Resources
Used Car Buyer's Guide
Contents:
Set Your Budget

When looking for a used car, we advise that you prepare yourself emotionally for a process that usually takes weeks, not days. The best starting point is determining how you plan to use the vehicle and what you have to work with in your budget. Be sure to leave room in your budget for pre-purchase inspections (link) and the cost of maintenance deferred by the seller. In our experience, 50% of the time, the first used car that excites you is not the car that you will actually buy because of issues that are revealed through the pre-purchase inspection process. As a result, it is wise to budget for at least two of these inspections ($300) and to reserve your excitement about any given car until the inspections are complete and you have understood the results. Keep in mind that most vehicle owners have known that they were going to sell their car for a few years prior to listing the vehicle, and so they have deferred maintenance and minor repairs for the next owner. These repairs normally cost the new owner $1000-$2000, depending on the age of the vehicle. We recommend that you leave space in your budget for these eventualities so that you are not alarmed and disheartened by the process of buying a used car. These experiences are normal.

Look for Maintenance - Not Mileage

Low mileage does not guarantee that a vehicle is a good one or a valuable one. The type of miles that the vehicle has (i.e. short trips, long trips, extreme weather conditions) and how the vehicle was maintained are the most important factors in evaluating the possible wear on a car. Many owners of low-mileage cars believe that since they barely drive the car, they barely need to maintain it. However, handling a car this way is frequently the most severe way to drive it. Finding a vehicle that has been cared for is the best way to get a car that will give you the most life out of your purchase.

Pre-purchase Inspections

Vehicle sales and repair providers have no industry standards and are very lightly regulated. The “inspection” that used and new car dealers perform is usually limited to items that pose an immediate safety or liability hazard. We routinely see dealer-inspected cars which have many more issues than were disclosed to the buyer. Even if the seller says they have inspected a car, it is wise to get your own pre-purchase inspection. Many used cars have well-hidden rust or previous major collision repair that does not get screened out by Carfax or the dealer. Since this industry is so lightly regulated, be sure to find a shop with a comprehensive, forward-looking inspection protocol. The shop should search not only for broken items, but also should assess the car’s maintenance history and current maintenance needs. A good repair shop will alert you of needed general maintenance as well as of preventive maintenance that should be completed soon. Keep in mind that although 95% of car problems are accessible, some may be too deeply buried for even the most thorough of inspections. We find major, sale-breaking issues with about 20% of the cars brought to us within the first half hour of our 3-hour inspection process. Even among the cars that make it through our inspection, only about 30% of them end up being purchased by the buyer because of long lists of deferred repairs and maintenance. If you are looking at a used car, please bring it in for inspection; we could save you some money. Frequently, the information we gather can be used to negotiate a price reduction with the dealer. Reputable dealers are good about lowering the price if an inspection reveals flaws in the vehicle, and it seems that most dealers do not knowingly try to sell you a bad car, they simply are not aware of what they have. However, if the seller will not let you take the car for inspection with no strings attached (except a waiver of liability), walk away. Be especially careful if they demand a sales contract and assure you that it is conditioned upon inspection. We’ve known several people who got burned by the specific language of such contracts, so read carefully before signing.

Questions for the Seller
  • Have the seller confirm the mileage, make, model and year. (ie. So this is a 1996 Honda Civic? And how many miles are on it?)
  • Are you the only owner? If not, how many owners has it had? Or, how did you get the car?
  • Why are you selling your car?
  • Has it ever been in any accidents or fender-benders?
  • Does your car burn any oil between oil changes? Does it leak any oil?
  • What repairs have you done on your car recently? (Ask about: engine work, transmission work, timing belt, tires, brakes, battery)
  • When was your last tune-up or service and what was replaced?
  • How often do you change your engine oil? (you will want frequency as well as mileage, i.e. some people change their engine oil every 3,000 miles, but it takes them nine months to go that far, especially with lower mileage vehicles. Such treatment can be very hard on engines.)
  • Do you have maintenance and repair records? May I have them?
  • What type of driving do you do? (i.e. short trips, freeway commuting, city, how many miles per trip, etc...)
Helpful Websites for Researching Used Cars
  • www.carfax.com: For $25-$30, Carfax gives you a month of unlimited access to car history reports by entering a vehicle’s VIN. The most valuable information found here is the number of actual owners and what locations the vehicle was licensed. This data allows you to understand under what conditions the car was driven and to predict how much rust it may have.
  • www.nwclassifieds.com: This site acts as a newspaper classifieds for the whole Northwest region.
  • www.autotrader.com: Auto Trader is a great site for finding listings with your exact specifications. Many dealers use this site.
  • www.edmunds.com: This is a great site to price used cars. Their calculation of local market value seems to be more realistic than other sources.
  • www.kbb.com: Kelly Blue Book is a popular source for checking the value of a new or used car. Many times dealers use the KBB price to list cars. KBB tends to reflect the higher end of the local market value of a car.
  • www.carfindersedmonds.com: If you want to buy a car, these guys can help. They act as a broker and help you find the car you want at a wholesale price. The service is not free but can be very helpful if you find yourself looking for a used car and wishing that you had an advocate or personal buyer with great connections.