Buying a Used Vehicle
Sources of Used Vehicles
New-Car Dealers
I know you are probably asking how would New-Car dealers have used cars, but customers usually trade-in their old vehicles for new car purchases. They usually sell used cars at a higher price than used-car dealers.
I know you are probably asking how would New-Car dealers have used cars, but customers usually trade-in their old vehicles for new car purchases. They usually sell used cars at a higher price than used-car dealers.
Used-Car Dealers
Used-car dealers usually sell cars that are older than those offered by new-car dealers. If they do give warranties, the coverage is limited. You will probably be able to get a lower price from a used-car dealer than from a new-car dealer. Some of those used-car dealers purchase vehicles that have been poorly maintained by the prevous owner.
Private Parties
A private-party sale can be a bargain if the vehicle was well maintained; it can also backfire. Since few consumer protection regulations apply to private-party sales caution is suggested. Ask alot of questions and get prove of repairs and maintenance.
Other Sources
Auctions and dealers that sell vehicles previously owned by businesses, car rental companies, and government agencies.
They are usually serviced regularly. But you do have to consider that those cars have seen alot of different drivers, or like police vehicles, have undergone extreme use. Try to avoid a car that looks like it’s in good shape but has experience heavy use.
Consumer Protection for Used-Car Buyers
The Federal Trade Commission (FTC) requires businesses that sell used cars to place a buyer’s guide sticker in the windows of cars available for sale. This disclosure must state whether the car comes with a warranty and if so, what protection the dealer will provide.
If no warranty is offered, the dealer assumes no responsibility for repairs. About half of all used cars are sold without warranty.
You should have the car inspected by a mechanic.
You should follow two general rules when you buy a used vehicle. First, buy your vehicle from gives you some assurance of the vehicle’s reliability. Second, make a detailed investigation of the vehicle’s condition and performance potential.
The Inspection Process
Have a trained and trusted mechanic of your choice inspect the car, to inform you about the estimate of costs of potential repairs. This will help you avoid any big surprises when the vehicle becomes yours.
Before making a final decision, find out if there have been safety recalls on the car. If so, has it been taking care of? You can obtain information about recalls from the National Highway Traffic Safety Administration. This agency also has an auto safety hot line (1-800-424-9393) for consumers to call to find out about auto recalls.
Used-Car Price Negotiation
You can check local newspapers ads for the prices of comparable prices and the so called blue book. (The official used car guide)
Those are available at banks, credit unions and bookstore. Since the blue book is only updated every month, some sellers and buyers use the black book, a weekly report of automobile auction sales published by National Auto Research.
A number of factors influence the price of the car. The number of miles the car has been driven, the car’s features and options affect the price. A low-mileage car will cost more than a comparable car with higher miles. The overall condition and the demand for the model also affect the price.
If more people buy new cars and trade in their old ones, the increased supply keeps the prices down. On the other hand, when the demand for new cars is low and people don’t trade in their cars, the prices go up.
If you decide to buy a new car or used-car, make sure you do your research and get all the information on the car in question. This can save you alot of money in the long run and alot of heartache.
