Where to Buy a Second Hand Car

Buying a second-hand car can be intimidating. For some people, even the thought of beginning their search evokes images of disreputable used-car dealers or warranties with excessive fine print and legal jargon. In this article, we'll look at the three most popular sources of second-hand cars and evaluate the pros and cons of buying from each of them.

Dealerships

Despite the stereotype of the shady second-hand car salesman, a dealership is usually good bet when buying a second-hand car. A dealership will normally test their cars to ensure they are in good mechanical condition, and are safe to drive.

Dealerships that specialize in quality pre-owned cars, like CarMax, offer the buyer more security because of their intensive scrutiny. You should also ask questions about the dealership itself. The Better Business Bureau can provide you with a wealth of information, including a record of customer complaints and legal actions filed by consumers.

Once you are satisfied that the dealership is reputable, and the secondhand car you are considering is mechanically sound, it's time to talk price. One of the downsides of buying a second-hand car from a dealer is that prices will tend to be a little higher than buying from a private seller. However, dealerships will normally negotiate on the price of a car, so you should never be afraid to make an offer on any vehicle in the lot.

The standard negotiating technique is to "lowball" your first offer. In other words, offer the dealer considerably less than you expect to end up paying. The idea is to have the dealer make a counter offer and eventually meet you somewhere in the middle.

Dealerships are used to this strategy, so they won't be shocked by your "lowball" offer -- even if they seem like it at first. Also, avoid arguing over price or debating specific selling points of the second-hand car. Simply state your offer and then say as little as possible afterwards. Resist the temptation to explain your offer or the reasoning behind it. Remember, when it comes to price negotiation, the less you say, the stronger your position.

Auctions

Auctions are another popular outlet for buying a second-hand car. The advantage of auctions is the lower prices they offer. But you must use caution; most auctions allow only a limited time to test drive or inspect the car. And you should be even more careful when buying from an online auction, which may provide only a photograph and description of the vehicle. It is especially important that you make use of the seller information provided by online auctions like ebay. These star coded details let you see how many transaction the seller has made and how satisfied other people have been by dealing with that seller.

Auctions are probably the least secure method of buying a second-hand car. Most auction buyers are after a "steal," and will often sacrifice a proper inspection of the vehicle in favor of a low price. Buying at auction is only recommended for the most experienced second-hand car buyers, and it helps if you are a certified mechanic. For everyday consumers, with limited mechanical knowledge, you're probably better off buying from a dealership or from a private seller.

In saying that however, it is fun to note that the first ever car sold on-line through eBay UK was a Ferrari so you can bet your bottom dollar that with caution and a clear head you can bag yourself a bargain.

Private Sellers

Probably the most popular way of buying a second-hand car is to use the classified ads to buy from a private seller. Often you can get a good deal, and most sellers will allow you ample time to inspect the car, go for test drive, or even have your mechanic check out the vehicle.

Never buy from a private individual without having the car inspected. If a private seller seems reluctant to allow your mechanic to inspect the vehicle, simply walk away.

In part three of this series, we will cover specific techniques to use when inspecting a second hand car before buying.