The Ultimate Guide to Scoring a Great Deal on a Used Car

Buying a used car is one of the smartest financial decisions you can make—if you know how to do it right. Whether you're looking for cheap used cars, certified pre-owned cars (CPO), or a great deal on a used SUV, navigating the used car market can feel overwhelming. That’s why we’ve created this ultimate guide—to help you find the best used cars without falling into common traps or scams.

This article covers everything from how to buy a used car to negotiating used car prices, inspecting vehicles like a pro, avoiding costly mistakes, and even understanding your financing options. Whether you’re a first-time buyer or a seasoned shopper, you’ll find practical tips, insider advice, and links to essential tools—like a vehicle service contract—to give you peace of mind after the sale.

Why Buy a Used Car?

Buying a used car isn’t just about saving money—though you certainly will. According to Kelley Blue Book, a new car loses approximately 20% of its value in the first year and up to 60% over five years. That’s depreciation you avoid by choosing pre-owned cars.

Other benefits include:

• Lower monthly payments
• Cheaper insurance
• Slower depreciation
• More car for your money
• Availability of extended protection options

Certified pre-owned cars even offer manufacturer-backed warranties, giving you some of the perks of buying new without the sticker shock.

Step 1: Set Your Budget

Before falling in love with a car, understand what you can afford. That includes:

• Down payment
• Monthly payments
• Taxes and fees
• Insurance
• Repairs and warranty

If you're looking for used cars under $10,000, plenty of models offer reliability and affordability. Use tools like Edmunds or KBB to evaluate used car prices based on mileage, trim, and condition.

Step 2: Decide Where to Shop

You can find used cars for sale from three main sources:

1. Dealerships – Certified pre-owned options, access to financing, and accountability.
2. Private Sellers – Often cheaper, but you’ll need to do more vetting.
3. Online Marketplaces – Carvana, Vroom, AutoTrader, Craigslist, and Facebook Marketplace offer convenience and variety.

Not sure where to start? Check out our Learning Center for tools that help compare options and get a car warranty quote fast.

Step 3: Know What to Look For

When reviewing a vehicle, use a used car inspection checklist. Here's what to check:

• Exterior and paint condition
• Tire wear and alignment
• Engine noises or leaks
• Transmission smoothness
• Brakes and suspension
• Air conditioning and electronics
• Mileage and wear consistency
• Title status and ownership history

You can even take the car to a mechanic for a pre-purchase inspection—an inexpensive way to avoid expensive repairs.

Step 4: Run a History Report

A car history report (via Carfax or AutoCheck) will show:

• Accident records
• Title status
• Number of owners
• Service history
• Odometer accuracy
• Any open recalls

Wondering what does “as-is” mean when buying a used car? It means you accept the vehicle with all its current issues—no returns or repairs covered. That’s why history reports are so critical.

Step 5: Take a Proper Test Drive

Knowing how to test drive a used car properly is key. You’re not just checking if you like the ride—you’re diagnosing the car’s condition.

During your test drive:

• Drive on both local roads and highways
• Listen for unusual sounds
• Test brakes, acceleration, and steering
• Try tight turns and reverse
• Check all buttons, lights, and infotainment systems

If something feels off, walk away.

Step 6: Negotiate Like a Pro

Negotiating used car prices can be intimidating, but a little preparation goes a long way.

Tips for negotiating:

• Research the car’s fair market value using sites like NADA Guides or TrueCar
• Point out cosmetic or mechanical flaws
• Ask for extras like a warranty, free oil changes, or a price drop
• Don’t be afraid to walk away

Always get the used car deal in writing before putting money down.

Step 7: Know the Paperwork

What paperwork do you need to buy a used car? It depends on your state, but generally includes:

• Bill of sale
• Title transfer
• Emissions test (if applicable)
• Vehicle registration
• Proof of insurance
• Lender documents (if financing)

Buying from a dealer vs. private seller will affect how much paperwork you need to do yourself.

Step 8: Secure Financing

Financing a used car is very different from new car loans. Interest rates are often higher, and loan terms can be shorter.

To improve your deal:

• Check your credit score before applying
• Compare rates from banks, credit unions, and online lenders
• Consider a co-signer if your credit is low
• Explore dealer financing but beware of high markups

If you're wondering how to get a loan for a used car with bad credit, lenders like Capital One Auto Navigator or Carvana offer pre-qualification with no impact on your score.

Step 9: Consider an Extended Warranty

Even the best used cars can come with hidden risks. That’s why many buyers choose an extended warranty or vehicle service contract for peace of mind. With Noble Quote, you can get premium protection for your used truck, SUV, or sedan—even if it’s out of factory warranty.

Common coverage options:

• Powertrain
• Bumper-to-bumper
• Electronics and navigation
• Roadside assistance and towing
• Rental car reimbursement

Learn more about coverage types here.

Step 10: Avoid Scams and Pitfalls

Be vigilant about avoiding used car scams. Some red flags include:

• Sellers unwilling to meet in person
• Vehicles priced well below market value
• Title issues or salvage history
• Odometer rollback
• Fake escrow services

If you’re unsure, bring a knowledgeable friend or mechanic with you. A second set of eyes could save you thousands.

Best Time to Buy a Used Car

The best time to buy a used car is often at the end of the month, quarter, or calendar year when dealerships are trying to hit sales quotas. Shopping during holiday sales events (like Presidents Day or Black Friday) can also net you big savings.

Final Thoughts: Score That Deal with Confidence

Getting a great deal on a used car isn’t about luck—it’s about doing your homework, knowing your options, and protecting your investment with a solid plan. Whether you're looking at a used Toyota Camry, a used Honda Civic, or a reliable SUV under $15,000, you can shop smarter and drive away happier.