If you want to buy used cars, you are not alone. In private and dealer sales, nearly 40 million used cars change hands every year. With so many options, finding a car that suits you can be a challenge. Read a series of steps below to help you easily find and buy the perfect used cars.

What car can you afford?

If you buy a car with a loan, the amount of your car loan should not exceed 10% of your take-home salary. If your budget is tight, you may want to spend less money. Used cars sometimes need some extra attention, including new tires, maintenance, etc. In addition, some consumers sometimes forget to consider another cost of ownership, such as fuel and insurance. If the car you plan to buy has passed the warranty period, you'd better set aside a “just in case” fund to cover any unexpected maintenance costs.

Establish a used car target list

As we all know, Honda CR-V and Toyota RAV4 are good used cars. But they may cost thousands of dollars more than similar Ford Escape or Kia Sportage, even though they are solid cars. So if you want to save money, consider multiple brands. We recommend making a list of three cars that can meet your needs and be within your budget. Edmunds' comments have good information to guide your choice.

If you plan to buy a car that has been in use for less than 5 years, consider buying a certified used car (CPO). CPO cars have a long-term warranty, guaranteed by the car manufacturer, not just sold to your dealer. The franchised dealer who sells new cars of the same brand is the only dealer who can sell CPO cars of the same brand. For example, if you want a CPO Chevrolet equinox, you need to buy it from a Chevrolet dealer.

Check price

The price is determined to some extent by the shopping location. You can find used cars in the used car section of new car dealers, independent used car parking lots, used-car retailers such as Carmax, and private sellers' websites listing their cars. Of the four cars, private cars usually sell for the lowest price. CPO cars are usually the most expensive, but for the reasons, we have mentioned. If you want to know how much others have paid for your selected model, check the Edmunds recommended price on the inventory page of each vehicle.

Find used cars for sale in your area

A simple place to build a target list is the Edmunds used garage inventory page. To accurately find the car you want, you can filter your search according to many factors, including the mileage on the car odometer, its price and function, and the distance between the dealer and you. Most other websites have similar methods to find the nearest vehicle to you.

View vehicle history report

Unless you buy a car from a close friend or family member who can guarantee the history of your car, you should prepare a car history report. This early step is crucial. If the car you are looking at has a bad history report, the sooner you know, the better.

Autocheck and Carfax are the most famous sources of vehicle history reports. These reports can reveal important information about the car, including whether the odometer has been rolled back or whether it has salvage rights, which means that it has been declared a total loss by the insurance company. You can use the vehicle identification number (VIN) of the car to obtain this information. In some cases, you only need the license plate number. Most major dealers will provide these reports free of charge if they have cars in stock.

Contact seller

Once you find a good car, don't run out to see it. Call the seller first. This step is a great way to build a relationship with the seller and verify the car information. You can ask private sellers why they sell cars, or if they have any mechanical problems. If you buy from a dealer, calling or texting is the best way to ensure that the car is still in stock.

Sometimes, the seller will mention something that is not in the advertisement, which may change your decision to buy a car. If you want to know more, our used car questionnaire can remind you what to ask. You will notice that the last question on our list is the asking price of the car. Although many people want to negotiate before they see the car, it's best to wait. Once you see it, you can relate your proposal to its conditions.

If everything goes well, schedule a test drive. If possible, set it during the day to make it easier to see the condition of the car.

Test drive a car

Testing a used car is the best way to find out if it suits you. This is also a good way to evaluate the condition of a car. So don't be distracted and concentrate on driving. Here are some things to check:

Is it easy to get on and off without bending down or hitting your head?

Is there enough headspace, hip space, and leg space? Remember to check the space in the back seat, too.

Is the driving posture comfortable? Are you sitting too low, too high, or just in the car? Can you tilt or telescope the steering wheel better?

Is the seat comfortable? Are they easy to adjust? Does the driver have lumbar support adjustment? What about the passengers in the front row?

Is the check engine light on? If so, check the problem before buying.

How is the visibility? Check the rear-view mirror and the rear-view mirror. Look for potential blind spots.

Use your nose. Do you smell gas, oil, or anything uncomfortable?

Check the tires. How old are they? Are there enough footprints left?

How's the brake? Are they doing parking? Are they reluctant?

popular. You don't need to know a lot about cars to see if something is wrong. If something leaks, steam, or is covered with oil, it's time to ask questions.

Is the air conditioner cold? Do the headlights, brake lights and turn signals work? Test them to make sure.

After the test drive, ask the owner or dealer if they can see the service record. These will show whether your vehicle has been scheduled for maintenance.

Check the car

If you like this car, you can consider having it checked by a mechanic before you buy it. If you don't have a repairman, Google and Yelp are good places to read local store reviews. The cost of a pre-order inspection is $100 – $200, which can remind you of problems you may not find. This is a wise investment.

Private sellers may allow you to do so without much resistance. Most dealers will let you borrow a car for an outside mechanic to check. Of course, you have to pay the inspection fee. If it's a CPO car, it has been checked, and the car has a warranty period, so there's no reason to hand it over to an independent mechanic.

Negotiate a good price

Does the idea of “talking about numbers” scare you? This should not be. Negotiation is not necessarily a long and traumatic experience. If you are reasonable and have a plan, you are likely to reach an easy deal soon.

Decide in advance how much you are willing to spend on a car. But don't start your discussion with this number.

The opening price should be lower than your maximum price, but it should be based on the average price survey you did in step 3. Explain that you have done research on Edmunds or elsewhere, so you have facts to support your proposal.

If you and the seller reach a price that is good for you and close to the average price, you may be in good shape. Remember, people on the other side may not like negotiation, even if it's their job.

Complete paperwork

If you are in a dealer, you will sign the contract at the finance and insurance office. There, you may get additional services, such as warranty, anti-theft equipment, prepaid service plan, or fabric protection.

Some people hope that extending the warranty period can be reassuring, so this is something you may want to consider unless the car is still under the manufacturer's warranty or CPO vehicle. Thoroughly review the distributor's sales contract. In most states, it lists the cost of vehicles, documentation fees, and possibly a small part of the cost of smoke certification, sales tax, and license fees.

If you buy a car from an individual owner, make sure the seller correctly transfers ownership and registration to you. To avoid after-sales trouble, it is very important to make a correct transaction. Before the money changes hands, ask for ownership (sometimes called a termination notice) and ask the seller to sign it for you. Regulations governing vehicle registration and licensing vary from state to state. If possible, check with the local motor vehicle administration to ensure that there is no overdue registration fee if you buy a car. Whether you buy it from a dealer or a private party, make sure your car is insured before you drive away.