Buying a Used Car from a Dealer (The Right Way)



buying a used car will always suck
because you don't want to get ripped off and you don't want to end up in a car
that you totally regret buying now in this video I'm going over the three key
steps on how to buy a used car from a dealer so that you can buy one knowing
that you're getting the best value possible if you just found this channel
I'm Jason with honest finance and I make a lot of videos on different financial
topics so if you are interested feel free and subscribing or at least give
this video a like and now onto buying a used car so if you're shopping for a
used car there are definitely some advantages over buying new to consider I
mean think about the fact that most new cars lose about 30 to 40 percent of
their value in just the first five years and when most of these cars are five
years old they're probably only gonna have about sixty thousand miles on them
so that is a really good deal considering it's 40 percent cheaper than
it was when it was new think about it like this
would you rather buy a brand new crappy little commuter car with roll-up windows
for $15,000 or would you rather buy a used car with 60,000 miles for the same
price with every single feature on the planet upgrades depreciate the most on
new cars so if you want Bluetooth leather seats and all that kind of stuff
then buying used is something to really consider and not to mention the used car
is probably a lot safer too because it was more expensive to begin with keep in
mind that the best value for a used car is when they're only about two to eight
years old and they only have 24 to 96 thousand miles on them this is the best
time to buy a car because it'll be plenty reliable and the worst of the
depreciation is over with now obviously your budget is important here so make
sure to buy a car that you can afford but just keep in mind that its best
value is gonna be before it hits ninety six thousand miles and sometimes buying
a new car like a year-end one might not be that much more expensive than a used
one so it is something to consider but if you are open to buying a new car then
you can watch this video right here now you've got to understand there are three
key steps in order to get the best value in buying a used car from a dealer
you've got to do a lot of research on the car you've got to get the best price
for the car and you've got to get the best financing for the car as well now
when it comes to buying a used car research is huge because they still cost
a lot of money and the last thing you want is some
random repair bill right after you buy the car you'll want to check Edmonds
comm TrueCar comm and Kelley Blue Book for the best online research for car
buying these websites will help you decide which car is right for you and
what you should be paying for it the first used car I ever bought was a
huge mistake because I didn't do enough research before I bought the car I paid
about three thousand dollars too much for that car and I found out after the
fact that it was a rental car and it had been smoked in and to all you smokers
out there do not smoke in your car because the resale value will go down
because of the smoking now obviously you need to research the car safety and its
resale value but also pay attention to its repair costs and the maintenance
schedule as well trust me you don't want to buy a used car that's right on the
line to needing a bunch of repairs done and you'd be surprised at how many cars
out there don't require any maintenance until a hundred thousand miles so keep
that in mind when you're doing your research cars are so advanced these days
that the hundred thousand miles stigma needs to end for most of the cars out
there and also before you buy a car make sure to call up your car insurance and
find out how much more it's gonna cost you for the new car that you're looking
into you don't want to go buy a car and then after the fact realize that your
car insurance costs way more because of the car that you just bought so just
call up your insurance ahead of time so that you know how much more or less the
car is gonna cost to insure so once you've done your research and you know
exactly which cars you want to go look at and go check them out at a few
dealerships you'll want to visually inspect the car for any dings scratches
stuff like that and you'll want to take it for a good test drive as well and
it's a good idea while your test driving to check what's called the engine run
time because this is going to give you the best indicator of the type of miles
that have been driven on the car so let's say that you're driving a truck
with only 50,000 miles on it but it's got an engine run time of thirty three
hundred hours all you're gonna do is take fifty thousand and divide that by
thirty three hundred which is going to give you 15 which is how many miles per
hour that car has averaged over the course of its life and in this case 15
would be a bad indicator that the truck has been to a lot of work sites or that
it's done a lot of city driving but let's say that the average came back at
like 30 or four miles per hour then that's a lot better
to me knowing that the car has done a lot of highway and freeway miles instead
of City most of the newer cars these days do log engine run time so just pay
attention if you're looking at a newer car here's just a quick look at the log
that's currently running in my car no matter what time of year it is make sure
to check the AC and the heater just to make sure you don't have any surprises
when you actually need to use them and make sure to check all the controls in
the car and even turn up the radio to make sure that the speakers aren't blown
because trust me this happened to me when I bought a used car and that sucked
you'll also want to hop out of the car and make sure that all the lights are
working because trust me this is the only chance that you're gonna be able to
get the dealer to fix these types of problems now if it's winter time when
you're looking at the car you're not gonna be able to tell if it's been
smoked in because it's too cold outside but you can at least check the ashtray
for any signs of use if it has one I bought my used car in January and I had
no idea that the car had been smoked in until about four months later when I was
deep cleaning the car and I found a cigarette butt in the middle of it now
that just pissed me off because the salesman told me that the car hadn't
been smoked in which it obviously had been now once you've found a few cars
that you're legitimately interested in buying asked to look at the CARFAX or
buy one yourself most dealers will already have the CARFAX available so
hopefully you don't even have to buy it the CARFAX will give you a really good
representation of the car's history but keep in mind that some stuff can still
squeak through the cracks it'll tell you how many owners the cars had the status
of the title and it'll even tell you how the car was registered to those owners
so if you find out that the car's had like 10 owners then that's a huge red
flag because the car's been around the block way too many times now I found out
later with my used car that it was actually registered as a rental car
which I'm not down with because we all know how we treat rental cars if I'd
looked at the CARFAX like I should have then I would have realized that it was a
rental car and I would have looked into something else I would stick with a car
that had less than two owners that drove it as a personal vehicle and if it's a
lease trade-in then this is a good thing too because it probably implies that the
car has really low miles and it's been well-maintained and if the car has a
branded title you're gonna want to do a little more research on it to find out
what exactly happened at the car so that you know if it's worth the risk and
buying it now once you're confident that you're buying the right used car asked
to take it to your local McCann that you can have a few things looked at
and if you're looking into a certified pre-owned car it's pretty justifiable
that the tests have already been checked but it's always a good idea to get a
third party's opinion because they're not invested in the sale this can cost
up to a hundred bucks but trust me it's worth it especially if you're looking at
a car with a lot of miles the first thing you'll want to have checked is
your computer because you're gonna want to see if it has any trouble codes on it
and then after that you're gonna want to check what's called the drive cycle
monitoring just to make sure that the computer hadn't been reset to hide any
problems now just check under the car for leaks and wear and tear and then
also have them check under the hood for fluids and belts and stuff like that and
once again now is the time to double-check everything just to make
sure you don't have any surprises down the road and if the car's got any normal
repairs that it needs like tires or brakes then definitely have the
dealership pay for it because it's in their best interest to still get the
sale because if the dealership has a shop they can fix all of this stuff for
chief because it's at their cost and normal wear and tear is gonna have to be
fixed regardless so just have them do it now while it's cheaper for you and at
this point if you do find any huge red flags with the car then it was probably
worth paying that hundred bucks to have it checked because nobody wants a
problematic car now once you've found the right used car let's cover price
because that's kind of a big deal and if you've made it this far could you please
give the video a like because that will help me out a lot
thanks used cars are a bit harder to know how much the dealer paid for them
but as an average just figure in about ten percent but if you're looking at a
really old car the numbers are gonna be all over the place so the only way to
know if you're getting a good price for a used car is by checking the websites
that I listed earlier the average price paid is a really good representation of
what others have paid for the same car in that same region but just keep in
mind that demand has a lot to do with the value of the car that you're looking
at so if you live in snowy Utah like I do then you'd understand that two wheel
drive SUVs don't sell very well the four-wheel drive models is what everyone
is looking for up here so unless I go down to Vegas to buy a car I've got to
understand that that demand is stuck in my local area but if you are willing to
go outside your region to buy a used car then you're probably going to find the
best deal but it is a bit of a hassle to have to drive 400 miles just a test
drive a few cars now once you know the average price paid in your
you're gonna want to make sure that you buy the car for less than that average
understand that dealers have bills to pay too but trust me it's a lot better
just to give them a quick 500 bucks rather than three thousand dollars if
they were willing to sell the car regardless so at this point just tell
the dealer that you want to pay five hundred dollars over what the low
average price was paid for that car and be sure to mention any dents dings or
anything that you want fixed at this point because they'll either fix the
problems or they'll just charge you less for the car to have the problem solved
now the key to negotiating is to be confident and polite because nobody
wants to have to deal with an asshole and if you've got a timid personality
then I would highly suggest faking your confidence because you're always gonna
get screwed when you're trying to buy a car now if you do need a little more
help when it comes to negotiating a car deal check out this video right here now
once you've got the best price for the car it's time to cover financing which
can really screw you if you're not paying attention the financing
department has even more ways to make the dealer money so you have to be
paying attention to everything that they're doing now as far as interest
rates go dealers can actually get you really good rates just so long as
they're not taking a cut most dealerships can get you really good
rates from all the big lenders so just go ahead and use them because it's a lot
more convenient now financing an interest and stuff like that can get
really techie so if you need some help just watch these videos right here so
once you've got your financing all settled the salesman is gonna offer you
extended warranties and stupid carpet cleaning and stuff like that but you've
got to understand that all of these services are negotiable so do not pay
full price for any of them and if you are interested in any of these services
just tell the salesman confidently that you want to pay invoice for them and
trust me he'll probably sell it to you at cost because it's most likely still
in his best interest to get the sale even if he doesn't get a commission
they're still monthly and quarterly goals that are still gonna be worth it
to him now as far as fees go just understand that these are sneaky ways
that the dealer can make more money the only fees that are legitimate are
taxes and license and registration that is it now taxes just plain suck but
there's no way of getting out of them but if you have to pay sales tax on
anything then that's how you can tell that it's a fee because you're never
gonna have to pay tax on a tax so if you've got some stupid doc fee that's
like 300 bucks plus tax then that's a fee and you can get out of it
just tell the salesman confidently that you do not want to pay it now if the
salesman tells you that the fee be removed because it has to be
documented then just have them compensate with the price of the car or
your trade-in so that you can get out of it just have them either lower the price
of the car for 300 bucks or add three hundred dollars to your trade-in that
way the fee is at least documented but now you can get out of it in a different
area and trust me at this point the salesman is not gonna love you but
you're too far into the game for them to lose the sale now once you've got
everything signed and documented then you can truly drive away knowing that
you just got the best deal on a used car possible now once again I'm Jason with
the honest finance channel if you are interested in any of this type of
content feel free to subscribe or at least give this video a like that's all

37 Comments

  1. IF you didn't know it had been smoked in the dealer didn't know it had been smoked in. Who cares if you can't tell. Since that was so stupid led to be a main factor in purchasing a car I turned off the video. By.

    Reply
  2. I bought a used 2014 longhorn ram…am happy with it but I definitely over paid and now they anticipate that there will be air suspension issues after the vehicle is paid off. I want to go in to trade it in for a newer one with a similar payment but the buy out on this one is lots. Its very hard for me to find a decent vehicle for the same payment plan. Can anyone offer any tips.

    Reply
  3. Hey man i am from Canada and i am 21 wanted to buy used car what about 2012 honda civic with 113000 kms and for 10k wanna buy it but i am new here so don't know anyone lol just watching these videos to learn

    Reply
  4. I went to a used car dealer to cheack a Lexus RX 330 05 for $7000 I pointed out thah the car needed brakes,front tires and I found 3 codes with my BlueDriver scanne, I offered $6,000 without the repair and they refused and I walked away.

    Reply
  5. You will always get screwed at a used car dealer, because that is what they DO! Find a private seller, someone that just wants a decent price and wants to sell.. you will be much much better off.

    Reply
  6. Don't buy from a dealer unless you are financing. If you got the cash already then used private party, dealer trade in + 15% offer. There are so many variables to look at always go for Toyota, Honda or maybe Ford everything else is marketing bull endless money pits when they age. Also you won't have luxury of considering insurance costs as good value used car go quick. Do NOT pay for a CarFax….it cost 30 bucks more for a mechanic to inspect it which is much better than a risk transferring CarFax information look up semi-nonsense. Stay away from 150K+ miles cars. Get a scan tool for $80 off eBay or amazon.

    Dealer's sell at 2x to 5x….just ask to finance and ask them what down payment they recommend….that price especially if not a round number like $5,000 or $10,000 is what they paid for it. Avoid telling them you are trading in until last moment. Do not pay garbage fees. DO NOT finance at dealership get credit union lined up. Also you will never get a good dealer at dealership as they usually charge you until you leave….which is when they know you reached your limit. Remember the price less to do with supply demand in practical real world and more to do with how much you are will to tolerate. Get the sales guy to invest in the deal over e-mail, invest in the deal by telling you about the car, waste as much as their effort as possible and before you walk out tell them they are losing a deal. Also KBB is bull as it is owned by used car selling autotrader.com. Edmund's is real one….but the price is as low as they MUST let it go for consider a lot of used cars are junk and should not be bought (without warranty) like Mercedes, BMW, Jaguar, any Chrysler product, any Renault product. Buy made in Japan not Kentucky Toyota.

    Reply
  7. Always, ALWAYS..when buying new or used, no matter what deal you got..you WILL get bombarded by friends and family who claim (after the fact) that they know a guy, who has an Uncle that uses the barber on Main St…who heard there is a place, that could have saved you a lot of money.

    Reply
  8. Is $26,000 for a used ex rental 2018 lincoln mkx reserve? The salesman says their cars are as is and the sticker prices are final. It has one owner which seems to be the rental place. I told them I would be back in the morrning and found it strange that they say they dont hold vehicles but if i signed everything before I left they could hold it but I didn't have to drive it off the lot if i changed my mind.

    Reply
  9. I recently bought a ‘07 Lexus GS 350 w/ 138k for $8820. They wanted $9900 but I wanted it “out the door” for $9000. Yes I was hit with a doc fee, etc etc. ended up being $9900 with tax,title, doc, everything. I feel I did ok but not great as the sales person said “$9000 out the door” was fine. Then it’s $9900 including everything but that’s not what I asked. She said “out the door you still have to pay tax title etc,.” I thought “out the door” meant everything said and done. Did I get screwed?

    Reply
  10. As a professional in this industry, I can point out several inaccuracies with your video:

    (1) Most state allow dealers legally to charge for the notary fees. This is a fee we have to pay, and it is usually split with the customer.

    (2) Most front-line, lower-mileage cars are going to be Program Vehicles, or rental, cars. Your prejudice against rental cars is antiquated. These vehicles come with what remains of the manufacturer's warranty, and YES many if not most of a dealer's Certified Used Vehicles are yes…….former rentals. I would NEVER purchase a performance car that had been a rental; however, your general run of the mill sedan or minivan rentals are generally well-treated by professional customers and they are serviced each time they are returned and have the manufacturer's recommended upkeep performed.

    (3) A better place to look for pricing trends are cargurus.com, cars.com and carsforsale.com. On these sites, you can see actual vehicles and how the options compare to the ones you are looking for, what market prices are and how they compare.

    (4) Buying a car out of state may result in a lower purchase price, but depending on the state-to-state agreements regarding taxes, you may end up paying taxes and title fees twice.

    (5) Please do not lie to your salesperson and don't assume they are lying to you. Generally, we are nice and really want to help. I rarely speak to a customer when they don't lie about their credit, down payment, if their car is payed off, etc. We can help much more if you tell the truth.

    (6) As the Bible says: "A workman is worthy his hire." Except what people want salesmen to make. This whole, "I'll only give $500 above lowest market."…makes you sound like an ass. Let's go through dealer fees: dealer licenses, bonding fees, garage policies, salesman licenses, purchase price of vehicles, price to floor that vehicle, transportation of that vehicle, salesman and manager salary and benefits, building mortgage, electricity blah blah, lots of things the buyers never think of. At the average Franchised dealer, a salesman who spends hours with you, when the dealer gives you very little above cost, usually walks away with a $25 minimum commission. The average sale take about 5 hours.. Who here would work for $5 an hour?!?!? Again, given a cooperative customer, the vast majority of dealer's and salesmen want to help you reach a fair price and agreement. There is NOTHING WRONG with a dealer making a FAIR PROFIT from a customer. Kroger does it, Wal-Mart does it, every other store does it, but when a cat dealer wants to make a living wage, we're evil.

    (7) As a general rule, your salesman has ZERO control over what goes on in the finance office, as you are handed over for that part to the Finance and Insurance (F&I Manager). Generally, those extras offered in there are not necessary. I would recommend you say "no" to items offered there. However, to DEMAND that you buy those extras you do want at "COST" or your walking…..All I have to ask is, if I call you up and demand your services at cost or I'm walking, what would you say?????

    (8) You have zero understanding of how Pac works on a used car and how dealers charge the fees on a car they work on. You thought that they charge the repair at cost is WRONG!!!!! Find a good used car manager and have them explain Pac to you.

    Generally, if you treat your local dealer kindly and professionally, they will reciprocate. We want to sell you your dream vehicle at a price you can afford. We are NOT the enemy. We want you happy, enjoying your vehicle and sending referrals.

    Reply
  11. If the car had no remaining smoke odor and your only indication that it had been smoked in was a butt, has the car's value really been affected? My understanding has always been the odor is what diminishes the value.

    Reply
  12. Honestly stressed the hell out because I’ve been reading and doing research and on Wednesday I go to (hopefully) get my first car. I’m so nervous but I’m really excited and I love your videos (and your face). No big business words, very easy to understand and non biased.

    Reply
  13. Based on my own experience, I would advise anyone looking to buy a used car to find a brand that is very reliable. I switched from a Mercedes to a Lexus and have saved thousands of dollars over the past several years. It is the cost of owning the car over time that is most important.

    Reply
  14. I have to say, my 99 Pontiac Grand Am Coupe and I bought it in 2000.. it was a rental and aside from regular maintenance it's still running.. Though in my opinion the engine seems to be lasting longer than the car

    Reply

Leave a Comment

Your email address will not be published. Required fields are marked *