You did it! You are finally in a position to get yourself a “new to me” car. Congrats, I am proud of you. Having a car is a big responsibility, but it is a serious unlock into adulting.

First – there is nothing wrong with getting a used car. If you are worried about not getting a new one, trust me there is plenty of time for that. Also, people don’t say this often enough, when you buy a new car the value of that car starts decreasing substantially after you drive it off a lot. It will depreciate faster than your car payment decreases what you owe.

The beauty of getting a used car is someone else already put it through its “lemon” phase, hopefully, and you can get a really reliable car for a substantial savings.

Second – ALWAYS, if possible, get a car that has a good history. You can easily check most cars history through CARFAX – it will at least show you how many owners, where it was registered, if there are recalls, if the recalls were fixed on that car. It can also show you accidents, repairs, service history, smog failures, etc. All of this is important information before you plunk down money to get a car.

So here is what to look for in a used car. Don’t compromise – you will most likely regret it:

Check the History

• When you check the CARFAX, check to see if the car was owned and lived in an area close to the coast. Salt air will cause significant rusting to the underside of the car where all the important bits are (like the transmission, the undercarriage, the brakes, etc). If you find a car that you like that lived near the ocean for a while get it checked by a mechanic before you buy.

Salvaged Titles

• Cars that have a salvage title have had significant damage to them – but they could still be good cars depending on what happened. A salvage title means that the car had an accident where the repairs were so costly, it was cheaper for the insurance company to scrap the car instead of paying for repairs. Be very cautious when looking a salvaged cars.

Get a “pre-purchase” inspection!

• If you really want to buy it – ALWAYS insist that the car be seen by a mechanic of your choosing for a “pre-purchase inspection”. These inspections are offered by many mechanics, usually cost between $75 – $150, and will check all of the major components of a used car. Don’t take the sellers word for it, and don’t let them choose the mechanic.

Check the Value

• Check the Kelly Blue Book “private party sale” value of the exact car (options included) that you are looking to buy. You should expect to pay no more than 75% of the max value (the 100% max value is, like, for a used car that was driven by a grandma a couple times a year and is in mint condition).

Test, Test, Test

• Always test drive the car without the seller in the car. Let them see your drivers license and proof of insurance, but really give the car a drive like you would normally drive it. If you stop hard, stop hard in that car. If you accelerate quickly, do that to. If you drive a lot on the freeway, take the car on the freeway.

Do the Sniff Test

• After you test drive the car and have parked, open the hood while the engine is running and sniff around for heavy oil smell. Look for smoke or steam. Check to see if there are weird noises. Any of those could be a bad sign (like a leaking gasket, a worn belt, a leaking radiator, etc).
• Also, sniff for significant fuel smells. Heavy gas smell could be the sign of a several conditions that will be expensive to fix.

Mind the Gaps!

• Check the tire tread. The best way is to take a penny and stick in the tread of each tire, with Abe Lincoln’s head facing up. If you can only see his nose and up, the tread is OK (the deeper the penny goes, the better the tread). If you can see too much of Abe Lincoln – you will need new tires and that will cost you at least another couple hundred bucks.

Now, if you have done all of that, and you still love the car – did you check to see how much insurance would be on that car for you? If not, get a quote before you buy. Do you know the gas mileage for the car? Check that to make sure you won’t break the bank at the pump a few times a week.

Remember – a car is an investment in your mobility, but it needs to be maintained regularly to ensure you continue to benefit from all of the mobility it gives you. After all, what could be worse than buying a car that you can’t use?

Love, Dad

p.s. I am no shill for any company, but that doesn’t mean that I haven’t found services that companies offer to be useful. If I recommend a service (like CARFAX or Kelly Blue Book above) it’s because I like it for the specific thing I am suggesting. There are other ways to get things accomplished, you don’t have to use them – but time is money and I like to cheat as often as I can to get time back. It also doesn’t mean that I am recommending any of their other services, just the one I talk about here.