Again, it's nice if someone can watch for smoke from outside the car.
Make sure all the gauges are working as they should.
Ensure the car has the expected amount of power - if it's underpowered, there may be something wrong. Check that it doesn't backfire or shudder as you accelerate, unless it's a relatively cranky modified car and you're sure it's been done properly. Of course, listen for nasty driveline or engine noises while driving; it's always best to test-drive a car without the radio on, so you can hear what's happening.
Clunks
Listen for steering or suspension clunks, rattles and squeaks. Don't confuse a dead body rolling around in the boot for suspension problems though - make sure that there's nothing loose in the boot before checking this stuff out. Squeaks and groans from the suspension can often be fixed, but they'll obviously cost you more money.
Also make sure it steers straight, and doesn't pull to one side or the steering wheel shudders when braking. Make sure the brakes work, and also make sure the car doesn't have excessive bodyroll when cornering - beyond what you'd expect for that sort of car; shocks are also an expense.
Last Minute
Do a last minute check for all things that will cost you soon, or in future. Full service logs add to the value of a car, as does low mileage. If it needs tyres soon, be aware of what that'll cost; if it needs servicing soon, that will cost you money too - and with some cars that could cost a lot. Late model cars are often sold just before a major service is due - if you want to maintain factory servicing and the next schedule involves (say) changing all of the fluids and the timing belt, you could be up for a lot. Remember this stuff when negotiating the price.
If you're still not comfortable with deciding about the car, book it in for a mechanic to look at it.
Happy?
So, you're happy with it so far? Agree on a price then. You really have to know what similar cars are selling for to ensure that you're not getting ripped off; but then if it's something unusual and you really want it, you have to decide whether paying a bit more than "market value" is worth it to you.
Hell, "market value" is only what someone will pay for it, so if you're willing to pay that money then that's what it's worth ...
If you're at a dealer and they start offering extras for not much more, be wary. Extended warranties are a hairy issue; a lot of them aren't worth the paper they're printed on, but some aren't bad at all. As a rule of thumb, it's not worth getting unless it follows the exact terms and conditions of the factory warranty ... and remember, the aftermarket warranty companies will most likely not be as forgiving if you go past the specified service periods, so always get the car serviced on time or you could be wasting your money on any extended warranties. (Many aftermarket warranties are more like insurance schemes than anything less - they'll pay out a max of $1000 on the engine, $500 on the gearbox and so on. When many automatic transmissions of the last decade cost $3000+ to overhaul, five hundred bucks isn't much towards it, is it....)
If you're not sure, or think a price is too high, it's safest to walk away. In case you want to go back, don't be rude; just give yourself time to think about it, or maybe look at a few other cars. Of course, you can't afford to procrastinate too much.
One very nasty trick that unscrupulous dealers will try is to get people to sign for a car before driving it. They usually do this to people who're a bit confused about the car buying process, often because English isn't their first language. They then try to push buyers into taking dealer-organised finance if the buyer can't afford the car. The people often just wanted to test-drive it, and had had no chance to bargain the price down to something reasonable. A workmate was stung by this; he didn't realise that the piece of paper he was signing was a document that said he was legally buying the car, and they wouldn't even let him test drive it afterwards. The only ways out were to pay 5% of the value of the car (as per the contract), or go to court - it was cheaper to pay the 5%.
Agreed on a Price?
If you've negotiated a price that you're happy with, then agree to the deal on the proviso that the paperwork checks out OK. And make sure you can afford the price! If you're going to be borrowing money, don't leave a deposit (unless you're prepared to lose it) if you don't know if the loan will be approved.
If you really want the car you'll often have to leave a deposit, because you won't be able to get your hands on enough money - especially if it's the weekend. Sellers won't accept a personal cheque, so unless you're in the habit of walking around with wads of cash on you, you'll often have to wait for Monday for the bank to open.
Check with the relevant government office that you will actually own the car if you buy it - that it won't be repossessed because there's money owing on it. I believe some countries do this via the police department; in Australia you ring REVS (although that's still not 100% guaranteed).
Also, make sure the person selling the car is the person it's registered to; you don't want to be buying a stolen car!
Done!
Voila! The deed is done - you've just bought yourself a highly impressive car.
You are now infinitely attractive to the opposite sex, and can do no wrong ... enjoy it!
