10 Costly (But Avoidable) Used Car Buying Mistakes

If you’re on a budget and want to save some cash, a smart money move is to buy a used car if you need a new set of wheels.

However, there are still issues to consider when buying a used vehicle so you don’t make a costly mistake.

Here are some things you need to ensure you don’t do when you pick up that new-to-you car so you don’t regret your decision.

While used cars offer a more budget-friendly alternative to new vehicles, they still require a financial investment. To determine your affordability, consider your monthly income and budget.

One recommendation is to make sure your car payment isn’t more than 10% to 20% of your monthly income, so keep that in mind when estimating how much you can afford.

You don’t have to rely on a dealership to finance your loan, and it may be more affordable for you to shop around and find the best car loan terms before you decide on a car.

Contact your bank or financial institution and see the loan and terms they would approve. It will give you a better idea of what you can afford and also give you pre-approval to make the buying process easier.

Take a moment to define your specific needs. Are you prioritizing fuel efficiency, safety features, or ample cargo space? By pinpointing your must-haves, you can quickly narrow down your options.

This focused approach will save you time, energy, and money, allowing you to find the perfect vehicle for your lifestyle.

Your monthly car payment isn’t the only cost you have to consider as a car owner; you’ll also want to factor in other costs like maintenance and potential repair costs.

Consider how many miles per gallon a particular car gets, for example, as fewer miles per gallon means you’ll need to pay more for gas.

Some car loans offer a higher interest rate for a longer period of time, helping you lower your monthly payment.

It’s important to calculate not only your monthly payments but also how much you’ll pay for the entire length of the loan terms. You may be surprised that you’d pay more because of accumulating interest over more years.

Used cars may have specific issues or additional wear and tear from their previous owners, so it’s important to know what’s going on under the hood of your vehicle before you buy it.

You may want to get an independent inspection done by a trained mechanic or other inspector to make sure the vehicle is in proper running order and doesn’t have issues that could lead to costly repairs and maintenance once you’re the owner.

Before it comes to you, a used car has a history with previous owners. Do you know what that history includes?

You can find out by running a history report through companies like Carfax and AutoCheck that can show you if the car had major mechanical issues or was in an accident before you decide to buy.

You won’t know how a car drives until you actually drive it, so get behind the wheel and see how it operates before committing to it.

Consider issues like whether the car accelerates properly, feels comfortable to drive, or makes noises that could indicate something brewing under the hood.

You’ll be buying a used car from either a dealer or a private party, so take some time to research the seller before you commit to buying a vehicle.

You may want to look for customer reviews for a dealer or ask for references from a private seller to ensure their trustworthiness.

You may be getting rid of one car to get another one, and your current vehicle may hold some extra cash for you.

Do some research before you trade in your car on websites like Edmunds or Kelley Blue Book to know your current vehicle's trade-in value before taking it to a dealer. Preparing yourself before you go can help you get extra cash for your trade-in.

It can be daunting to buy a new car, whether it’s new or used, but you can prepare yourself with research and some due diligence to help you save cash.

You’ll also want to look for the best car insurance rates to help you keep more cash in your pocket.