Chapter 5. Used Car Buying Checklists
Ditch the new car smell (because let's be real, it smells like plastic anyway) and step into the thrilling yet comforting world of pre-loved rides! New cars? They lose value faster than your phone battery on Pokémon Go. But used cars? They're like designer bags someone else already carried, so you get the same or better luxury for less. Plus, you might snag a gem – a late-model beauty that was originally pampered by the dealership itself. Imagine, a car with a past that someone else has already paid for the depreciation, still under warranty thanks to a CPO program, and ready to be your loyal companion.
The purpose of this section is to gather all the information you'll need to begin shopping and making the deal for a new car. All of the checklists and worksheets can be downloaded as a Zip file in PDF format, or edited online with Google Sheets.
Main Checklist
1. After completing the Set Your Needs and Monthly Budget worksheets covered in Chapters 1 and 2, get Deal Tracker worksheets where you will track the relevant information during your searches for easy comparisons and planning.
2. Research and choose body types, makes, and models on a few of the websites listed in Chapter 8 - Website Directory. and enter them into Deal Tracker worksheets. Focus on vehicles for sale within a reasonable driving distance so you can go check them out. Where to look:
- Franchised dealers with physical locations and online presence that sell the selected car brand/model as well as other brands.
- Online and physical location dealers that sell late models of all brands, such as CarMax, Carvana, EchoPark, and Hertz.
- Independent dealers that sell a random assortment of late and older models.
- Private parties, through sites like the Facebook Marketplace and Craigslist. This is a real crapshoot, so be sure to first read the advice in Appendix 2 - Private Party Sales.
3. Read dealer reviews by entering the dealer name, followed by "reviews" into a Web search, for example: "Carvana reviews". This is especially important if considering an online-focused dealer and you plan to have the car shipped without driving it or getting an independent inspection. You'll see a range of results to help prioritize your search from places like the Better Business Bureau, Consumer Affairs, DealerRater, Reddit, TrustPilot, Yelp, and YouTube.
4. Read car reviews and ratings on Consumer Reports and/or search the Web Kelley Blue Book for the year, make, and model, e.g. "2020 Buick Enclave reviews". You'll find plenty of up-to-date expert reviews, ratings, and videos as well as consumer opinions and experiences. Also check the reliablity and frequency of repair history on J.D. Power.
5. Check the value ranges at sites like CARFAX, Edmunds, J.D. Power, and Kelley Blue Book. For the best estimates, have the VIN or license plate state and number in addition to the year, make, model, color and details like mileage, condition, and optional features/trim levels. Also check asking prices for similar cars on the the top sales sites listed in Chapter 8 - Website Directory, then settle on a real-world value range and enter it into the Value Range field of your Deal Tracker worksheet.
6. Get a vehicle history report from AutoCheck, CARFAX, or VINAudit—you'll need the VIN or license plate state and number. Their reports consider market value based on historical data such as number of previous owners, past accidents, open recalls, title concerns, and service records. They are not free, but well worth the cost. Fortunately, many dealers offer free reports from one of these services.
7. Check for issues that may not be in the vehicle history reports
- Total loss data, salvage reports, state title information, and odometer information searches can be performed for a small fee through the National Motor Vehicle Title Information System (NMVTIS)
- Safety recall and investigation searches can be performed free at the National Highway Traffic Safety Administration (NHTSA)
- Insurance-reported total loss and theft history searches can be performed free at the National Insurance Crime Bureau (NICB)
8. Get the original MSRP or window sticker—not required, but it may be useful to know the original MSRP and all of the feature and option details, which can be found by entering the VIN at:
- GoodCar offers seven days unlimited access to VIN & plate lookups for $2.95. Includes MSRP, detailed specs, and all of the NMVTIS data, but not maintenance and repair data like CARFAX and AutoCheck.
- Monroney Labels offers original window stickers (aka the Monroney Label) for most cars, based on the VIN, for $9.99.
9. Go see the car(s)
- If it's being sold by a private party, it's critical to follow the recommendations listed Appendix 2 - Private Party Sales
- Ask the questions in the Initial Questions checklist
- Perform an inspection using the Inspection checklist
- Perform a test drive using the Test Drive checklist
10. Get a professional inspection from a qualified mechanic if possible. If it's a reputable franchised dealer and the car is a late model or a Certified Pre-Owned (CPO), this may not be necessary and, in fact, most dealers will not allow cars to be taken away for several hours for a detailed inspection.
If you don't know of a qualified mechanic who you can trust, want to avoid the hassle of scheduling and bringing the car to their location, or it would be too inconvenient for the seller, the Lemon Squad may be able to send an inspector to wherever the vehicle is located: www.lemonsquad.com.
11. If you want the car, go to Chapter 6 – Making The Deal.
