How Do I Know If I'm Paying Too Much for a Used Car?
- 1). Determine the value of the used car based on industry pricing guides. Three of the most popular places for comparing used car prices are Edmunds.com, Kelly Blue Book and the National Automobile Dealers Association. Make sure to enter the correct make, model and year to get an accurate price.
- 2). Purchase a Vehicle History Report on the car. These reports look up the Vehicle Identification Number for the car and can be purchased at a variety of Internet sites. This report will reveal if the car has been in any accidents or suffered other damage, such as flooding. Accidents greatly devalue a vehicle even if it is repaired. If a car seems overpriced, but the VIN report reveals prior damage, you have leverage to negotiate the price down.
- 3). Research prices at other local used car dealers for the exact same car. Again, make sure that the make, model mileage and year of the car are identical, and that no aftermarket parts have been added that may increase the price. Compare these prices with the used car you are thinking of buying. Although the prices will not be identical, there should be no more than a $500 to $1,000 difference.
