They say a car loses 10% of its value when you drive it off the lot. While that’s bad news for sellers, it’s fantastic news for anyone in the market for a used automobile.

If you fit that description, this list will help you avoid common pitfalls and get the best possible deal when buying a used car.

1. Set Your Budget

How much you can spend on your car depends on your finances, but a good rule of thumb is never paying more than 20% of your paycheck on car payments. For a used car, you should probably stick to a bit less than that.

The reason for this is that used cars may have more problems that need fixing compared with brand-new cars. This means you may have to set aside some extra cash to cover those repairs when they happen. You may also have to update things like tires, wiper blades, and other issues.

Also, factor in how much coverage you can afford when you shop for Arizona insurance services. Oasis is among the best car insurance companies in Arizona and is a go-to choice for insuring used cars. Your insurance policy will vary depending on the condition of the vehicle you buy.

2. Come Up With a List of Ideal Vehicles

You want to choose the vehicle that’s right for your needs, but remember that reliability is everything when you’re buying used. That seven-seat SUV won’t do you any good if it’s always in the shop!

Cars like the Honda Accord and the Toyota Camry have proven track records with high reliability. If those are just outside your price range, you can consider comparable alternatives from companies like Ford and Kia — just make sure to do your research and avoid any brands or models with bad reputations.

If you’re looking at newer used cars, shop around for certified pre-owned vehicles. These include long-term warranties by the manufacturer, which gives you better peace of mind in your purchase.

3. Begin Narrowing Down Selections by Price

The place you buy your car from will be the biggest determining factor in what you pay. You may wind up choosing an official car dealership (these often carry used vehicles), independent business owners, or large-name retailers like CarMax. Another option is buying from independent sellers online.

You are bound to get the best price working with private sellers since these sellers have fewer overheads. However, note that you’ll need to rely on your instincts when buying from an individual seller and should be very thorough. Certified pre-owned vehicles will be the most expensive but will carry the least risk.

4. Start Looking at What’s Close

There’s a good chance the car you’re looking for is available fairly close by. You can use resources like Edmunds to filter down to the cars you’re interested in and sort them by range. You can also filter them by odometer readings, price, and more. This will save you lots of time during your search.

5. Get the Car’s Vehicle Identification Number and Research It

The best situation is one in which you know the car’s maintenance history. If you are buying from a friend or family member, it’s possible to get a vehicle history report to see if it’s got any red flags.

Red flags could include the odometer being tampered with or whether it has a salvage title, which means an insurance company at some point declared it a total loss. You may also find information on how often it was serviced and if there were any accidents on its record. If you find any red flags, turn and don’t look back — find a better option.

6. Speak With the Seller Before Going to See the Car

You’ll be surprised how much you can tell just by speaking with the seller on the phone. For starters, you can get any information you want about why the owner is selling the car, whether it’s got any issues, and how often they changed the oil.

If the seller is gruff, impatient, or defensive about the car, that’s a red flag. If the vehicle is what they say it is, there’s no reason the conversation should turn adversarial. Likewise, they may provide you with some information that changes your mind in a positive or negative way.

Don’t negotiate over the phone. Simply ask for the price of the car and wait until you see it to negotiate. This gives you better leverage since you’re looking at the car in its actual condition.

7. Go Observe and Test Drive the Car

Make sure to always check out cars in the daylight, as you should look closely at the condition of the paint, undercarriage, and interior. Take it for a thorough test drive, looking for the following information:

• Is it comfortable to drive, enter, and exit?
• How does the steering feel? The brakes? The turning?
• Do you notice any strange noises like knocking, squealing, or puttering? These could indicate a problem.
• Make sure the check engine light isn’t on.
• Do all the lights work on the outside of the car?
• Ensure the car has good visibility and feels safe.
• Do you smell any burning fluids like oil, transmission fluid, coolant, or anything else?
• How much tread is left on the tires?
• Is the air conditioner ice cold?
• Look under the hood to see if anything looks amiss.
• Ask for service records.

8. Take It for an Inspection

If you have a mechanic you trust, have them inspect the car before you buy it. This will cost a couple hundred dollars but could save you thousands.

9. Begin Negotiations

Start by deciding on the maximum amount you’re willing to spend on the car. Offer a lower price than this, based on the ballpark value you came up with in step 3. Let the seller know you’ve performed your research. Settle on an agreeable price and make sure all legal paperwork transfers.

10. Get Great Insurance

Whether you live in Mesa, Tucson, or elsewhere in Arizona, protect your investment by choosing Oasis Auto Insurance. Oasis insurance offers industry-leading protection for used vehicles, giving you the peace of mind you deserve with your new purchase.