One of the simplest ways to buy a car without burning a hole in your pocket is to buy a used car instead of a new one. A car’s value starts depreciating as soon as you drive it out of a dealer’s lot, and it loses a significant amount of its value in the initial years. But for a pre-owned car, its first owner has borne the steep depreciation in the initial stages. So, you end up paying much less.

That said, you must keep some points in mind to ensure that you get a good deal on a pre-owned car. Here’s what to consider while buying pre-owned cars.

• Research and find the right car
  Finding the right one can be more difficult when buying a pre-owned car as compared to a new one. When buying a new car, all you have to do is pick your favorite, go to a dealer, make the payment, and drive home your new ride. But there are several steps in between if you want to buy a pre-owned car. You must pick a model that you wish to buy, look for a place where you can find a pre-owned version of the model on sale, check the mileage the vehicle is giving, check its condition, and ensure that it has been serviced and maintained properly. Once you have done all this, you need to ensure that the seller is genuine. A lot of research goes into buying pre-owned cars, so you must stay on top of your game to avoid any hassles later on.
• Think about financing options
  You don’t need to worry about this if you’re planning to buy the car by paying cash upfront. But if you are also planning to get your car financed like most people, you must put some thought into how you’re going to do it. Dealer financing is one way to go about it, but getting your finance pre-approved is a smarter option if you wish to save. This is because dealer financing works like a wholesale insurance offer, often including additional interest rates. Sometimes, the car dealer tries to beat the pre-approved finance and offers a better deal, but you will not get this opportunity if you don’t have a pre-approved loan. On the other hand, external financing is the only option if you’re buying the car from a private party.
• Don’t skip the test drive
  A common problem with people who wish to buy pre-owned cars is that they do not take the car for a test drive. As many as 16 percent of pre-owned car buyers do not take a test drive. In contrast, people who buy new cars drive up to seven cars on average before purchasing. This difference is why many cars are being passed on to their third or fourth owners now. Not testing a car before buying it can put you at a higher risk of regretting your purchase decision at a later point. So, don’t forget to take a test drive before buying a pre-owned car. It will also aid in determining if the car has any issues.
• Get the car checked
  Rope in a mechanic to inspect a pre-owned car after taking a test drive. The inspection might cost you, but it will surely help you save in the long run. That said, getting the car checked by a mechanic may already be an offer if you’re purchasing from a dealer, and the seller may also pay for it. In case you’re buying from a private party, you may have to ask for the service and determine whether you’ll have to pay for it.