Used Car Buyer’s Guide

Bang! Crunch! Rattle! These are all descriptive words that tell us that we need to start thinking of repairs or a new form of transportation, hopefully, before we hear the worst sound that a car can produce, and that is silence. For most of us, that will mean another car. Then the Problem becomes whether we want to buy a new car, which has its benefits: warranty, free repairs, coffee while you wait in a nicely appointed room, etc. New, of course, has its drawbacks, chief among them is the money. Many new cars cost as much as a small house, and, unlike a house, it just becomes worth less and less. The alternative is used or pre-owned. What, you may ask, is the difference? Usually, it is how nice the dealership looks.

How to Buy a Pre-Owned Car

Here is a small checklist that may help you organize your efforts:

Determine your need.
� How much are you willing to pay in cash? Or
� How high of a payment you can afford?
� Gas mileage that you want.
� How much power do you want?
� How many passengers do you need to carry?
� How much will the Insurance cost?

Do your home-work.
� Check out the N.A.D.A Web site
� Check out Consumer Reports (at most major libraries)
� Use an Online service such as CarFax
� Compare prices for similar cars at several dealerships.
� Compare prices with online services

Determine where to buy
� Local pre-owned dealer
� Local new car dealer
� Online service
� Combination online/showroom service
� Individual

Drive a hard bargain
� Always make a low offer, you just might get it at that price.

Determine your need.

Everyone has a different perspective on the perfect car. You may be a frugal person who doesn’t want to spend large amounts of cash on something that will continue to be worth less and less. The savvy used-car buyer has two choices to make: cash or charge?

If cash is the option, then the limit of what you will spend will be available cash on hand. If the purchase will be financed, then the size of the payment is the crucial issue. This, of course, will be determined by the interest rate. Often times, the dealership will carry the note. Historically, those that do their own financing will charge you a fairly low rate, but the overall cost of the package will be much higher.

In today’s wildly escalating gasoline prices, the gas mileage of the vehicle will be an issue for most people. Automobile manufacturers do test drives of their models to determine the gas mileage for both city and highway driving. Actual mileage results that individual vehicles achieve vary tremendously. This is not only due to driver idiosyncrasies, but also to differences in the vehicle themselves. There is a balance between the function of the vehicle and the efficiency of the vehicle. If the vehicle will be carrying or pulling heavy loads, some sacrifice of mileage may have to made.

Many vehicles have limited interior space, and that will have to be considered by determining the number of passengers and their accoutrements that will be transported on an average day.

Finally, how much will it cost to insure? The smart little red sports car that gets good mileage and has a very affordable price may cost more than you want to spend on insurance.

Do your home-work.

There are several sources that are either free or low-cost and will help you to make informed car-buying decisions. The first of these is the National Auto Dealer’s Association’s Web site at: http://www.nada.com .This site offers information on both new and used cars, as well as a variety of other forms of transportation. Simply select “Used Cars” and follow the prompts. You will end up with a price guide that will cost you nothing but a little computer time. A good deal at half the price, especially if it saves you money at the close.

Another free source of information for fairly new cars is the consumer reports magazine. Most major libraries have them archived and searchable for the vehicle you are considering.

A research tool that will cost you some money is CarFax. This service will generate a report for $19.99 that will determine if the vehicle you are considering has been in a wreck, what damage was sustained, what the odometer reading should be, whether is was ever determined to be a lemon, who has owned it, and, importantly, whether it is the correct identification number. All you have to do is to go to http://www.carfax.com and enter the Vehicle Identification Number (VIN). There is a 100% money back guarantee if not satisfied with their service. There is also an option for unlimited number of searches for a slightly higher cost within a given time frame.

Often times, nothing replaces good old-fashioned comparison shopping. Go to a few dealers and use a few online services to see what can be learned about the vehicles in which you are interested.

Determine where to buy

This is the hardest decision since there are so many places to go for a pre-owned car. In the past, the only options were to either go to a local dealer, both new and used car dealers sell used cars, or buy from a private individual. Both of these options have their pros and cons. The individual will probably have a higher price and have no warranty at all. The local dealer gives a buyer a bit of confidence. There are shiny cars and, almost to a point, the salespeople at these dealerships are very personable and believable. Besides, if something goes wrong you have someone to holler and complain at. There is some options now that are interesting. Of course, the most adventurous souls can go right on to Ebay at http://ebay.com and purchase a vehicle at what appears to be a bargain price. A good friend of mine buys and sells motorcycles that way. He gets a truthful seller about every third or fourth time. If the purchase of the vehicle will get you back and forth to work, then this is probably not a good option. Ebay says that it backs its sales etc., but it doesn’t work out that way.

A safer option is a company called CarMax. They have a Web site at http://www.carmax.com and offer pre-owned cars that have been inspected. They have a searchable database that has a tremendous number of vehicles and they have some unique features. They have stores as well as their online sales. Their corporate policy is that they want their customers to have a no hassle, one-stop shop. To achieve this, they do not haggle over price. Customers get their low dollar price up front. All vehicles get their 125 point inspection, which, according to Trina Lee, allows the company to make this statement: “We guaranteed that vehicles we sell on our lots have not had frame or flood damage. In other words, they have not been in any major accidents.” Their policy is to include a five day money-back guarantee and a limited 30 day warranty on all cars.

These policies are based on market research

Drive a hard bargain

Many of the car dealerships, individuals, and specialized services are small operators who are willing to deal. If you make a low offer, stick to it as long as you can, especially if you have found a similar vehicle at that price. Remember, any money you save on the purchase of the vehicle is money that you do not have to earn again.

Good Luck!