The Used-Car Buying Checklist: 12 Steps Before You Pay

Buying a used car can save you a lot of money compared with buying new, but only if you avoid the mistakes that turn a bargain into a money pit. Most of those mistakes happen before the purchase: skipping the history check, trusting a quick test drive, or signing paperwork that does not say what you think it says.

This checklist walks through 12 steps in the order you will usually need them. Whether you are buying from a dealer or a private seller, working through every step takes a few hours spread over several days, which is far less time than you would spend dealing with a bad car.

Before you start shopping

1. Set a budget for the total cost, not just the price

The asking price is only part of what you will pay. Build your budget around the total cost of getting the car on the road and keeping it there:

• Sales tax, title and registration fees, which vary by state.
• Dealer documentation fees, if you buy from a dealer.
• Insurance, which can differ a lot between models.
• A pre-purchase inspection, plus a cushion for immediate maintenance such as tires, brakes or fluids.

2. Shortlist models and research their weak spots

Narrow your search to a few models that fit your needs, then research each one's common problems, typical repair costs and fuel economy. Owner forums and reliability surveys can tell you which model years to favor or avoid. Knowing a model's known issues tells you exactly what to look for during the inspection.

3. Arrange financing before you negotiate

If you need a loan, get pre-approved by a bank or credit union first. A pre-approval tells you how much you can borrow and at what rate, and it gives you something to compare against any dealer financing offer. If you are buying from a private seller, you will need your own financing or cash, because private sellers do not offer loans.

Once you find a car you like

4. Get the VIN before you visit

Ask the seller for the 17-character vehicle identification number (VIN) before you travel to see the car. Every car and light truck made for the U.S. market since model year 1981 has a standardized 17-character VIN, and it unlocks almost every check that follows. A seller who will not share the VIN is a seller to skip. If you are unsure where to look, our guide on how to find a VIN covers the usual spots.

5. Run a vehicle history report

Use the VIN to run a VIN check. A history report can show title brands such as salvage or flood, reported accidents, total-loss records, past odometer readings, the number of owners and how the car was used. Compare what the report shows with what the seller told you. If the details do not match, ask why before going any further. You can see what a report covers in our sample report.

6. Check for open safety recalls

Look up the VIN on NHTSA's recall lookup to see whether any safety recalls have not been repaired. Recall repairs are free at authorized dealers for that brand, but you should know about them before you buy, especially if parts are not yet available. Our guide to checking for open recalls explains what the results mean.

When you see the car in person

7. Match the VIN on the car to the paperwork

Find the VIN on the dashboard, visible through the lower corner of the windshield, and on the label in the driver's door jamb. Both should match each other, the title and the history report exactly. A VIN plate that looks tampered with, a missing door-jamb label or a mismatch is a serious warning sign.

8. Inspect it yourself in daylight

See the car in good light, on a dry day if you can, and ideally with the engine cold. Walk around it slowly and look for:

• Uneven gaps between body panels, or paint that does not quite match from panel to panel, which can indicate accident repairs.
• Rust on the wheel arches, rocker panels, subframe and under the doors.
• Tire tread wear that is uneven across the tire, which can point to alignment or suspension problems.
• Fluid leaks under the car and on the engine.
• Warning lights that stay on after the engine starts.
• Signs of water damage such as a musty smell, silt under the carpets or rust under the dashboard.

Also compare the interior wear with the mileage. Our guide on spotting odometer rollback explains what to look for.

9. Take a real test drive

Plan a route of at least 20 to 30 minutes that includes slow city streets, a highway on-ramp and some bumps. During the drive:

• Start the car cold and listen for unusual noises or hesitation.
• Check that it accelerates smoothly and that the transmission shifts without jerking or slipping.
• Brake firmly in a safe spot and feel for pulling, vibration or grinding.
• Notice whether the steering wanders or the car drifts to one side on a straight road.
• Test the air conditioning, heat, windows, locks, lights, wipers and infotainment.

10. Get an independent pre-purchase inspection

Before you agree to buy, have a mechanic you choose inspect the car. A pre-purchase inspection can find problems you cannot see on a test drive, such as frame damage, worn suspension parts, leaks or stored trouble codes. A seller who refuses to allow an inspection is telling you something important. Even a certified pre-owned car is worth a second opinion.

Before you hand over money

11. Read every document

Do not rush the paperwork. Check that:

• The title is in the seller's name, matches their ID and is free of any undisclosed brand. If there is a loan on the car, understand how the lien will be paid off and released.
• The odometer reading on the title or disclosure statement matches the dashboard.
• At a dealer, the FTC-required Buyers Guide is posted on the car and tells you whether it is sold "as is" or with a warranty. The FTC explains this in its guide to the Used Car Rule.
• The sales contract lists the agreed price, every fee and any promises the seller made, such as repairs to be completed before delivery. Spoken promises are hard to enforce, so get them in writing.

The process differs between dealers and private sellers in several important ways. Our guide to buying from a private seller vs. a dealer covers the details.

12. Pay safely and complete the transfer

Use a traceable payment method, such as a cashier's check you have verified directly with the issuing bank, a bank transfer completed at your bank, or financing paid directly to the seller or lienholder. Avoid carrying large amounts of cash, and never pay a deposit to a seller you have not met for a car you have not seen.

When you pay, make sure you receive the signed title, a bill of sale, the odometer disclosure, all keys and any service records. Then contact your insurer and register the car with your state's motor vehicle agency within the deadline your state sets.

The checklist at a glance

1. Budget for the total cost of ownership.
2. Research models and their known problems.
3. Get pre-approved financing.
4. Get the VIN before visiting.
5. Run a vehicle history report.
6. Check for open safety recalls.
7. Match the VIN on the car to the paperwork.
8. Inspect the car in daylight.
9. Take a thorough test drive.
10. Get an independent inspection.
11. Read every document before signing.
12. Pay safely and complete the title transfer.

If a seller tries to rush you past any of these steps, slow down. A good car will still be a good car after you have checked it properly, and there are always more good cars for sale.