Buying a Used Car: A Complete Guide for First-Time Buyers

Buying a brand-new car is out of reach for many people, which makes buying a used car a smart alternative to fulfil their needs. Whether you're purchasing from a used car dealership, a private seller, or an auction, understanding what to look for can help you avoid costly mistakes and find a reliable vehicle. 

From researching a vehicle’s history to getting a professional mechanic’s opinion. And test driving a prospective car, knowing exactly what to do, helps first-time buyers avoid unnecessary expenses. This guide will explore the many aspects that buyers should research before getting behind the wheel of a car that is not brand new.

Where Should You Buy a Used Car From?

You’ve decided to buy a used car; now the next step is knowing where to look for it. In America, there are three common places used for purchasing used cars: 

• a reputable dealership

• a private seller

• auctions 

Every option has certain advantages and disadvantages.

Buying From a Used Car Dealership

Dealerships are the safest option when it comes to buying a used car. They conduct maintenance on their vehicles before putting them up for sale. Most dealerships also provide financing options and/or warranties for their inventory. Buying from a dealership also comes with the added security of knowing that licensed dealers are bound by federal law to follow certain safety standards.

Buying From a Private Seller

Buying from private sellers is cheaper than buying a used car from dealerships. But that price tag comes with an extra responsibility of thorough inspection. Buyers need to confirm ownership details, the vehicle’s history, and even hire an independent mechanic to inspect the car.

Because cars purchased from private sellers are typically sold “as-is.” Be aware that there are limited legal recourse if a defect is discovered after the purchase.

Buying From an Auction

Although auction-purchased cars are cheap, first-time buyers should be aware that they also have the highest level of risk. Because most auction vehicles are bought “as-is.” These buyers have the lowest legal protection if an issue arises after the purchase. It can also be hard to test-drive cars purchased from auctions. Because many auctions sell vehicles without allowing buyers to inspect and test-drive a car beforehand.

Unless buyers know what to look for, they should not buy from auctions.

Set a Budget

Before searching for a used car, set a realistic budget based on your financial situation. The budget should account for expenses like fuel, vehicle maintenance, and repairs. There are additional expenses like taxes and insurance.  It is advisable to evaluate all these expenses, as it will help visualize how much you can afford to spend on a car. 

Research Before Buying a Used Car 

Before looking for a car, buyers should know about their needs and which options can fulfil them.

Fuel average, parts availability, insurance costs, everything should be researched. Research also helps in narrowing down what you want. So instead of looking at every car, you know what you are looking for. 

Find an Independent Inspector

If you are buying a used car independently,  try hiring a mechanic to inspect it. It is a really smart move as the inspector can discover issues with the car’s engine, transmission, frames, and more. They can identify flaws that normal drivers would totally ignore. By spending just a small amount of money on a pre-purchase inspection, people can save themselves a lot of money and stress from unexpected expenses.

Check the Vehicle History Report

A vehicle history report can provide car buyers with valuable insight regarding a car’s background. Before buying a used car, review the report and pay attention to the following items:

• VIN: Cross-verify the VIN number on the dashboard with the VIN number on the vehicle history report. 

• Mileage: High mileage is not an issue. But make sure that the number on the odometer is not forged.

• Salvage or junk status: Vehicles that have been in accidents should be avoided. Due to the chances of ongoing mechanical issues.

• Mileage discrepancy or rolling odometers:  Rolled odometers and inconsistent mileage figures may indicate potential issues with the car.

• Hail, flood, and fire damage: Environmental damage can lead to ongoing mechanical issues that buyers may not be able to afford.

• Lemon status: Buyers should steer clear of cars that came back to the dealers due to persistent mechanical problems.

• Rental or taxi status: Understand that cars that were used for rental or taxi purposes require more maintenance. And they also have high road miles.

• Theft or lien: Always check if the car has been reported stolen or reported for insurance fraud. 

How to inspect a used car

At Outlaw Motor Company, we've helped Chicago drivers purchase reliable used vehicles for over 20 years. One of the biggest mistakes first-time buyers make is skipping a professional inspection before buying a used car. Look out for the following red flags:

• Unusual paint jobs and panels

• Rust underneath the car

• Uneven tire wear

• Leaking fluids

• Cracks on the windshield

• Heavy wear and tear on the car’s interior

• Dashboard warning lights

Additionally, buyers should ensure that all car parts function as intended. By opening and closing every door, the front and rear trunks, and other movable parts. 

Before test-driving the car, manually check that everything in the car’s interior functions correctly. Check the doors, windows, AC, locks, and everything else.

How to Test Drive a Used Car 

While test-driving, a person should invest at least 20 minutes on the road. It is enough to examine how the vehicle performs on various types of terrain. The engine should be turned on when it is cold. Make the engine sit idle for at least five minutes to reveal strange noises or smoke.

Accelerate slowly on the road to check for slippage and if the acceleration is smooth. Apply the brakes slowly to test for unusual sounds and squealing, and pay attention to whether the car jerks when changing gears. A test drive should be done on the road and on the highway.

If there are any strange sounds, shifting problems, warning lights, or poor vehicle response, continue searching for a better car.

Ask About the Car’s Maintenance Records

Asking about a car’s maintenance records is one way for first-time buyers to determine if the car has been well-maintained. To do this, first-time buyers should ask the seller questions like:

“I like to stay on top of maintenance for any car that I buy. When was the last time this car was serviced?” and “what maintenance has been done on it?”

Questions help buyers gather information about the vehicle’s general maintenance. Ideally, try to buy cars that have had regular scheduled maintenance, including oil changes, tune-ups, and other scheduled maintenance.

Ask Why the Seller is Selling the Car

Asking the seller why they are selling the car is one way to determine whether the car has any hidden defects.

First-time buyers should research the car’s history, including who owned the car before being put up for sale, and ask the following questions:

• If the car has changed hands several times

• If a previous owner sold the car within a year of buying it

• What maintenance has been done on the car

• If the car seller is willing to answer questions about the car’s history

In some cases, cars that are sold in a short period of time or changed hands multiple times may have hidden defects that the previous owner did not disclose. This is particularly true. Do not continue if the seller is reluctant to provide answers about the car’s history.

Review the Paperwork Before Buying a Used Car 

Before signing any paperwork, always review all documents concerning the sale of the car. Make sure to double-check the vehicle’s title and VIN. Ensure that the car’s registration documents, service records, and relevant paperwork provided are up-to-date and valid.

Looking for a used car dealership in Chicago?

Are you Looking for a quality used car in Chicago? Visit Outlaw Motor Company, a trusted used car dealership in Chicago serving drivers since 2004. Every vehicle on our lot undergoes a comprehensive 120-point mechanical inspection. You're getting a reliable pre-owned vehicle.

Whether you're looking for your first car, a dependable family SUV, or a work truck, we offer a wide selection of used cars for sale along with flexible financing options for a variety of credit situations. If you don't see the vehicle you're looking for, our Car Finder service can help locate the right match based on your needs and budget.

Browse our inventory today or contact our team to find the right vehicle with confidence.

FAQs

What should I look for before buying a used car?

Inspect the car, verify the VIN, and the vehicle history report. Make sure to review the maintenance records and take a test drive.

How long should I test drive a used car for?

A used car test drive should always be at least 20 minutes to ensure that the car runs smoothly on different terrains.

Is a vehicle history report important?

A vehicle history report is always important when buying a used car. It provides insight as to whether a car has been in an accident, has a clean title, or has any other issues.

Should I hire an independent mechanic to inspect a car before buying it?

Yes, hiring an independent mechanic for inspection before buying a used car can help you discover mechanical and other defects.

Is buying a used car from an auction a good idea?

Auctioned cars are usually bought “as-is” and with limited legal protection, if an issue arises after the purchase.