Used car lots can be intimidating.

Loads of vehicles are spread about, of all brands and styles, and it’s hard to know where to begin.

What should you look for? What should you avoid?

You want to find a reliable car at a great price, saving you literally thousands of dollars over a brand new vehicle.

You want one that runs well and looks stylish, but isn’t going to break the bank.

To help you find and buy a decent used car, we’ve compiled expert advice to share with you.

Here are 19 of the top tips for buying a used car. Before you know it, you’ll be rolling out of the sales lot in fresh wheels at an incredible price.

1. Look for a car with low kilometres

The number of kilometres on a used car should be a huge factor in your buying decision.

Aim to find a vehicle with approximately 14,000 kilometres traveled per year. This is close to the average in Australia.

So, for example, if you’re looking at a car that’s 5 years old, it should have approximately 70,000 kilometres on its odometer. Of course, if the number differs somewhat, it is still a car worth considering.

In addition to checking the odometer reading and comparing it to the years on the car, ensure the odometer reading is accurate. While you can’t test its accuracy with complete certainty, you can view the vehicle history report.

Purchase a report from a respected company like AutoCheck or RevsCheck. Review the report to see if the odometer has been tampered with.

Watch for any inconsistencies in the progression of kilometres to ensure it makes sense chronologically. For instance, the report shouldn’t show a vehicle had 50,000 kilometres after one year, then only 45,000 at the end of the following year.

2. Consider the vehicle’s age

In addition to the kilometres travelled, look at the year the car was made. This will give you an indication of how old the car is and how many kilometres were driven each year.

For instance, a ten or twelve year old car with only 35,000 kilometres may seem like an appealing purchase. But since the driver hasn’t spent much time behind the wheel, they likely haven’t spend much time doing maintenance on the vehicle either.

When a car sits too much and isn’t driven, it develops problems. The parts and pieces haven’t moved regularly. For this reason, a five year old vehicle that’s spent too much time sitting is more of a concern than an eleven year old car that’s been used consistently and is well-maintained.

3. Check the car’s history report

Retrieve and review a car report for any used vehicle you’re looking to purchase.

Look at the history report from a company like AutoCheck or RevsCheck.

You’ll need a 17-digit Vehicle Identification Number (VIN) to run the report.

Once you have the report in-hand, you can see the vehicle’s complete history, if it’s been in an accident, and what happened.

In the car report, be sure to look for:

  • Serious accidents, fires, or floods
  • If the car has been ‘totalled’ or considered a ‘total loss’ by an insurance company
  • If an insurance company issued a ‘salvage title’ (avoid cars with a salvage title: they hurt the resale value and often indicate that the car has hidden problems)
  • An odometer report that makes sense from a chronological perspective
  • Any maintenance details.

Ideally, you’ll want to purchase a car that hasn’t been in an accident and doesn’t have any other red flags.

Car reports are usually purchased for a minimum fee and are well worth the cost.

4. Check the RedBook price

Ensure you’re getting a used car for its market competitive price.

RedBook allows you to input basic information about the car’s make, model, and year. It will generate prices of similar cars, along with details about each vehicle.

You’ll want to compare the prices of the cars you found on RedBook to the used car you’re looking to buy. This will be a good indicator of price, ensuring you’re not overpaying.

Have this price information in your back pocket, so you have more facts and figures when negotiating.

5. Consider time-tested value vs. a fad

When it comes to the make and model of your car, are you more concerned with how it looks or how it performs?

While trendy cars make for a great statement, they may not pay off over time.

Look for a car that will maintain value and style over the next five to ten years. You can find a good-looking car while still choosing one that will stick by your side for years to come.

6. Buy on the last day of the month

Car salesmen are often trying to hit their numbers for the end of the month.

They need to sell a certain amount of vehicles per month, and as that time period comes to a close, salesmen are willing to make deals at lower prices in order to sell more cars.

If possible, make your purchase on the final day of the month. It often gives you extra leverage in negotiating the price.

So stop in to a dealership toward the end of the month and don’t be afraid to bargain.

7. Watch for used cars owned by senior citizens

Older generations tend to take care of their belongings with great responsibility.

Many senior citizens take exceptional care of their vehicles and perform regular maintenance on them. They’re also usually gentle on their cars and drive them with caution.

If you come across a car that was owned by someone who took care of the vehicle or was more gentle in their use, consider it a lucky find.

A well-maintained vehicle will likely have less maintenance costs and problems in the future.

8. Don’t be afraid to negotiate

If you bargain well, you can usually get a great price on a vehicle.

How does successful bargaining work?

Truly, bargaining starts with information. The more you know, the better off you’ll be.

Do as much research about the type of car you want before you head into the dealership. This will equip you with knowledge about the market competitive prices for your desired make and model.

If you’re trading in a vehicle, research the average selling price of that car, too. Ensure your trade-in rate is as close to the wholesale price as possible.

When it comes to pricing used cars, most dealerships build a 20{2f5ac156b00eba21775ae628bbcd1455392fa5a5d6d32389211b9514333d32d6} margin into the asking price, meaning they ask for 20{2f5ac156b00eba21775ae628bbcd1455392fa5a5d6d32389211b9514333d32d6} more than the price they paid for it. Offer 15{2f5ac156b00eba21775ae628bbcd1455392fa5a5d6d32389211b9514333d32d6} below the asking price and tell the salesman you know there’s an approximate 20{2f5ac156b00eba21775ae628bbcd1455392fa5a5d6d32389211b9514333d32d6} gross margin in the price. Let them know that you want them to profit, but you’re not going to let them clean your bank account.

And always be ready to walk away if the price isn’t right. If you’re flexible in your choice and you don’t get too attached to one vehicle, you’ll be more likely to strike an incredible deal at the right time.

9. Bring along someone you trust who has a knowledge of cars

If you’re not confident in your car knowledge or negotiating abilities, bring along a family member or friend who can help you out.

Having a second set of eyes and a second opinion may make a large difference in your purchasing decision.

10. Check for rust

Review the car thoroughly to see if there’s any rust. Normal rust spots are found near the bottom of the doors and body of the vehicle.

If you see rust, it’s a sign that more will come in the future.

11. Review the car’s interior

In addition to the car history report and reviewing the outside of the car closely, look at its interior workings.

Check to see if there’s damage of:

  • Seats
  • Car mats
  • Radio
  • Air conditioning
  • Heating
  • Glove box
  • And all other details

12. Make sure the car is odour-free

If the owners have smoked or have owned a dog, it will be difficult or impossible to get rid of the smell.

Check the car closely to determine if the vehicle’s previous owners were smokers or dog owners.

13. Consider buying last year’s model just before the new model comes out

If you’re in the market for a newer used car, take a look at last year’s model.

If you time your purchase for right before the new year’s model comes out, you’ll likely get a better deal on the prior year’s model.

Older models are priced lower and the dealerships will be in a hurry to get them off the lot before the new ones come.

14. Have your loan and finance information ready to go

Before you head in to make a deal on a car, have your loan and financial information prepared, so the seller knows you’re serious.

15. Think ahead if you might use the vehicle for a second job

Ever thought of being an Uber driver?

Make sure you’re buying an up-to-date vehicle that meets requirements.

You’ll also want to keep your vehicle spotless and in great condition to maintain happy passengers.

16. Have a mechanic look it over

Experts suggest always having a mechanic look over a used car before purchase.

Check local listings, online recommendations, or ask someone you know about a high-quality mechanic in your area.

Mechanics generally charge between $50 and $150 to thoroughly check a vehicle and explain any potential problems.

The price is worth the cost, as most used cars don’t come with warranties. A mechanic’s professional opinion may help you avoid future maintenance costs and problems.

Most mechanics will have a checklist of what to look for, but ensure they review things like:

  • Safety features, including headlights, brakes, wipers, and horn
  • Brake cylinder and drum to see if the pads are worn out
  • Transmission and engine health
  • Rust on the radiators, exhaust, bottom, and muffler
  • Oil leaks
  • Power and pick-up for accelerating
  • Suspension and emission

Mechanics might also be able to tell you what they believe the car is worth.

17. Take it for a test drive

The way the car drives and feels—to you—is just as important as all of the checks and reports.

Take your potential new ride for a spin. Drive it on city roads, country roads, and motorways to get a good feel of how the car handles.

Does it drive smoothly? Are there any unusual sounds?

Can you get in and out of the car easily?

Getting a feel of your day-to-day in the vehicle will help you make a sound decision.

If the seller doesn’t let you test drive the car, you have no reason to buy the vehicle.

18. Consider used cars that are for sale by owner

Dealerships aren’t the only place you can buy a decent used car.

Look for listings on websites like Craigslist for cars that are for sale by the owner. You may find a car that’s priced lower than what’s at the dealership.

You can also watch for cars that are parked near the edge of the road or in a parking lot. Sometimes these are the best deals because they don’t have to account for the overhead costs of a dealership.

When you buy a vehicle person-to-person, you can still get a car loan. This makes it a feasible option for people from all different financial situations.

19. Make sure the seller has the title

If the seller doesn’t have the title or says they’ll get the title to you later, don’t purchase the vehicle. Every owner must have a title.

In the case that a seller has an outstanding loan, you can go to the lender and pay the remaining balance. The title will then be given to you.

As you get closer to making a used car decision, consider a secured loan that can cover the cost of a used car.

You can also apply for a personal loan that can help pay for any current car repair needs.