How I Saved a Ton of Money by Buying 3 Used Cars

I've never owned a new vehicle and may never own one, although I will admit that my wife has owned one, and there are certainly nice things about them. I'm not knocking new vehicle ownership in any way, but buying used vehicles certainly has some distinct advantages, and in my case, I kind of like driving a used car.

Ever since I graduated high school, I never really felt the urge to have the biggest, best and fanciest when it came to vehicles. I'd rather have cheap to buy, cheap to maintain, and cheap to get rid of when it comes to my transportation. And no -- for all of you that were wondering; I've never had to spend a ton of money to fix them up or keep them running, and I'm by no means a mechanical genius. The greatest expense I ever had was with my first used car, and that was a $1500 overhaul after I left it sitting idle for two years while I was away at college.

The following are my thoughts on the benefits of buying used vehicles, a few of the dangers, and how I've bought three used cars that have served me well over the last 15 years, especially considering how little I paid for them.

What I Look For

When I purchase a used vehicle, the three main things I look for are price, planned usage, and where or from whom I am buying. Age and mileage don't usually deter me. A vehicle can be old and driven long distances, but if it's well maintained, doesn't mean it still doesn't have a few good years left in it. Almost all of my used vehicles were either at least ten years old, had over 100,000 miles on them, or both.

My first used vehicle I bought in high school from a family friend for $1500. It was well loved and cared for by the previous owner. The next vehicle was purchased from a small used car lot (recommended by my boss at the time) for only $800 because it had suffered hail damage in a storm (it was pockmarked everywhere), but otherwise ran fine. And my third vehicle, the costliest at $3500, was also purchased from a small used car lot that came recommended from a co-worker of my wife.

Since I was doing mostly city driving, I wasn't particularly worried about breaking down in the middle of nowhere should something go wrong. I also wasn't in a high profile or sales type position at work, where image may have been reflected by the type of vehicle I drove.

I look at my used vehicle purchases like this -- for many people, $3500 is a new flat-screen television. But even if I drive the vehicle for a year and it blows up, it was probably still cheaper than buying new and making payments. Still, even with that type of attitude, my used vehicles each lasted me on average about four years, and only one was let go for mechanical issues, the other two I got rid of because of moves.

Benefits of Buying Used

Now I'm not saying used cars are for everyone. If you are planning to do extensive traveling or take regularly scheduled long-distance trips, you may want a vehicle that is newer and that you may have more confidence in -- although just because a vehicle is new doesn't mean it won't have the same problems as a used car. I've always had jobs were my commute is in an urban area and typically no further from home than about 12 miles. I don't take a lot of long distance road trips either.

This means that used cars were great for my situation. These vehicles were much cheaper to insure, since if I was in an accident I could just have the vehicle hauled away and buy another. It also meant that with parking in the city, I didn't have to worry much about them being scratched, dented, or stolen. This isn't to say I didn't care about my vehicles; I just didn't have to worry about them as much as I might a newer vehicle.

When I was done with each of these cars, the transition period was not a stressful one. With the first two, I simply donated them to charity (which in some instances can earn you a tax deduction). With the third, I sold it to CarMax for $1900 after purchasing it for only $3500! By the way, I actually haggled with the dealer when I purchased the car and got him to come down from a $3900 initial asking price, making it an even better deal.

Things I Check and Do

I am certainly not an auto mechanic, and I don't know a ton about cars, but sometimes using a little common sense can get you a long way. First off, when I buy from a dealer, it's always through a recommendation, and I let the dealer know how I got his name. This not only lets the dealer know that someone else was pleased with his services, but reminds him that word of mouth can be an important part of his business and that should he do right by me, I might be willing to pass the good word along to others.

Secondly, while the looks of a vehicle might not tell you everything about it, it can provide some indication as to how previous owners treated the vehicle or why the vehicle is priced the way it is. As I mentioned with my hail damaged vehicle, it was severely pockmarked. Many people would find this a detractor, as visually, the car was not what you might call attractive, but it ran just fine. Things like scratches, rust, sizeable dents, cracked bumpers or fenders, and similar indicators could be signs that the car has been in accidents or that the previous owner did not care enough to treat his car with care and respect.

I always test drive my cars before I buy. A spin on the open road, both in city and highway driving situations can give you a feel for its condition. And while you can't be sure this type of test will tell you everything you need to know, it's a start. I've always been told to take a used car to a mechanic to have it checked out before buying, but have never done so. This is however is another option in conducting your due diligence, as is doing one of those vehicle history reports online -- something else I've never done, although when I sold my last car to CarMax , they did one and found that my vehicle had once been a rental car - an interesting fact of which I wasn't aware.

While I don't have luck with everything, I seem to have done okay with vehicles. And while they may not always be pretty or stylish, if you have a little confidence, your situation allows, you conduct a little due diligence, and you care more about a reasonably priced ride than a flashy wallet buster, then you may have luck saving money with used vehicles as well.

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Disclaimer: The author is not a licensed financial or automotive professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. For financial advice, readers should consult a licensed financial advisor. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.