Start with what you can actually afford

Before you look at a single listing, know your budget and where the money comes from. If you are paying cash, that number is fixed. If you are financing, get pre-approved for a loan first — this tells you the maximum you can borrow and locks in an interest rate for a set number of days, usually 30 to 60. A pre-approval from your bank or credit union is stronger than dealer financing because you can walk away if the dealer's offer is worse.

Your budget should include the purchase price plus registration, title transfer, and inspection costs. Many buyers forget that a used car will need maintenance sooner than a new one. Set aside money for that before you start shopping, not after you have already spent your limit on the car itself.

Once you know what you can spend, decide whether you want to finance through a bank, a credit union, or the dealer. Bank and credit union loans usually have lower interest rates, but dealer financing is faster and sometimes available to buyers with weaker credit. Get numbers from at least two lenders so you can compare.

Key Takeaways

  • Get pre-approved for financing before you shop, so you know your real budget and can negotiate from a position of strength.
  • Search multiple sites at the same time — Craigslist, Facebook Marketplace, Autotrader, and local dealer websites often list different inventory.
  • Always have a mechanic inspect any used car before you buy it, and budget $100 to $200 for that inspection.
  • Check the vehicle history report using the VIN to see accident history, title status, and service records.
  • Private sellers usually offer lower prices than dealers, but dealers often provide limited warranties and handle paperwork more smoothly.

Search the right places for your vehicle type and price range

Used cars live in different places depending on price and condition. Craigslist and Facebook Marketplace have the most private sellers and the lowest prices, but you handle all paperwork yourself and have no recourse if something goes wrong after purchase. Autotrader, Cars.com, and Edmunds aggregate listings from dealers and some private sellers, making it easier to filter by year, mileage, and features. Local dealer websites sometimes list cars not yet posted to the big sites.

Start by searching the same car across all these places. A 2018 Honda Civic, for example, might be $14,000 on Craigslist, $15,500 at a dealer, and $14,800 on Autotrader. Seeing the range tells you what that model actually costs in your area right now. Set up saved searches on at least two sites so new listings hit your email as they post — good cars at fair prices move fast, sometimes within hours.

Filter by mileage, year, and price, but do not get too narrow. A car with 85,000 miles might be a better value than one with 65,000 if it was highway miles and well-maintained. Read the full listing before clicking. A dealer listing that says "needs work" or "as-is" means you are buying it with known problems and no warranty.

Evaluate the vehicle history and condition before you contact the seller

Every used car has a Vehicle Identification Number (VIN), a 17-character code usually stamped on the driver's side dashboard and listed in the ad. Before you call or message the seller, run that VIN through a history report service. Carfax and AutoCheck are the two major ones; both cost $20 to $30 for a single report. The report shows accident history, title status (clean, salvage, rebuilt), number of previous owners, and service records if the previous owner reported them.

A clean title with no accidents and regular maintenance records is the baseline. A salvage or rebuilt title means the car was declared a total loss by an insurance company at some point — it may run fine, but it will be harder to sell later and insurance will cost more. An accident does not automatically mean avoid the car, but it should lower your offer. Multiple accidents or structural damage is a red flag.

Look at the photos in the listing carefully. Check for rust, dents, mismatched paint, and interior wear. If photos are blurry, few, or missing key angles (undercarriage, engine bay, interior), ask the seller for more before you visit. A seller who will not provide clear photos is often hiding something.

Contact sellers and schedule in-person inspections

Once you have narrowed your search to three to five cars, contact the sellers. For private sellers on Craigslist or Facebook, text or call and ask basic questions: How long have you owned it? Any accidents or major repairs? Why are you selling? Any mechanical issues I should know about? Listen for hesitation or vague answers. A straightforward seller will give you straight answers.

Schedule a time to see the car in person. Meet during daylight, bring someone with you, and meet in a public place if you are buying from a private seller. Bring a flashlight, a tire pressure gauge, and a basic OBD2 scanner (a $25 tool that plugs into the car's diagnostic port and reads error codes). Check tire tread with a penny — insert it upside down into the tread; if you can see the top of Lincoln's head, the tires are too worn.

Test drive the car on both highway and local roads. Listen for unusual noises, check that all windows and locks work, and feel how the brakes respond. A test drive reveals problems that photos cannot. If the seller will not let you test drive it, walk away.

Get a pre-purchase inspection from a mechanic you choose

Before you commit to buying, take the car to a mechanic — not the seller's mechanic, and not the dealer's service department. Find an independent shop that does pre-purchase inspections. This inspection costs $100 to $200 and takes about an hour. The mechanic will check the engine, transmission, brakes, suspension, and electrical systems, then give you a written report of what is working and what needs repair soon.

A good inspection report tells you the true cost of ownership. A car might be $13,000 but need $3,000 in brake work and suspension repairs within the next year. That changes your offer. Use the inspection report to negotiate the price down or walk away if repairs are too expensive. Never skip this step, even if the seller says the car is in perfect condition.

If the seller refuses to let you inspect the car before purchase, that is a strong signal to look elsewhere. A confident seller with nothing to hide will let you verify what they are claiming.

Negotiate the price and understand what you are buying

Use the inspection report, the vehicle history, and your market research to make an offer. If the asking price is $14,000 and the inspection found $1,500 in needed repairs, offer $12,500. The seller will likely counter. Negotiate until you reach a number you both accept or walk away. There is always another car.

Before you hand over money, understand what you are buying. From a private seller, you get the car as-is with no warranty — once the money changes hands, any problems are yours. From a dealer, you may get a limited warranty (often 30 to 90 days on the powertrain). Read the warranty terms carefully; many exclude wear items like brakes and batteries.

Get the title in your hands before you pay. For private sales, the seller should have the original title. If they do not, or if the title is in someone else's name, do not buy the car. A missing or unclear title creates legal problems when you try to register it. If buying from a dealer, they will handle the title transfer, but confirm the process and timeline before you sign.

Complete the paperwork and register the vehicle

Once you have agreed on a price, you need a bill of sale (a straightforward document stating the car's details, price, and both signatures). For private sales, you can use a template from your state's DMV website or a free form from Autotrader. For dealer sales, the dealer provides the paperwork.

The seller signs the title over to you, and you take it to your state's DMV or equivalent office to register the car in your name. Bring the title, bill of sale, proof of insurance, and a photo ID. Registration fees vary by state and vehicle value, but typically run $50 to $300. Some states allow online registration; others require an in-person visit.

Get insurance before you drive the car off the lot. Most states require proof of insurance before you can register a vehicle. Call your insurance company or get a quote online; a basic policy for a used car usually costs $50 to $150 per month depending on your age, driving record, and the car's value.

Frequently Asked Questions

Should I buy from a private seller or a dealer?

Private sellers usually offer lower prices because they have no overhead. Dealers charge more but handle paperwork, may offer a short warranty, and are easier to pursue if something goes wrong when ready after purchase. For your first used car, a dealer may be worth the extra cost for the peace of mind and simpler process.

What mileage is too high for a used car?

Modern cars regularly run 200,000 miles or more if maintained. Mileage matters less than maintenance history. A well-maintained car with 120,000 miles is often a better buy than a neglected one with 60,000. Check the service records and have a mechanic inspect it regardless of the odometer reading.

Can I return a used car if something breaks right after I buy it?

Not usually. Most private sales are final, and dealer warranties are limited — typically 30 to 90 days on the engine and transmission only. This is why the pre-purchase inspection is critical. It catches problems before you own the car, when you can still negotiate or walk away.

What if the seller will not provide a vehicle history report?

You can run the VIN yourself using Carfax or AutoCheck. The seller does not need to provide it. If a seller refuses to give you the VIN or becomes evasive about the car's history, that is a warning sign to look at a different vehicle.

Do I need to negotiate, or should I just pay the asking price?

Always negotiate. The asking price is a starting point, not a final offer. Use the inspection report, market research, and any needed repairs as leverage. Even a $500 to $1,000 reduction is worth the conversation. If the seller will not budge, you can decide whether the car is worth the asking price or move on.