In today’s market, you may be more inclined to search for a quality used car over a brand-new vehicle. The catch is that buying pre-owned carries risks that new doesn’t, which is why knowing what to look for when buying a used car matters more here than anywhere else in the automobile market.
You can certainly purchase a certified pre-owned (CPO) vehicle for more peace of mind, given that they are low-mileage, relatively newer vehicles that come with a manufacturer’s warranty for used cars.
But, the model or options you want may not be available. In other cases, even if you spot the exact car you’re looking for, you may discover that it’s been woefully neglected and a financial nightmare to sort out.
Whether you’re choosing between a new or used vehicle you don’t have to make a blind purchase. With the straightforward used car buying guide outlined below, you’ll be able to sniff out the deal you’re looking for.
Just remember, of course, that even if you buy the most reliable, well-kept car you can find, it can still break down unexpectedly, which is why it’s wise to protect yourself with a Vehicle Service Contract.
Key Takeaways
What to look for when buying a used car comes down to four things: verified history, mechanical condition, honest behavior on a real test drive, and a fair out-the-door price.
- Get pre-approved at a bank or credit union before you shop.
- Cap the payment at 15% of take-home pay.
- Run the VIN for title washing, odometer fraud, and accident history.
- Inspect in daylight, then pay a mechanic for a pre-purchase inspection.
- Test drive 30 minutes across the highway, hills, and rough pavement.
- Negotiate the out-the-door price, never the monthly payment.
- Plan for repairs after the sale, not in the finance office.
Set Your Budget for Buying a Used Car and Get Pre-Approved First
Before you open a single listing, decide what you can actually spend. Run your numbers through a free auto loan calculator so you're working from a real figure instead of a hopeful one.
Edmunds puts the ceiling at 15% of your post-tax monthly pay for the loan payment alone, and the older 20/4/10 guideline caps your entire monthly auto cost. That means payment plus insurance, fuel, and maintenance should not exceed more than 10% of gross income.
Either way, the number that matters is total transportation cost, not the payment in isolation. Run your figures through Edmunds' affordability calculator before you fall in love with a listing.
After that, get pre-approved. Secure a loan offer from a bank or credit union before you talk to a dealership.
Pre-approval caps what you can spend and gives you a competing rate to hold the finance office against. If the dealer beats it, take it.
Your budget also decides how long this car has to last. Buying at the top of your range on a six-year loan means the payments and the repair bills will overlap, and keeping a car running past the ten-year mark depends as much on which vehicle you pick as on how you maintain it.
Pull the Vehicle History Report
Every used car has a paper trail. Run the VIN through Carfax or AutoCheck, then cross-check it against the National Motor Vehicle Title Information System (NMVTIS). Title washing, where a salvage vehicle is re-titled in a state with looser rules, is the one problem no inspection will catch.
NMVTIS doesn’t cover recalls, so check the VIN separately at NHTSA's recall tool. Open recall repairs are free at any franchise dealer, and plenty of sellers never bother.
What to Look For in a Used Vehicle
First up on our list of things to check when buying a used car is to consider the most important factors for a suitable used car: age, mileage, and reliability.
1. Age
A 20-year-old car with just a few thousand miles on the odometer has likely spent most of its life unused, which is a recipe for unseen problems. Rubber hardens and breaks down over time, which means that the car’s trim, hoses, and tires can be dry-rotted.
In addition, if the engine hasn’t run in years, it could be seized. If the fuel in its tank is more than six months old, it might have lost its combustibility.
Age also narrows what protection you can buy later. With few exceptions, manufacturers stop extending coverage past ten years or 100,000 miles, which makes coverage on cars past the ten-year mark a third-party question rather than a dealership one.
Now, there are cases where a car’s owner may have taken meticulous care of the vehicle and kept it in like-new shape, but it’s a little bit of a dice roll. As such, you’d be better served by a lightly driven, reasonably maintained example with 30,000 to 40,000 miles.
2. Mileage
On the subject of what to check when buying a used car, every vehicle reacts differently when its miles pile up. You’ll need to thoroughly research the specific vehicle you want and check its major service intervals, which are usually 30,000, 60,000, and 90,000 miles, but they can vary by car.
The required maintenance at these miles can involve duties such as:
- Replacing timing belts or chains
- Replacing spark plugs
- Flushing fluids, such as power steering or transmission fluid
- Replacing filters
- Inspecting and servicing climate control system and parts
- Inspecting the vehicle for any issues that need addressing
Understanding a car’s major service intervals is vital, so much so that it is one of the most important used car buying tips we can offer!
You might come across two examples of a vehicle you want, one with 55,000 miles and the other with 60,000 miles, for instance. While the example with fewer miles might seem like the better buy, it could have an expensive service on the horizon, whereas the car with the higher mileage may have already had it taken care of.
Also, keep in mind that Vehicle Service Contracts through CarShield have coverage with unlimited miles as long as you cover your car.
3. Reliability
No list of what to check when buying a used car can be rounded out without mentioning reliability. It’s important to research the overall reliability of specific vehicles, as just their age and mileage alone won’t provide enough information.
Some brands and models may offer incredibly poor reliability regardless of age or mileage. Others are dependable for hundreds of thousands of miles with only basic maintenance.
Starting Your Search
As for where you should be buying a used car, here are several common places to shop:
1. Buying a Used Car from Dealerships
At a dealership, you’re able to experience the ergonomics, performance, and various features of a car for yourself. Dealerships also offer a greater variety of payment options, such as cash or credit.
They’ll likely offer loan plans and extended warranties for used cars (another great option is a Vehicle Service Contract). You may even be able to trade in your current car toward the purchase.
In addition, it’s in a dealership’s best interests to be transparent, given that their livelihood depends on the trust of their customers. So, you also have more consumer protections with dealers.
If there’s an undisclosed issue with a used vehicle they sell you, for instance, you may be able to take legal action. Many dealerships will provide free Carfax reports so you can see the vehicle’s service history in advance.
You should also keep in mind that brand dealerships sell CPO vehicles. Even though one may be more expensive than a comparable example from a used car dealer or private party, the condition tends to be better.
2. Buying a Used Car from Private Parties
Buying a used car from a private party, whether you found it through newspaper classifieds or online platforms such as Craigslist or Facebook Marketplace, can be a fantastic way to get the lowest possible price on the exact car you want. With no overhead or other costs, there are no hidden fees or markups.
However, a private party seller has no obligation to be honest about the condition of the car. That usually means you’ll be taking a bit of a gamble should you choose to pursue private sellers.
3. Buying a Used Car from Online Marketplaces
There are plenty of sites, such as CarGurus and Autotrader, where dealers and individuals alike post their cars for sale. These sites allow you to refine your search so you can find exactly what you’re looking for.
You can narrow searches by brand, model year, mileage, specific features, body styles, and colors. You can also expand your search radius depending on whether you’re willing to travel to find the car you want. The site can even tell you whether a price is a good deal or not.
What to Check When Buying a Used Car
Start by asking questions, especially if the vehicle listing doesn’t give you all of the information you need. Ask about the following aspects of the car:
- Features
- Condition
- Whether it has ever been in an accident
- Service records
- Open recalls
- Corrosion
- Deferred maintenance
- Interior condition, such as stains or odors
- Tire tread
Many times, you can weed out potential vehicles with these questions. If you’re going to check out a car yourself, make a checklist of items you will look for.
Check for broken glass, squeaks, rattles, missing parts or trim, worn gas struts on the hood or trunk, signs of rust, repainted panels, and any other issues that may be difficult to glean from pictures or online descriptions.
Inspect the Car in Daylight
Never evaluate a used car at night, in the rain, or under a dealership's canopy lights. Direct sunlight is what reveals mismatched paint, uneven panel gaps, ripples in body panels, and bubbling where rust is working its way out from underneath.
Check for Flood and Water Damage
Open the door, sit down, and breathe. A musty or mildew smell that air freshener is clearly fighting is a warning sign.
Look for water lines low on the door panels, silt in the spare tire well, rust on seat rails and seat belt bolts, and fogging inside the headlights. Flood cars resurface after every major storm, and their electrical faults appear months later.
Look at the Tires and Fluids
All four tires should match in brand and size and wear evenly across the tread. Uneven wear points to alignment or suspension problems that cost real money.
Pull the oil dipstick: oil should be amber to dark brown, not gritty and not milky. Milky oil can mean coolant is getting where it shouldn't.
When considering what to check when buying a used car, it’s worth paying a mechanic to perform a pre-purchase inspection, as they’ll perform a more thorough inspection than most average consumers can provide. Their services can often price out potential repairs.
Final Checklist for Buying a Used Car
Protect yourself by arming yourself with knowledge! Here’s a final checklist for your used car shopping excursions:
- Research the vehicles you want, from the brands to the models to the model years. Make yourself aware of common problems and major service requirements.
- Inspect the car in person and take it to a competent mechanic for a thorough inspection. They’ll let you know about the condition of the car and how easy (and expensive) it will be to service.
- Get the vehicle’s history through both a Carfax and all the service records you can get your hands on.
- Take a test drive. Feel for worn ball joints (the wheel wobbles while braking). Make sure the brakes feel solid and don’t squeal. Feel the alignment and tire balance. Make sure the car idles smoothly and accelerates without hesitation. Check for looseness in items such as the shift lever, turn signal stalk, wiper stalk, and all latch handles.
- Make sure the price is fair. Use resources such as Kelley Blue Book and J.D. Power to see what people should be paying.
- Be ready to negotiate and never overpay. If the price can’t come down to a number you’re willing to pay, walk away and look elsewhere.
If you follow these tips on buying a used car, you’ll have a much better shot at ending up with the vehicle you want at a price you’ll be happy to pay.
How to Test Drive a Used Car
Give the test drive 30 minutes minimum and cover:
- Surface streets
- A highway on-ramp
- A hill
- A stretch of rough pavement
A car that feels fine on a smooth loop around the dealership can rattle, wander, or run hot once you work it. Keep the radio off the entire time so you can hear how the transmission shifts under load and whether anything clunks over bumps.
Then find an empty, flat lot. Brake firmly from about 30 mph and confirm the car stops straight without pulling or shuddering.
Cycle every accessory while you're stopped: air conditioning, heat, wipers, windows, locks, mirrors, and every exterior light.
Negotiate the Price, Then Read the Paperwork
Negotiate the out-the-door price: vehicle cost plus taxes, dealer fees, documentation charges, and registration, as one number. Never negotiate the monthly payment, which can be made to look small by stretching the loan to 84 months.
Ask for the out-the-door figure in writing before financing enters the conversation. Used car protections also vary by state, so check with your state attorney general's office on what a dealer actually owes you.
Expect add-ons in the finance office. Paint sealant, fabric protection, and VIN etching are easy to decline.
Mechanical coverage can make sense, but a plan rolled into your loan at 9% interest is not the same purchase as one you shop yourself. Make sure to read the claims and repair shop process in full before you sign.
Protecting Your Vehicle With a Vehicle Protection Plan
Knowing what to look for when buying a used car saves you money on the day you buy. What happens eighteen months later is the part most buyers never plan for.
Without the right Vehicle Service Contract in place, a single unexpected breakdown can undo everything you negotiated.
CarShield markets vehicle service contracts written for used vehicles. They range from powertrain basics to broader mechanical coverage, with terms priced against your vehicle's age and mileage rather than a single flat plan. With plans to fit any budget, start shopping for the right one for you.
*Pre-existing issues are not covered. See contracts for exclusions.
Frequently Asked Questions
What’s there to know before buying a used car?
Check the vehicle history report. A VIN report takes two minutes and surfaces a salvage or flood title, an odometer discrepancy, or a reported accident. No test drive will reveal any of those.
How Many Miles Is Too Many for a Used Car?
There is no universal cutoff. A well-maintained vehicle at 120,000 miles with complete service records is often a better buy than a neglected one at 60,000. What matters more is whether the major service intervals were performed.
Should You Buy an Extended Warranty on a Used Car?
That depends on the vehicle and on how you would absorb a $2,500 repair bill out of pocket. Third-party Vehicle Service Contracts can be purchased at any point, not only before a factory warranty expires, so the dealership's finance office is not your only window to decide.
