If you’re thinking about buying a used car, then give yourself credit for financial smarts. New cars depreciate by thousands of dollars the moment you drive them off the lot and typically lose 45 percent of their value over the first three years.

By comparison, used cars offer great value—even better lately, with inventories swelled by the incentive-fueled new-car buying boom of recent years and many models coming off short-term leases. “It used to be that used-car shoppers had to settle for vehicles without the latest safety equipment,” says Paul Calisi, who runs AAA’s Auto Buying Program.  “But with so many vehicles available now, you have no trouble finding ones with side airbags, stability control and other features.”

Before you buy smart, however, you have to shop smart.
Follow these tips:

• Target your needs, not your wants. Analyze your needs—and your budget—realistically before starting a search. “Falling in love with that flashy coupe can become a real problem if you have small children or other family members who require a four-door or minivan,” says Calisi. “Once the novelty wears off, you’ll be stuck wondering how to fit the family into the car that was calling your name.”

• Know the total cost. Used-car prices are notoriously slippery, depending on supply and demand for particular models in particular areas. Websites such as Edmunds (www.edmunds.com), Kelley Blue Book (www.kbb.com) and the National Automobile Dealers Association (www.nadaguides.com) give current prices. Always factor mileage into your calculations, research safety records and factor in ownership costs, especially gas and maintenance expenses.

• Find financing first. Shop for a used-car loan before taking a test drive. Whether you’re buying from a private seller or a dealership, having financing in hand puts you in a stronger bargaining position.  Besides, it gives you a basis for comparison when the dealer offers financing, as he most probably will.

• Ask for service records. Although you’ll find reliability ratings for particular models on the Web, experts emphasize that past preventive maintenance means just as much in predicting future trouble from a specific vehicle. If you go to a private seller, ask for records of regular oil changes and other maintenance, as well as the reason why he or she is selling the car.

• Test drive before you buy. A good test drive should take 30 to 60 minutes in a variety of conditions—in stop-and-go traffic as well as on the expressway—with the sound system off. Ideally, you should test the vehicle in the environment in which you’ll use it every day.

• Take a history lesson. To protect against odometer fraud, re-titled wrecks, flood-damaged cars and other scams, smart buyers always get a vehicle-history report from CarFax or other providers. Nowadays, many dealers offer a history report as part of their service. If your dealer doesn’t, or if you buy from a private seller, you can get AAA discounts from CarFax at AAA.com.

• Consult a mechanic. As the final step before writing the check, take the car for a thorough inspection by a trusted mechanic, such as one of AAA’s Approved Auto Repair stations. It might mean a few extra bucks, but you can chalk up the costs to research. The mechanic can uncover any hidden trouble or incipient problems that might affect your decision or your price negotiation.

The Best Online Lot You’ll Ever Visit

After simplifying new-car shopping with low, no-haggle pricing, AAA New York’s Auto Buying Program now offers used cars, too. The redesigned website, accessible at AAA.com under the “Automotive” tab, offers a huge inventory of pre-owned vehicles available from AAA-endorsed dealers.

“Endorsed dealers have a vested interest in making certain that AAA members are treated fairly,” says Paul Calisi, who runs the Club’s program. “So, they’ve agreed to keep price negotiation to a minimum.”

Moreover, AAA’s used-car inventory doesn’t include listings from private sellers or used-car brokers, essentially middlemen who mark up prices for profit. “Members can rest assured that they’re purchasing a quality vehicle with a mandated warranty,” says Calisi. The inventory, which is updated every evening, includes certified used cars that have undergone rigorous inspections and come with a longer warranty.

The site’s other unique features include:
• Foolproof accuracy. Listings on other sites often have inaccurate or incomplete information. AAA’s program uses sophisticated software to decode each car’s vehicle-identification number, which matches the factory-installed equipment lists for that particular make, model and year back to 1988. You can count on the vehicle coming as described.

• Special search-and-save functions. Unlike other sites, AAA’s lets you search the database by make, model, year, price, mileage, fuel economy and other criteria, and it features interior and exterior photos of most vehicles. You also can save information on a vehicle of interest as you continue your search.

• More information, easier navigation. You’ll find no annoying advertisements for auto insurance or financing disguised as hyperlinks to information sources, as is so common on commercial used-car sites. AAA’s site also provides safety information, fuel-economy ratings and directions to dealerships.

• Members-only incentives. Most AAA-endorsed dealers offer a $200 credit toward any future service or repair work done in the dealer’s service department.

Ask the program office about other incentives.
Once you find a car that interests you, contact the dealer or ask him to contact you. (Your contact information never will be used for any other purpose.)  You should speak only to the AAA Auto Buying Program’s representative at the dealership; the program’s office (800/318-4981) will identify the specially trained representative at each particular location. Bring a copy of the program’s certificate (available online) to the dealership.