Part II - Process of buying a Used Car

This article aims to give you basic knowledge about how to inspect a used car and can possibly help you toHappy Used Car avoid used cars with potential problems i.e. avoiding lemons. To begin with let me make one thing very clear: "buying a used car requires tons of patience in addition to a lot of research effort".


1] Shortlisting:

a) Browsing online:
Look for used cars listings on www.craigslist.com. You would find cars listed by both dealers and private sellers. More often than not craigslist would suffice, but incase you want to look for more options you can check out other sites such as UsedCars.com, Cars.com, CarsDirect.com, etc.

b) Verifying by VIN:
Once you like a car, the next step is to look for its VIN no. VIN stands for Vehicle Identification Number and each car has one such unique number. In Oprah speak, its similar to a SSN. Every VIN# Tells A Story. One can peek into the cars history by using this 17 digit VIN#. By car history I mean the foll:
- the no of previous owners ???
- the type of owners ???
- Any accidents, engine, transmission repair ???
- Has the car passed last Emission Test ???

However, knowing the VIN no won't help in getting the above info. You would want to purchase an account with www.CARFAX.com to get all the car history using the VIN#. A carfax account for 1 month of unlimited usage would cost around $30. Buying a carfax account and filtering cars based on its VIN# is the first and most important step in this whole process.
2] Inspecting a used car:

Once you are satisfied with your research with the car's VIN#, proceed towards setting up an appointment with the car's owner.

a) Questions to ask to Seller:

Ask the seller to point out all known defects, problems, issues, etc. with the car. If there are any subsystems, alarms, or computer indicators that are not functioning, have them point it out to you. Ask the seller when the brake pads were last replaced. Ask if there is an extended warranty with the vehicle, and if it is transferable to you. Verify this with the warranty company. Ask to bring the car to your mechanic to check it out. If they say no, you have to wonder what they are hiding.

b) Inspecting Externals of the car:
Following is an excellent webpage that teaches how to inspect the car body: http://www.samarins.com/check/bodycond.html

c) Inspecting Internals of the car:
Following is an excellent webpage that teaches how to inspect internals of the car:
http://www.samarins.com/check/checklist.html

However, this information cannot substitute for detailed mechanical inspection performed by a professional. To protect yourself, take a car to a mechanic of your choice for detailed mechanical inspection prior purchase. I did a checkup at pepboys. I did a 120 point checkup for $70/80 + an engine checkup for $40. However, spend your money for a professional checkup only after a test drive and price negotiation, i.e. when you are absolutely sure of buying the car.

d) And finally the Test Drive:
Drive with the radio on and off. Test the speakers to see if they are cracked. Make sure the CD player works. Take the car on a highway, main streets, and side streets, see if the car loses alignment, or bears to the left or right. See how good the car brakes, drive sharply around some corners, and your companion is writing everything down. Make sure all the seat belts work, that electric seats work, look for missing or burned out bulbs inside and out. If the car has retractable headlights, make sure they pop up and turn on. Make sure the brake lights, reverse lights and directional lights work.

3] Deciding the Price:
To decide whether the price quoted by the seller is reasonable or not, you can do the following: Go to Kelly Blue Book, http://www.kbb.com/. There you can find the car price according to all variables like car make, year, model, mileage, etc. Lastly, it would ask you to select from the following 3 options:
- Trade-in Value
- Private Party Value
- Suggested Retail Value

If your seller is a private seller, than the price quoted by him/her should be less than the KBB's price for a Private Party Value. And if your seller is a dealer, than the price quoted by him/her should be less than the KBB's price for a Suggested Retail Value.

4] Essentials after buying a car:

Jumper Cables:
If the car does not have jumper cables, go buy some on the way home, without delay. You never want to be without jumper cables.

Battery/Alternator:
Ask the seller for receipts for the battery or alternator. Many auto parts stores have lifetime warranties on alternators, or will prorate a failed battery only if you have the original receipt.

This is what I learnt when I bought my car. I would be more than happy to know any glitches in the above process or any worthwhile improvements that I missed out on.