4 Steps to Create Your Best Used Car Buying Experience

Written by VADA (Vemont Vehicle and Automotive Distributor's Association)

Step 1: Do Your Homework

  • How many miles will you drive annually? What size vehicle do you need - car, truck, minivan, SUV? Need extra cargo space, all or four wheel drive?
  • Research and compare the information on different vehicles - year, make, model, mileage, vehicle history and consumer reviews.
  • If trading a vehicle, check its value through NADA Used Car Guide or Kelley Blue Book.

Step 2: Know Your Budget

  • Consider ALL your costs: gas, regular maintenance, unexpected repairs, insurance. If you buy the vehicle "as is," you will pay the cost of all repairs.
  • If taking out a loan, how much cash can you put down to reduce your monthly payments? How much can you afford to pay each month? These answers will help determine a realistic price range for your used car.
  • Know your credit score. Is your score higher or lower than average?
  • Research your financing options by comparing terms, rates and advance policies of banks, credit unions and dealerships.

Step 3: Shop Like a Pro

  • Search for and compare vehicles on websites, at different dealerships, and in ads through your local newspapers.
  • Test drive and/or have your technician evaluate the vehicle. We recommend both.
  • Consider getting a vehicle history report.
  • Compare the sticker price to Edmunds.com, NADA Used Car Guide or the Kelley Blue Book.
  • A valid inspection sticker indicates the vehicle passed inspection on the day it was inspected. You should not assume it was inspected by the seller or that the seller is required to repair any defects that exist or occur during the inspection period.
  • Check the buyer's guide on the window to find out if a warranty is being sold with the vehicle, and if so, what kind.
  • Don't buy on impulse! Be willing to walk away. Be prepared ahead of time and don't let your emotions override common sense!

Step 4: Take Time Before You Sign

  • Review EVERYTHING in writing carefully - the purchase price, trade value, financing method and monthly payment amount.
  • Make sure you understand all the terms of the warranty if one is provided, or if you have to purchase one separately.
  • If you're unsure of something, ASK.
  • Get everything promised in writing.
  • Once you sign a contract, you have committed to purchase the vehicle. There is no time period during which you can return the vehicle after you sign for it.


Buyer's Guide Basics: Warranty Terms
Check the window sticker!

Dealers are required to display a "Buyer's Guide" sticker on the side of the window of each used car for sale which discloses whether a warranty is offered and the basic terms of any warranty.
Be sure you understand what, if any, warranty is provided. Warranty terms include:

As Is
No warranty. You will be responsible for all repairs. As is means the vehicle is being sold in its present condition, as is with all faults. There is no warranty, implied or expressed. Once you sign the line and drive away, the vehicle is yours. If you purchase an "as is" vehicle, it MAY NOT pass inspection. You, the buyer will pay for all costs and repairs. You could be getting it at a lower price, a great deal for what it is, because you may need to put more money into the car to make it last. Before deciding to buy a car and settling on a purchase price, think about the price of the vehicle and consider that there may be imminent repairs.

Unexpired Manufacturer's Warranty
Any warranty provided is by the vehicle manufacturer. You can consult the manufacturer's warranty booklet for terms and conditions.

Dealer Warranty
Could be full or limited warranty for a specific time period or mileage.

Certified Pre-Owned
Could be either a manufacturer or dealer certification; terms vary. You should consult the warranty for terms and conditions.

Service Contract/Extended Warranty
Usually purchased separately, covers repair costs specific in the contract.



Additional Resources

Consumer Guide to Warranties
ConsumerAutomotiveResearch.com

Consumer Reports
ConsumerReports.org

Fuel Economy
fueleconomy.gov

Vehicle History
vehiclehistory.gov

Vehicle Pricing
KBB.com; Edmunds.com

Recalls & Safety
NHTSA.gov


Written and distributed by the Vermont Vehicle and Automotive Distributors Association (VADA). VADA - Helping drive Vermont's Economy. VADA represents the interests of new and used motor vehicle dealers, service shops, and parts and tire retailers and works to improve and promote the ethics and general welfare of Vermont's automotive industry.