Buying a Used Car: A Checklist to Make It Easier

Option 1: Buying a certified pre-owned car through a dealership

Dealerships offer the traditional in-person sales experience. Many display their pre-owned inventory online, so you can start searching there, or simply visit a sales lot.

You’ll notice the term “certified pre-owned” at many dealerships. This means the car has been sold by a brand-name dealership, inspected and then reconditioned with factory parts. The benefit is that it’s usually in fairly good condition and comes with a solid warranty. The drawback is that it might be slightly more expensive than buying a used car elsewhere. According to data from the automotive resource Edmunds, many consumers end up paying a 6% to 8% premium markup for a three-year-old certified pre-owned car.

Keep in mind, you may be able to negotiate a lower price at a dealership, for instance, by shopping for a car during slower months or at the end of the month when salespeople are trying to meet quotas.

Option 2: Buying a noncertified pre-owned car through a dealership

Many car dealerships also have other used, noncertified cars. These cars don’t necessarily get the same level of care and protection, but they do get an inspection and they may be more affordable, too.

If you find a noncertified pre-owned car you like, take extra care to review the vehicle’s history. You may want to request an additional inspection by a mechanic you trust, too. Without the dealership’s precertified warranty, you’ll want to do your own due diligence. 

Option 3: Buying through an independent dealership

Independent dealerships aren’t associated with any particular brand and offer a variety of car brands and models.

Independent dealerships allow you to look closely at different brands in one place and even test drive them. Employees of independent dealerships usually stay hands-off during the sales process, so you don’t feel pressured to buy. In fact, some have a policy against negotiation. In other words, if you find a car at one of these dealerships, the price marked is the price you’ll need to pay.

On the other hand, another type of independent dealership may be willing to negotiate.

Option 4: Buying through an online car retailer or online dealer

Searching for and buying a used car online has never been easier. Not only is it incredibly convenient, but it can give you access to a variety of cars nationwide. In fact, some online car retailers allow consumers to purchase a car completely online, and they’ll even deliver cars right to your home.

Option 5: Buying through a private seller

Last, but not least, you may find a great deal on a used car from a private seller. Often, you can’t beat the price because private sellers aren’t associated with a dealership. But be aware and careful to avoid scams when you buy a used car from a private party. After all, a lot of personal information is exchanged, so you don’t want to be a victim of identity theft or title scams.

Check out websites like Craigslist and Facebook Marketplace, skim community publications, and talk to friends and family members. Once you find a car you’re interested in, contact the owner and ask questions about the vehicle’s history, inspection, mileage and more. It’s important to determine if there’s still an auto loan. If so, then you’ll need to contact the lender to sign the final paperwork. Lastly, you’ll also want to look closely at the most recent vehicle inspection report and ask the owner if you can test drive the car.