Used Cars FAQs

When purchasing a used car from a dealership, the process is nearly the same as buying a new car. Identify the vehicle you want, reach out to the dealership to do a test drive, and negotiate the purchase terms. The purchase process is also very similar when buying a used car from a private party. However, the private party may be unwilling to accept financing and may require cash payment.

The answer to this question depends on your own personal financial situation, as well as the length of time you are going to keep the car and your expected mileage. Generally, suppose there’s a slightly used version of the same vehicle with the features you want. In that case, you will take less of a depreciation hit, as new cars lose value as soon as they are driven off of the lot. Just know that the exact trim, color, or features you want may not be available.

Negotiating the price of a used car is very similar to what you would do when buying a new vehicle. In this case, though, you should try to find several other used cars identical to the one you want that are for sale. Features, age, and mileage are most important when comparing a seller’s car to another vehicle. If you take the car for a test drive, identify any flaws you find with the car, such as small dents or interior damage, and use these as a way to bring down the price.

Yes, it is possible to lease a used vehicle. Although, this will depend on the vehicle you want and the dealership you are working with. Not every dealership will allow shoppers to lease used inventory. When leasing a used car, it is important to negotiate the capitalized cost (the vehicle's total value) just like you would the MSRP if you were purchasing a new car. You'll then want to compare the lease's overall costs to make sure it is a good value versus buying.

There are many factors to consider when determining whether the mileage on a used car is acceptable. The average vehicle in America is roughly 12 years old, and the average American drives around 13,500 miles per year. This would mean the average car on the road today has somewhere close to 160,000 miles. A best practice would be to buy a used car at least 3-4 years younger than the average, with a correlating 40,000 - 50,000 fewer miles on the odometer.

Used car shopping is typically best after the new year, especially near Martin Luther King Jr. Day. New car sales a
re highest in the last few months of the year. Because of this, dealers are taking more trade-in inventory than usual. They will want to sell this inventory in the slower new car sales months of January, February, and March.