4 Questions When Shopping for a Used Vehicle

Shopping for a used vehicle provides a more affordable option, but it’s important to ask the right questions to avoid costly mistakes. When you’re searching for a budget-friendly choice of a used car or truck, ask these four questions to feel confident with your purchase.

1. What’s Your Budget?

The biggest deciding factor when shopping for any vehicle is setting your budget. It’s best to set a savings goal and purchase a vehicle with cash instead of getting an auto loan since a vehicle is a depreciating asset that loses value over time. However, if you need transportation quickly, then you’ll need to apply for an auto loan. In either case, determine how much per month you can put toward either your savings goal or auto loan payment. Take into consideration all expenses, including insurance, gas, maintenance, and monthly payments. These expenses should be 10% or less of your monthly income. Stick to this budget when shopping and don’t be afraid to walk away from a sale if it doesn’t meet this target.

Once you’ve set your budget, search for vehicles that fit this price and include any must-have features. Texell’s Car Buying Service powered by TrueCar lets you compare new or used vehicles by make and model to see what others paid. You can also browse local inventory and view ratings and reviews.

2. Where Should You Shop?

Your options for shopping include a used vehicle dealership, a private seller, or online retailers like Carvana or CarMax. Certified pre-owned cars (CPOs) at a dealership usually have lower mileage and fewer previous owners, and the dealership thoroughly inspects the cars using a manufacturer-specified checklist. CPOs also come with a manufacturer-backed warranty and may include roadside assistance or other benefits. Keep in mind that CPO vehicles are more expensive than other used vehicles because they are newer and have been through a rigorous inspection.

If you’re buying from a private seller, ask how long they’ve owned it and why they’re selling the vehicle. This can give you an idea of its history and any issues. If they seem hesitant to answer, it could mean the vehicle needs repairs that could cost more than the vehicle is worth. Ask if they have clear ownership of the title, and avoid any salvage titles, or those declared a total loss by an insurance company. Be careful of “as-is” offers as this could mean the car needs major repairs. Ask to take a test drive and pay attention to strange noises or difficulty steering the vehicle and get an inspection before purchasing from a private seller.

Shopping for a vehicle online offers the convenience of searching a larger inventory and tools to help make an informed decision. However, one drawback is not being able to test drive or inspect the vehicle. Carvana and CarMax offer a return or exchange period, but it’s a brief time, from 24 hours to seven days. Another downside is that pricing is non-negotiable with the larger online retailers, but they are transparent about the price breakdown and total cost.

3. What is the Vehicle’s Value?

Knowing the value helps in negotiating the price when you’re ready to buy. Factors that determine the vehicle’s value include the year, make, model, mileage, any add-ons or modifications, and its overall condition. Use online tools like National Automobile Dealers Association (NADA), Kelley Blue Book, or Edmunds to research the vehicle’s worth and safety rating. Review any recalls and ask the seller about the maintenance history. If the price doesn’t match the value, ask the seller how they arrived at that price. This gives you more information about the vehicle’s history and helps with negotiating the price.

4. What is the Vehicle’s History?

A vehicle’s CARFAX report includes any history of damage, collisions, or repairs. Ask for the VIN number and look up this report so that you’re aware of its history and any outstanding recalls. Texell offers a CARFAX Vehicle History Report to protect members from salvage, total loss, structural damage, lemon, and flood vehicles. Learn more and other car buying tools at Texell.org.

If the vehicle has had several previous owners, it’s more difficult to assess its full history. The history and value determine your insurance costs, so make sure you have these details ready and get an insurance quote before finalizing the sale. Make sure you ask if the vehicle is registered and have a trusted mechanic inspect it before you buy it, so you are aware of any electrical or mechanical issues. Check to see if it’s still under warranty and know your options to keep your vehicle protected. Texell offers programs like Major Mechanical Protection (MMP), Guaranteed Asset Protection (GAP), Extended Warranty, and healthCAR to assist with costly repairs associated with unexpected breakdowns or a totaled vehicle.

When you’re ready to shop for a used vehicle, have a list of items you’d like, but be flexible to find an affordable car that gets you where you need to go safely. Take your time and research vehicles carefully. Most importantly, stick to your budget and look for a safe, reliable car.

If you wish to comment on this article or have an idea for a topic we should cover, we want to hear from you! Email us at editor@texell.org.