When buying cars, buying a used one is an excellent way to save money and avoid much of the asset depreciation associated with brand new cars. It isn’t uncommon to save over $10,000 on the average used car loan compared to a car loan for a brand-new car. It also means you make lower monthly car payments, which can often feel like a steal. This is probably why buying used is rapidly becoming more popular, but how do you buy a reliable used car? Let’s discuss how you can do it in a few simple steps.

Save Money on Any Existing Car Loans 

 Like many, you probably have a car and make regular car payments. You can trade down to save money on that loan. On the other hand, if your current car sells for less than what you owe in car loans, you may find yourself paying the balance out-of-pocket. Ask your lender for a “payoff estimate,” check the market value of your existing car, and crunch the numbers before you make a move to save money on existing car loans.

Request Records and Review History

A used car’s records and history can say a lot about its reliability. No matter who you buy your used car from, you should always review the car’s maintenance history. Cars that aren’t taken care of or maintained regularly may have costly issues later. Not every seller will have complete records, but you must carefully examine any repair and maintenance records you get.

Get a First-Hand Test Drive 

Modern technology has made it possible to buy a car from your couch and deliver it to your driveway. However, you should never buy a car without a first-hand test drive, even if it’s brand new. You’ll never know what the drive feels like, how comfortable it is, or what kind of performance you can experience. Test drives are even more important to gauge reliability and performance with used cars. Make sure to test it on highways, streets, and the road conditions you regularly drive in. Test the brakes, acceleration, electronics, etc., and feel out any issues the car may have.

Do Some Reconnaissance 

Good maintenance records and a test drive are not enough. You need a background check, so check the VIN and CARFAX report for things such as service records, ownership history, recalls, etc. Also, make sure to check the title and keep an eye out for words like “flood,” “rebuilt,” or “salvage.”

Pay for an Inspection 

Anyone can check records or history, but it often takes a professional to check for any hidden or underlying mechanical issues. Even if you buy “certified pre-owned” from a dealership with a multi-point inspection report, you should still hire your independent mechanic to inspect the car. This relatively tiny expense can save you a ton of money later by preventing you from buying an unreliable used car.