Buying a used car is a financially smart move when you need a new car. Brand new cars are selling for such high prices that they depreciate significantly the moment you drive them off the lot. Purchasing a preowned car, truck, van or SUV can still get you an extremely nice daily driver. However, used cars are just that; used, which means they have wear and tear and may have issues. Knowing what to look for will help you avoid buying a secondhand lemon or falling for a salesman’s spiel.

Be Prepared Before Shopping for a Pre-Owned Car

Secure Your Own Financing

Get the Vehicle History Report

Most dealerships provide this automatically for free. If they don’t, it’s worth paying for if you are truly considering buying the car. If the salesperson seems reluctant to show you the history of the vehicle, you should consider passing on this one. The report usually shows how many owners the car has had, how many accidents it’s been in and its service over the years. This is important information you should have before you make a final decision.

Don’t Skip the Test Drive

The test drive is a pivotal point in the car shopping process. Pay attention to how the car handles, any unusual noises it makes and any signs of previous bodywork. Note the smell of the interior. Does it smell like mold or mildew? It may have significant water damage, such as after a storm or flood. You’ll want to skip that wet mess.

Check the Car’s Title

First, make sure the seller has the title for the car on hand. Ask to view the title so you can check for information that indicates it’s been wrecked or is a salvage title. Verify the odometer and ensure there are no outstanding liens on this vehicle. If they make excuses about why you can’t see the title, then you probably should find a different dealership to do business with.

NOTE: Even if you see the car’s title, you should still check the vehicle history report.

Get the Most Value from Your Trade-In

Used car values have increased just like new car prices. Many dealers are trying to get trade-ins to give their inventory a boost. This means you have the upper hand in negotiating a fair trade-in price for your current vehicle.

Before you ask the dealership to make an offer, check pricing resources like Edmunds or Kelley Blue Book. You can even check online marketplaces to see what your make and model are currently selling for on the open market.

Another option for trading in your car, truck or van is to sell it to the highest bidder. Places like Carmax will buy your car and give you a check for the amount agreed upon. You can then use this as a downpayment once you agree on a sale price for your next car.

You’re Not Obligated to Buy the Extended Warranty

Before signing on the dotted line for the extended warranty the financing department is offering, do your homework. Who is the carrier? What is covered? Who accepts this warranty? Can you find a better deal elsewhere? Probably.

Many buyers don’t realize that you can purchase your own after you buy the car. Also, check to check to see if one already exists for your vehicle. Sometimes, the factory warranty hasn’t expired or the previous owner purchased a transferable warranty.

Know When To Walk Away From A Bad Used Car Deal

Buying a pre-owned vehicle can be a great deal if you know what to look for and what to avoid. As always, if a sale seems too good to be true, it usually is. If something about the sale feels off, you can choose to walk away. It’s a lot harder to sell a lemon to someone who is well-educated in shopping for the best car they can find.