Set the budget before the car
The sticker price is the smallest part of the decision. What matters is the monthly cost of keeping the thing on the road: payment, insurance, fuel, maintenance, registration and parking. A workable ceiling is fifteen percent of your take-home pay for all of it together, with the payment alone under ten. Get an insurance quote on the exact model before you fall for it, because premiums for a driver under twenty-five can rival the loan payment.
Choosing the right used car
For a first car, buy boring. A common sedan or hatchback that is three to six years old, with under 80,000 miles and a complete service history, has already taken its steepest depreciation and still has a long life ahead. Favor models with a long reliability record and cheap, plentiful parts over anything rare, tuned or luxurious. An old luxury car sells for little because it costs a great deal to keep running.
Run the seventeen-character vehicle identification number through a history report before you go to see the car. You are looking for a clean title, a consistent odometer record and no flood or major accident damage. Walk away from any title branded salvage or rebuilt, whatever the discount.
The test drive and inspection
- Start the engine cold, and be suspicious if the seller has warmed it up before you arrive.
- Drive for at least twenty minutes, including a stretch at highway speed and one hard, straight stop.
- Feel for a pull to one side, a vibration in the wheel, a clunk over bumps or a hesitant shift.
- Test every switch, window, lock and light, and run the air conditioning and the heat.
- Take the car to your own independent mechanic, which costs between one and two hundred dollars, and treat a seller who refuses as your answer.
Paperwork that protects you
A dealer must post a Buyers Guide on every used car stating whether it is sold with a warranty or as is, and as is means the repairs are yours the moment you leave. In a private sale, the name on the title must match the seller's identification, and the title must be free of liens. Get a signed bill of sale showing the date, the price, the mileage and the identification number, and do not hand over money without receiving the signed title.
Tip Keep a thousand dollars of your budget out of the purchase. Nearly every used car needs tires, brakes or a battery within its first year with you.
