Used Car Dealership Near Batavia, NY

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How to Buy a Used Car in 5 Steps
 
Steve Castilone, Owner Castilone Used Car Dealership of Batavia, NY
 
September, 17, 2022
 
 
Shopping for a used car in New York is a lot of work, but when done right, it can be well worth your time. With the help of online car-shopping tools, you’ve got the best chance of making a good deal on a car that meets your needs and fits your budget.
 
There are plenty of reasons to buy used instead of new: It will save you money on car insurance, registration, taxes and depreciation, which is the loss in a car’s value due to wear and tear over time. It also makes sense because cars have never been more reliable. It’s not unusual for some well-maintained vehicles to be trouble-free for well over 200,000 miles.
 
But in the 2022 used car market, where supply is limited and prices are high — you may not be able to find exactly what you’re looking for at the price you want. And in some cases, buying a new car can be cheaper than buying used, especially if you’re looking for a late-model vehicle.
 
Despite those challenges, here’s an overview of the process, as well as what to look for when buying a used car, whether it’s from a dealer Like Castilone, from a private party or from an online retailer, which can be risky.
 
 
 
1. Determine How Much To Spend

There are two ways to buy a used car: Pay cash or take out a loan. If you’re paying with cash, budgeting is straightforward. Make sure you don’t spend all your savings and remember to set aside money for registration, insurance and possible future repairs. Most people take out a car loan, Castilone has an incredible Finance Department and offers Used Car Leases, so they can protect their savings or buy a more expensive model. It’s smart to get pre-approved for a car loan because it simplifies the buying process and puts you in a stronger position at the car dealership. You’ll see later how pre-approval fits into the process. Use an auto loan calculator to run the numbers on payments and term lengths.

Castlilone Finance recommends that you:

Plan to put about 10% down, which helps decrease the amount you’ll need to finance.
 
Aim to finance the car for no more than three years.
 
Budget so that, ideally, your monthly auto expenses — such as car payment, gas and insurance — won't be more than 20% of your monthly take-home pay.
 
 
 2. Research Reliability and Ownership Cost
 
Every used car is different. Some have been driven more miles and have more wear and tear. But, in general, you want to make sure you're choosing models known for their dependability. Consumer Reports (which requires a paid subscription) and J.D. Power collect maintenance reports from owners and rate all used cars.
 
You’ll also want to consider the total cost of ownership. Some cars may be cheaper upfront, but the costs can add up in the long run because of insurance, maintenance, repairs and depreciation. Automotive websites, such as Kelley Blue Book's Five-Year Cost to Own or Consumer Reports' Cost of Vehicle Ownership, can help you estimate these expenses.
 

3. Price The Vehicles

Once you find several cars for sale in your area — but before you physically inspect them — look up that car model in a pricing guide such as Kelley Blue Book, Edmunds and the National Automobile Dealers Association. You can use the guide to estimate the market value of the actual car you’re looking at by assessing its condition based on factors such as age, mileage and options. With that in hand, you’ll have the information you need to negotiate effectively.
When you look up a price, include the following information:
 
Year, make and model. The model is sometimes called the “trim level.” For example, when looking up a 2020 Nissan Sentra, SV is one of several trim levels.
 
Options. These are special features installed when the car was built, such as a navigation system.
 
Mileage. If a car has been driven more or less than the typical mileage, the price is adjusted accordingly.
 
Condition level. Read the descriptions of the condition levels carefully, as each pricing guide has its own rating methodology for determining the difference between “clean” and “outstanding,” for example.
 
Most pricing guides give you several different prices. If you're buying the car from a dealer, look at the “dealer retail” price. If your next-door neighbor is the seller, you should look at the “private party” price. You might also notice that pricing guides tell you what the car is worth as a trade-in. Make sure to price your current car if you plan to trade it in at the dealership.
 
 
 
4. Pull The Vehicle History Report

Run a vehicle history report on the cars you’ve selected. Using the vehicle identification number, or VIN, you can get a detailed report of the car’s history from Carfax or AutoCheck. It’s a quick way to know if you should seriously consider buying this car.
 
In some cases, online listings will include access to free vehicle history reports. If not, it’s worth it to buy one.
 
What you'll learn from the vehicle history report:

Does this car have a clean title? If a car’s been in a serious accident, fire or flood, and was “totaled” by the insurance company (declared a total loss) it still might be driveable. However, the insurance company will issue a “salvage title” to alert future buyers. Steer clear of cars with a salvage title because it kills the resale value, and the car might still have hidden problems.
 
Serious accidents are reported to the insurance company and will probably be on the vehicle history report.
 
Shady sellers might spin the odometer back to increase a car’s selling price. The vehicle history report can alert you to this scam.
 
The report will list each time the car changed hands.
 
Some reports show if required maintenance was done on time and where the work was performed.
 
 
5. Make The Purchase

Before taking ownership of the car, you should add it to your insurance policy. Then, you only need to pay for the car — usually with cash or a cashier’s check. Make sure you get a title and have the seller sign it correctly. (If the seller’s name isn't on the title, you could be a victim of title jumping, which is illegal.) When in doubt, check the state’s registry website for more information. Many states allow about 10 days to transfer ownership.
 
If you're buying from a private party, and there is still a loan on the car, call the lender to find out how to close the deal. If the lender is a bank, offer to meet the seller in a branch office and sign papers there.
 
If you’re at a dealer, even if you have a pre-approved loan to pay for the car, the dealership’s finance manager will probably offer to beat the terms of the loan. It doesn’t hurt to see if they can get a better interest rate. Just make sure all the other terms of the loan are the same.
Before the contract is drawn up, the finance manager will also likely pitch you additional products and services. Buying an extended warranty at the right price can provide peace of mind. But check first to see how much warranty still remains on the car. Many manufacturers now include “powertrain” warranties up to 60,000 miles or more. This covers all the parts that make the car move, such as the engine and transmission.
 
Once you sign the sales contract, the car is yours. So take your time reviewing the contract and don’t let yourself be pressured into signing just to get it over with. The contract will include the agreed-on sales price and these additional items:
 
State sales tax. This is a percentage of the cost of the car.
 
Documentation fee. It seems crazy but the dealership actually charges you for filling out the contract. This “doc fee” is limited in some states.
 
Registration fees. A dealer can register the car for you — one less thing for you to worry about.
 
Ask the finance manager to explain any fees in the contract. If they can’t, ask them to the fees out.

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