How do I buy a used car from a dealership?
Prepare before you visit
Research what similar cars sell for in your area so you have a reference point. Get pre-approved for financing if you plan to borrow, which gives you bargaining power and a clear budget.
Ask for the vehicle history report and any reconditioning records. Compare them with the car on the lot.
- Set your total budget first
- Look up local market values
- Get financing pre-approval if needed
- Ask for the history report
Negotiating and signing
Ask for the out-the-door price, which includes taxes, documentation fees, and any add-ons. Dealers often make money on financing and extras, so focus on the total price rather than the monthly payment alone.
Read the contract carefully. Decline add-ons you do not want, and confirm in writing any promises the salesperson makes, such as repairs or warranty coverage.
If the dealer offers a trade-in, get a separate quote for your old car from another buyer first. Negotiating the purchase price and the trade-in value as two separate deals usually gives you a clearer picture of the real numbers.
Common mistakes
- Negotiating only the monthly payment and not the total price.
- Signing before reading add-ons such as extended warranties or protection packages.
- Forgetting to confirm verbal promises in writing.
