In the current automotive market, with new car prices soaring 27.8% higher than pre-pandemic levels, buying a used car is a financially wise choice for those looking to save money.
Apart from the financial benefits, selecting a used car allows you to bypass the depreciation that new cars experience immediately after purchase. You’ll also enjoy lower insurance premiums and reduced registration expenses and contribute to environmental sustainability by prolonging the lifespan of an existing vehicle.
If you’re considering upgrading your vehicle but seeking a budget-friendly alternative, exploring the pre-owned market is a smart decision amid the rising costs of new cars. Discover what to look for when buying a used car.
The Benefits of Buying Used Cars
While a new car might have the latest tech and infotainment options, there are numerous advantages to buying a used vehicle, including:
- Cost savings. The most immediate benefit is the lower purchase price of a used car compared to a new one. Used car prices are about 5.2% lower than just a year ago. And the savings extend beyond the sticker price to lower registration fees, taxes, and insurance premiums.
- Depreciation: A new car can lose up to 40% of its value within the first five years. A used vehicle has already undergone this steep depreciation curve, meaning you’ll likely face less depreciation over time, offering better value retention.
- More car for your money: Buying a used car often means you can stretch your budget to include vehicles that may have been out of reach when new. For the price of a standard new car, you could get a used car with more advanced features, such as a better engine, higher-quality interior materials, advanced technology, or additional luxury amenities.
What to Look for When Buying a Used Car: Selecting the Right Type of Car
Choosing an appropriate used car involves considering your lifestyle, daily requirements, and personal tastes. Knowing the benefits of various car types is crucial for an informed decision.
Sedans
With a design ideal for urban settings, sedans are an excellent choice for city driving and regular commutes. Most sedan models are also highly fuel-efficient compared to larger vehicles like SUVs or trucks, leading to lower gas expenses and reduced environmental impact.
Sedans often provide a smoother and more stable ride due to their lower center of gravity, making navigating through traffic and tight urban spaces more comfortable.
Their compact size makes parking in tight spots easier, and they’re generally more affordable than larger vehicles in terms of purchase price and insurance and maintenance costs.
SUVs
SUVs are an excellent choice if you need a vehicle with ample space and versatility. Many larger SUVs offer third-row seating and spacious interiors that accommodate more passengers than sedans and provide plenty of room for cargo, making them ideal for families, road trips, and those with active lifestyles.
The seating in SUVs is usually higher than in other types of cars. This higher driving position provides a better view of the road for improved visibility and safety.
Trucks
Trucks are designed for hauling and towing heavy loads, making them perfect for work-related activities that involve transporting heavy equipment and materials, as well as trailers or boats.
Trucks are a fantastic choice for off-road adventures thanks to their durable build and specialized off-road features. They typically come with four-wheel drive for better grip in challenging terrain, high ground clearance to easily overcome obstacles, and tires that handle everything from mud to rocks. The suspension is built to absorb the bumps and jolts of off-road driving, making the ride smoother.
Trucks also have protective skid plates underneath the chassis, convenient tow hooks, and winches to navigate uneven terrain while off-roading and locking differentials to keep the wheels moving together on slippery ground.
What to Look for When Buying a Used Car: Inspection
Most used vehicles at dealerships undergo rigorous inspection and testing before they are displayed on the lot. However, before buying a used vehicle, you need to conduct your own inspection. Some critical areas of the car to look at include:
Exterior Inspection: Body and Tires
A thorough exterior inspection of the body and tires can provide valuable insights into the car’s history and current condition. When inspecting the car, look over the body for any dents, scratches, or rust spots, as these could be indicators of past accidents or a lack of proper maintenance.
Pay attention to any areas of the body with mismatched paint or uneven gaps between the body panels, which might suggest that the car has undergone repair work after an accident.
Inspect the tires for signs of uneven wear, which could point to potential alignment or suspension problems. It’s also crucial to check that the tire tread depth is at least 2⁄32” to ensure safe driving conditions.
Interior Inspection: Upholstery and Controls
During the interior inspection of a used car, closely examine the upholstery. Look for signs of excessive wear, such as significant fading, tears, or deep stains, as these can indicate the car’s level of use and care.
You should also test all the vehicle’s controls, like the A/C, audio, and infotainment system. Make sure the air conditioning blows cold air, and the heater works. Check the audio system for sound quality and proper functioning of all speakers. If the car has a navigation system, ensure it powers up and responds accurately.
Also, inspect the dashboard for any cracks or damage, verify that all interior lights are operational, and check any electronic displays for clarity and responsiveness.
Under the Hood: Engine and Fluids
A thorough under-the-hood inspection can give you a clearer picture of the car’s mechanical health and maintenance history. Start by checking for any signs of leaks or corrosion around the engine, as these can be red flags for serious underlying issues. Listen for any unusual noises when the engine is running, such as knocking or hissing, which could indicate mechanical problems.
The oil level should be within the recommended range on the dipstick and not overly dark or gritty, as this suggests it hasn’t been changed regularly. Also, inspect the coolant, brake fluid, and transmission fluid levels; these should be at the appropriate marks, and the fluids should be clean and free of debris.
Ensure that you also examine the belts and hoses. Look for any visible cracks, wear, or signs of brittleness, as these components are vital for the car’s operation and can be costly to repair if they fail.
Request the Vehicle History Report
An integral part of inspecting a used car includes reading the vehicle history report. This document provides details about the car’s past, including information about previous accidents and repairs.
The vehicle’s history can impact its safety and potential resale value. You should also check the vehicle’s maintenance history. If the car has been regularly serviced and well-maintained, it’s likely reliable.
If you can’t get a copy of the vehicle’s history, you can run the vehicle’s vehicle identification number (VIN) through a service like Kelley Blue Book. This will unlock a full digital vehicle history report, including whether it has been auctioned, stolen, or involved in serious accidents.
Look for major red flags in the report, like a salvage title. This means an insurance company considered the car a total loss, often due to serious damage. Also, watch for signs of flood damage – musty smells, water stains, or silt in strange places – as these can cause ongoing mechanical and electrical issues. Checking for these issues is vital to avoid future costly repairs.
What to Look for When Buying a Used Car: Taking the Car for a Test Drive
The test drive allows you to assess how the car handles and performs on the road. However, it’s not just about how the car feels; it can also help uncover potential issues influencing your buying decision.
Some things to check during your test drive include:
- Engine performance: Pay attention to how the engine sounds and responds. Any unusual noises like knocking or hissing could indicate problems like worn bearings, issues with the piston, or a vacuum leak.
Also, assess the acceleration and power delivery. Does the engine struggle or hesitate during acceleration? This may be due to various issues like fuel delivery problems, clogged air filters, malfunctioning sensors, or issues with the ignition system. - Brake responsiveness: Test the brakes at various speeds to ensure they are responsive and don’t cause the car to pull to one side. If it pulls to one side, it can mean that the brakes are unevenly worn down and may pose a safety issue. Also, listen for any grinding or squeaking noises, which can indicate deteriorated brake pads or rotors.
- Steering and handling: While driving, check how the car handles. The steering should be smooth and responsive, not overly stiff or loose. If the steering feels unusually stiff, it could be a sign of problems with the power steering system, such as low power steering fluid, issues with the power steering pump, or problems with the steering rack.
If the steering feels too loose, it may be an issue with the steering components, such as worn steering racks, loose steering belts, or problems with the suspension system, which can be costly to repair or replace. - Suspension and ride comfort: Pay attention to how the car handles uneven roads. Excessive bouncing or instability over bumps could indicate suspension problems, like worn shock absorbers, damaged springs, or issues with bushings or ball joints.
- Transmission operation: If the car is automatic, it should shift smoothly without jerking or slipping. Ensure the clutch engages smoothly and doesn’t grind when shifting for manual transmissions.
- Odors: Stay alert for any strange smells while driving. A burning smell could indicate an overheating engine or a slipping clutch, while a musty smell might suggest water damage or mold.
Negotiating the Price for Your Used Car
Start your negotiation by researching the car’s fair market value with resources like Kelley Blue Book or Edmunds. This could help you make a case for a lower price. When you negotiate, it’s essential to be both respectful and assertive. Remember, it’s okay to walk away if the deal doesn’t fit your budget or if you feel pressured.
Know your budget limits and what you’re willing to bend on. Open the negotiation with an offer lower than you’re ready to pay, giving you room to maneuver.
If you find any issues or potential future costs during your inspection, use them as leverage to bring down the price. Stay patient, let the seller come back with counteroffers, and maintain control over how the negotiation unfolds.
Getting the best price can often be about timing as much as your negotiation skills. Consider shopping towards the end of the month, as dealers might be looking to hit their sales targets. To back up your offer, it’s a good idea to come prepared with documents, such as printouts of the car’s price on various websites or quotes for similar cars nearby.
Applying for a Used Vehicle Loan
You need the right financing to get a car that matches your budget and your lifestyle. At Hometown Chrysler Dodge Jeep Ram, we can help with your used car financing needs.
Use our online calculator for an instant loan rate, then easily apply for financing through our website. We cater to all credit types and even offer solutions for those without credit. Our strong relationships with lenders mean we’re dedicated to finding the right car loan for you.
Trading in your vehicle at Hometown Chrysler Dodge Jeep Ram is a straightforward way to help lower the cost of your next car. Start by getting an estimate of your current car’s value using our online Trade-In Value form. It’s quick and easy, providing a fair market value estimate in minutes. Just input details like your car’s make, model, mileage, and ZIP code.
Next, schedule an appointment to bring your car to our Albion, MI, location. Our team will inspect it, review its history, and finalize the trade-in value. This amount is then deducted from the price of your new or used Dodge, Chrysler, Jeep, or Ram vehicle.
Find Your Used Car at Hometown Chrysler Dodge Jeep Ram
Understanding what to look for when buying a used car is crucial to ensure you get the right vehicle for your needs. At Hometown Chrysler Dodge Jeep Ram, we’ll guide you through every step, from inspecting the vehicle to securing financing, ensuring a smooth and satisfying purchase.
Ready to find your perfect used car? Visit us in Albion, MI, or browse our inventory online. Let us help you drive away with a great deal!
