How to Know You’re Getting a Good Deal on a Used Car
Advice for determining how fair the price of a used car is
When you’re buying a brand-new car, you can easily tell if you’re getting a good deal because you have a consistent point of reference: the manufacturer’s suggested retail price. If the offered price is much higher or lower than that, you can gauge if it’s a bargain. However, if you’re shopping for a previously owned car, you don’t have that same standard to judge by. So how can you tell whether you’re getting a good deal on a used car or if it’s way overpriced?
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How to tell if the selling price of a pre-owned car is fair
Looking at any particular model, every brand-new unit is the same when it’s initially manufactured. But once someone purchases and drives one for the first time, that car will never be the same as any of the others. It will differ in mileage, accident history, wear and tear from road condition and driving habits, cabin damage, condition from maintenance and cleaning, storage, and geographical influences. Plus, local demand and competition will also change the value of a car depending on where it’s being sold.
With so many factors influencing the value of a used car, it’s important to have a reasonable idea of what is fair before you buy.
1. Consult a valuation guide
Although it’s not a perfect appraisal, valuation guides like Kelley Blue Book will take the information you give it on a car and gauge those factors to determine what a reasonable, average buying price would be. KBB calculates influences like sales trends, market history, and buyer demand — data you as a buyer wouldn’t know. This will give you a general idea of what a fair price is.
2. Look at similar models in your area
If you can find another seller in your neighborhood that is selling the same model in a similar condition for far less or far more, you’ll know if your potential car is priced fairly. Of course, you must remember that a low price might reflect major repairs the vehicle would require, so don’t assume any comparison is an exact equivalent.
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3. Ask for a third-party inspection
A reputable mechanic will be able to tell you if there are any major underlying problems with the car that would put its value below the asking price. It’s always good to get another expert opinion to ensure the price is fair for the car’s condition.
4. Buy from a trustworthy seller
Check user reviews for that vendor and make sure that you’re not buying from a sketchy seller who’s looking to make a quick buck off of you. In general, larger and more established vendors are most trustworthy. Because their reputation is riding on customer satisfaction and positive buzz, they’re more likely to avoid selling lemons that people will complain about, and more likely to price their cars at competitive rates that people will like.
Whether you buy a new or used car, getting a good deal is all about doing your research, knowing the model, and knowing the market. Don’t walk into a deal blind without having some familiarity with the car you’re intending to buy.
Aaron is unashamed to be a native Clevelander and the proud driver of a Hyundai Veloster Turbo (which recently replaced his 1995 Saturn SC-2). He gleefully utilizes his background in theater, literature, and communication to dramatically recite his own articles to nearby youth. Mr. Widmar happily resides in Dayton, Ohio with his magnificent wife, Vicki, but is often on the road with her exploring new destinations. Aaron has high aspirations for his writing career but often gets distracted pondering the profound nature of the human condition and forgets what he was writing… See more articles by Aaron.