Better Used Car Purchase
Written by Deborah Murphy - Wednesday, 20 August 2008
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Used car purchases make sense on so many levels, but there’s always that fear that you’ve just driven off in a ticking time bomb slated to explode within the first weeks of ownership.
With a little bit of common sense and effort, you can eliminate a lot of those fears. Just keep in mind all the advantages of buying a used car:
- New cars drop $1,000 to $2,000 of their value as soon as they’re driven off the lot.
- Within three years, that new car’s value has dropped to 60- to 70-percent of its original value.
So, we’ve established that used cars can represent a great value; now, how to increase the odds that’s what you’re getting.
Timing may be everything
Consider when to launch your used car search. If you’re in the market for a pick-up or SUV, the summer of ’08 will be the time to get good deals. With gas prices peaking and truck owners realizing they don’t really need the cargo capacity and looking for more fuel efficient vehicles, the selection and pricing will be prime. If you prefer the security of going through dealers, late summer and fall are when dealerships need to open showroom space for new models. With car sales in a slump, buying a “pre-owned” certified vehicle at a dealership will give buyers greater flexibility in the negotiation process.
Prepare to get a better deal
Prep for a used car follows the same path you would take for a new car: figure out your budget, determine your needs, find the vehicles that meet both your needs and your budget and determine your source of financing. The most important part of your research into the final list of possibles is to check reliability assessments and maintenance costs. Good sources for reliability ratings include J.D. Power and Associates, Consumer Reports and MSN Autos. For maintenance costs, make a few calls to mechanics who specialize in your chosen vehicles.
Figure out what you should pay for your used car
Once you’ve narrowed your selection to two or three models, check websites for used car in your area to determine the price range. If the spread is from $10,000 to $20,000, you can figure the lower priced cars are in bad shape, the higher range, delusional. There should be a significant bell curve of cars available in the $15,000 to $16,000 range and realizing room for negotiation, you know your car should be available for $13,000 to $14,000.
Where to go?
This is a pretty simple decision.
- Private sales offer the best prices and a less experienced negotiator, but no warranty or recourse if the car dies on the way home.
- Used car dealers will price their vehicles below a new dealer for the same used model. If it’s an established dealer who’s been around for a while and has a good reputation, this could be a good deal and you have a decent chance of getting a warranty at best or at least some recourse if you run into problems. Be careful and check the dealer out in advance.
- New car dealers will have the highest prices but could also provide some form of certification as to the vehicle’s condition. Even more so than a used car dealer, a new dealership can’t afford to sell junkers.
- Avoid auctions or used rental cars unless you’re mechanically savvy.
What you should look for
- In a perfect world, the seller will have all the service and repair records. This gives you both a good history of any past problems as well as an indication of how well it was cared for.
- Walk around the car looking for any fluid leaks, undamaged body panels, aligned hoods and doors, even tire wear.
- Take at least a 30 minute test drive to give the car a chance to warm up. Listen for a quiet, smooth engine and transmission; look for accurate, straight stops, the kind of acceleration you should have for the engine size, crisp handling, etc.
We could cover pages of things to look for in a used car. If you’re a novice at evaluating car characteristics, take a friend with you who is.
Check and double check
Now it’s time to play detective. Check the history of the vehicle before you seal the deal. All you need is the VIN number and there are even websites that tell you where to look. You can use CarFax, your local DMV or a number of other websites. What you don’t want to see in the report is a car that has been totaled and retitled for sale. The report can also give you a good indication of the accuracy of the mileage.
Before you fork over the payment, or even a deposit, take the car to your mechanic for a final check. It doesn’t matter if you’re buying a $2,000 relic, you should expect a car in reliable running condition.
The art of the deal
If you have confidence in your ability to negotiate the best deal, skip this section. For the rest of you, the best words of advice are to pretend you have the confidence to negotiate the best deal. Your goal is not be liked by the seller, but to get the best value for your dollar.
- Don’t be afraid to barter and be prepared to walk away if you’re not satisfied with the price, or the car.
- Go into the conversation with an idea of what you want to pay for the car and stick to it.
- If you’re buying from a dealer, don’t fall for any extras that pop up after the price has been set.
- Be a hard nose, even if it goes against your nature.
Armed with all this information, you’re in good shape to get a better used car buying experience. Remember, you’re not looking for your soul mate; you’re looking for a piece of metal with a motor in it.
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