I know that buying a used car can be a daunting experience, especially if you’re trying to purchase it from an unknown third-party, but let me tell you about a few tricks I’ve learned over the years.
There are pros and cons to buying from a private seller versus buying from a dealer or a used car lot. Purchasing a vehicle from a dealer can be anywhere from 10-30% higher than buying from an individual.
Luckily, there are certain steps you can take to mitigate the risks of buying from a third-party seller. In my experience, if you are patient, diligent and persistent, you can find a good, reliable vehicle that you’ll be happy with.
The most obvious issue with buying from a stranger is safety. Unfortunately, there are scammers everywhere these days, especially online. My first rule when going to look at a vehicle is to pick a public location — that you choose — to meet the seller. The seller knows you might be showing up with a large amount of cash. And second, never go alone. If you have, say, a very large, mean-looking biker friend, have them accompany you. Plus, if you end up buying the car, you won’t be stuck trying to figure out how to get home with two cars.
There are several online classified sources for buying used cars, but I’ve consistently had the best luck using Craigslist. So while there are many other good, reputable sources out there, for the sake of consistency, I’ll be referring to Craigslist throughout this article.
Disclaimer: I’m not a mechanic or a car collector. I’ve never worked in the automobile industry in any way, shape or form. But in the 44 years since I started driving, I’ve bought more than 100 cars, ranging from classic collectables to newer used cars, and everything in between. Sometimes those purchases worked out well for me, and sometimes they didn’t. I’ve learned a lot from both the good and the bad, so here are the four steps I now take when buying a used vehicle, based solely on my personal experiences.
Decide exactly what your budget is.
People often ask, “How much is it worth?” The tongue-in-cheek answer is usually, “It’s worth whatever someone’s willing to pay for it.” But that’s not exactly true. When purchasing a car, it’s worth somewhere between what a buyer is willing to pay for it, and what a seller is willing to take to part with it.
Before looking at any car, decide exactly what your maximum budget is, and then begin looking for your car at 20% above your drop-dead maximum price. For example, if your hard budget is $10,000, set your search at $12,000. In my experience, most sellers list a car at a price they are “hoping” to get and are usually willing to negotiate. If you find a car you like that’s above your budget, try negotiating it down to your price.
The exception is when a listing says “NON-NEGOTIABLE,” “PRICE IS FIRM” or “NO LOW-BALLERS.” These are usually people I don’t want to deal with anyway, so I skip these ads.
Identify the specific car you want.
As of this writing, there are currently 1,160 Toyota Camrys listed on Craigslist in Southern California alone, ranging in price from $805 to $50,000. Obviously way too many to consider. Do some research to identify what features you want, narrow it down to a manufacturer, a model, a year range, and your price range.
You’re much better off looking for a specific car rather than having multiple makes and models in mind. Google can be your best friend when buying a car, and it’s important to do your research. Once you’ve identified a make and model, Google if that car had any ongoing safety or mechanical issues for certain years and avoid those years. You might find a really nice 1973 Ford Pinto (my very first car) that you just can’t live without. But after a Google search, you’ll learn that 1971-1976 Pintos had some serious issues with the fuel tank that you probably couldn’t live with. Unless you’re looking for cars that literally explode, that is.
Find your car.
Don’t buy the first car you see. Look at and drive multiple cars. Doing this will give you additional insight into what you may and may not like about a certain vehicle. I try to give myself at least a month of looking, driving and evaluating before I make a decision. And, yes, many of the cars you’ve looked at may be sold during that time. But, that’s not necessarily a bad thing. If you keep track of what cars you’ve looked at, the asking price, and how long it took to sell, this will give you an idea of what the current market price is for that car.
Buy your car.
There are several factors most people, including myself, take into consideration when deciding to buy a vehicle. Here is what I think is the order of importance:
Exterior
Paint and body condition are usually the first thing you see when looking at a vehicle, and it is often how people evaluate a car. Depending on the age of a car, there will be a certain amount of deterioration to the paint due to exposure to the elements. Most of this is out of the control of the previous owner, so rather than looking at issues out of the owner’s control, I look for signs of owner neglect. Is the car dirty? Are the wiper blades old? Is there an unusual amount of door dings on both sides? This tells me that the owner doesn’t take very good care of their car, and if they don’t take care of these minor things, they probably don’t take care of major things like oil changes and brake maintenance.
Interior
Same premise as the exterior, but even more important: Don’t buy a car with a neglected interior. I’m not talking about usual wear and tear. I’m talking about cigarette burns in the upholstery, 2-year-old french fries between the seats, spilled coffee stains on the carpet. These are signs that the owner doesn’t care about the car, and you don’t want a car that wasn’t cared for.
Mechanics
This includes the engine, transmission, brakes and more. This is the defining factor I consider when buying a car. There are a couple important ways to ensure that the vehicle you are considering is mechanically sound:
First are receipts. If someone has kept their maintenance receipts, showing regular oil changes, etc., I’m more likely to buy that car. If someone tells you they had the brakes done last month, but they don’t have a receipt, the work possibly never happened.
The second thing to do is take it to a mechanic you trust for a complete diagnostic evaluation. This will cost anywhere from $40 to $500 depending on how thoroughly you want your mechanic to dig. I believe it’s worth every penny to find out that the car you might buy is in need of major, expensive repairs. If the seller isn’t willing to let you take the car to your mechanic, don’t buy it. This also can be used as a negotiating tool: If you find the car is in need of some minor things, you can get the seller to knock the cost off the asking price.
Hopefully that’s enough to get you on the road safely, and economically. Like I said, this approach has worked for me over many years. Patience, diligence and perseverance will serve you well. Now, excuse me while I go look for a 2005 Ford Thunderbird … my wife wants one.