Buying A Used Car

Tips On Buying Previously Owned Cars

Thinking about buying a used car? With the price of new cars increasing every year, it's no surprise that the fastest growing segment of the auto business is the used car market.

Buying a car that is just a year or two old can save thousands over the price of a new model. Older model cars are great bargains for basic transportation.

With the improvements made in automobiles over the years, a well maintained car should remain reliable for many, many miles.

Surveys have shown that the average person trades in or sells a car when it is less than five years old.

That leaves a lot of good cars out there with plenty of life left in them. If you are looking for a new model, buying a used car of the same style, only a couple of years old, can really be a good deal.

The biggest percentage of a new car's value is lost in the first few years of ownership. Accessories such as expensive stereo systems and power options are far less a factor in a resale price.

A used car is a great value and a wonderful way to save money on one of the most expensive items you must have in today's environment - a car.

KNOWING WHAT YOU WANT

You might be surprised how many people start shopping for a car without knowing exactly what they want. It is critical to define what your needs are and what car will best meet those needs.

Make the decision before you begin your used car search. It is a good idea to have at least three or four car choices in mind.

The availability of a particular used car depends on the supply and the demand of the market place.

So remaining open to several different types will save you money. Speaking of money, this is also an excellent time to decide exactly how much you can pay for a car.

Be realistic, set a high, a low and the ideal price and stay with it. Also figure out if you will finance or pay cash for the car.

Lining up the financing before you start to look can save you money and headaches in the long run. Car Loan Wiz can help you get the best rate on your auto loan.

Planning is important in any purchase, but especially when spending the amount of money you will have to spend to get a car in today's marketplace.

SOURCES FOR A CAR

There are many sources for finding a good used car including new car dealerships, used car lots, rental car lots, leasing companies and private individuals.

New car dealers may be the best source for finding high quality late model cars. These dealers only keep the best cars received as trade-in and have usually performed a thorough inspection of the car.

You may want to buy from a dealer who handles the brand that interests you most as a used car.

The dealership will have a full service department, a well stocked supply of parts and may even offer a parts and labor warranty. Rental returns are also offered by dealers and used car lots and are often an excellent value.

In addition, rental and leasing agencies periodically sell cars from their fleet on their own lot. Rental returns are typically less than two years old and tend to come well equipped with good warranties and a history of regular maintenance; however, be careful that you don't buy a rental that has been abused.

Many times these cars are treated poorly by those that rent them and can be a poor buy. Check them out closely, like you would any car.

No matter where you buy a car, find someone you are comfortable doing business with.

Ask your friends where they have bought cars and listen to their stories. Their bad experiences may help you avoid a similar mistake. Don't rush and don't let a sales person rush you.

Often people are afraid of losing out on the purchase of a particular car. Not to worry, there are lots of cars in the market and you have all the time you need to make just the right choice.

Haste makes waste and could lead to a poor decision on a car. Take your time and be a smart consumer. Many used cars are purchased from private parties. This can be a big mistake.

The stereotypical "little old lady" is not in the marketplace and probably never was. Sometimes unscrupulous used car sharks pose as private citizens to unload old junkers.

Many people are gray market dealers (no license, no lot, no regulations) and sell cars as if they are private citizens. Beware! Meeting this type of "shadow dealer" could end up being a costly mistake.

A car bought from an individual is not necessarily a better deal. Many times the price is higher and they can offer no warranty and frankly don't care if you are unhappy about a car once they have your money.

INSPECTING THE CAR

Once you find a car you like, it is time to check it out. Before you get started, keep in mind a few basic rules.

Darkness may hide problems. Be sure to do your inspection in day light only.

Don't inspect a car in the rain. Water can and will hide a world of sins. Nicks and scratches on the finish can be covered up by water and thin, faded paint looks smooth and glossy when wet.

Get the car into the brightest sun light possible and really look at it closely. Take a general look around the outside of the car.

A common practice of many sellers is to detail the car to increase its appeal.
Detailing usually includes thoroughly cleaning the interior and exterior, waxing and fixing minor cosmetic items.

Detailing a car is a nice touch except for when it's done to hide neglect or abuse.

Stand back and look down each side from the front and rear. Look for ripples, uneven contours, poorly fitted panels and mismatched colors which all suggest body repairs have been done.

Look for dents or rust around the bottom of the doors and fenders. Bubbles along the molding means rust underneath.

Open and close the doors, hood and trunk or hatchback. Be sure they fit and are easy to close without slamming.

Sagging or sticking doors may indicate that the car was wrecked or has been driven excessive miles.

Stand back 10 to 15 feet from the car and see if the car is level. If one corner seems lower than the others, it suggests a broken spring or other chassis or suspension problem.

Check the shock absorbers by pushing down on each corner of the car and letting go. Your car should bounce upward only once and then settle back to its original position.

If the car bounces several times, new shocks may be needed.

Check the tires. Uneven tire wear may indicate improper wheel alignment, tired shocks or worn front end components.

Look under the hood, check the belts and hoses for cracks or wear. Remove the radiator cap. Coolant should be a clean, greenish color. Brown sludge inside the neck suggests poor maintenance.

Pull out the oil dip stick. If the oil is gummy or grayish, the engine might have serious problems.

Check the automatic transmission fluid. It should be clear or reddish, not brown or black.

Look inside the trunk. Many "old time" used car appraisers will tell you that the trunk is an excellent way to judge how well the car has been kept. It should be clean and orderly and be sure there is an inflated spare and a jack and lug wrench.

INSPECTING THE INTERIOR

The interior can give you a good idea of the overall condition and how well the entire car has been maintained. Check the condition of the seats, belts and carpeting.

The upholstery should be clean with no serious rips, cracks or lumps. Lap belts and shoulder harnesses should be in good shape with no rips, tears or frayed webbing.

Check the windows to see if they open and close easily. Manual windows should crank smoothly. Power windows should not hesitate.

All glass should be free from serious cracks or scratches.

Test to make sure all exterior and interior lights and flashers on the car operate properly.

Start the engine and check the warning lights and gauges as well as all the accessories to make sure that they work. Make certain that the air conditioning blows very cold air.

Check the glove box to see if the Owner's Manual is still with the car. It contains maintenance information and important data on engine tuning, fluid capacities and replacement parts.

DRIVING THE CAR

One of the most important steps in assessing the condition of the used car is the test drive. This should be a fairly long drive, not just a cruise around the block.

A car's good points or problems are often apparent after a few miles. Start the engine and as the engine warms up, listen for any noises such as knocks, ticking and rattles which could indicate engine problems.

Next, put the car in neutral and rev the engine. Look in the rear view mirror to see if there is any smoke coming out of the exhaust.

If there is a lot of white or bluish smoke, the engine may need an overhaul. At idle, the engine should be smooth and quiet.

When first starting out, drive slowly to get the feel of the car.

The automatic transmission should shift smoothly without jerking, slipping or hesitation. A manual transmission should shift smoothly between gears without grinding.

The clutch should engage and disengage smoothly without grabbing or chattering and don't forget to make sure the reverse works.

Drive on a flat, smooth road and lift your hands slightly from the wheel. The car should track straight and be stable without vibration. If the car pulls in either direction, a front end alignment may be needed.

The brakes should grab evenly and the car should slow down in a straight line. If the car pulls to the left or right, it may indicate the need for brake adjustment or a system re-build.

Drive quickly over a rough road and listen for any loud squeaks or rattles.

If the car bounces or bangs over small bumps, the suspension may be worn. When you are through with the test drive, it's a good idea to turn the car off for a minute or two.

Then restart the engine to see how well it starts when hot. It is now time to move to the final and most important inspection, if the car has passed to this point.

PROFESSIONAL INSPECTION

If you like the car up to this point and think it just might be the one for you, it is time to get a professional mechanic to give the car a good going over.

This should be a mechanic you know and trust, perhaps one that has worked on your car in the past. In fact, in some cities, there are people who do car inspections and appraisals much like the ones done on homes.

Check your local yellow pages to see if there is one in your area.

Be sure that you get a second, professional opinion on the car of your choice before you get too caught up in the rush to buy your "dream machine".

The mechanic should check closely all major systems including body, engine, transmission, drive train, chassis, tires and brakes.

A compression test of the engine with readings on all cylinders should be performed.

If the dealer or individual selling the car is not agreeable to this, just walk away.

It is imperative that a professional give an opinion that has no vested interest in the sale. Once the professional inspection is done, review the finding and be sure you understand exactly what was found.

Serious problems or costly repairs should serve as a "red flag" to move on to another car. If the car checks out sound, it is time to move on to the final stage, the actual purchase of the car.

BUYING THE CAR

The toughest part of the entire process is the actual negotiation for the purchase of the car.

Auto dealers know this and use it against you to get what they want for the car and not what you would like to pay. Dealers spend every day, almost all day, locked in negotiations.

That is the nature of their business and if they are successful dealers, it is because they are good negotiators.

You will not likely beat them, but it is possible to level the playing field.

Here are a few secrets of negotiating to win.

First, set the stage by letting the dealer know, that yes you would like to buy the car-if you can agree on terms.

Next, raise issues like warranties, financing and the condition of the car. Confirm that you have the dealer’s agreement on these items separate from the asking price of the car before you move to the next stage.

If you have an agreement on things important to you, it is now time to raise the issue of the price of the car.

Get the dealer to state his offer first. Counter with what you think is a fair price, given agreement on all other issues like warranties, etc.

Be realistic, don't make an offer that you know is too low.

This only insults the dealer and raises a barrier to successful negotiations. Once both of you have stated what you think the value of the car is, ask the dealer to justify his position and do like wise.

The loan and "blue book" values are important at this point.

Remember that generally large luxury cars and subcompacts depreciate at the fastest rate. Domestic cars tend to depreciate faster than comparable imports.

Used cars with the highest resale value are typically best selling new models with desirable options like air conditioning, power steering and cruise control.

Various price guides are used by lenders, dealers and individuals to determine the value of used cars.

Do your homework in advance and know what the value of a comparable model to this car is in your local marketplace.

Offer to meet them half way on the difference between what they want for the car and what you are willing to pay.

Be firm and if you must walk away be prepared to do so, otherwise you are forced to agree to their terms and price. You have to make the call on this part of the negotiation.

But, bear in mind that the real value of a car is what someone is willing to pay for it and not some hypothetical book price. Be nice, be firm and be cool headed and most likely you will prevail in the negotiations.

Just remember that it is give and take and you win only if you get what it is that you want.

Follow these simple but time proven methods and you can achieve your objective - the purchase of a fine used car.

CLOSING THOUGHTS

Finding a good used car can take lots of time and effort. The more information you have about selecting a used car, the less likely the chance you will end up with a bad car.

There are a lot of good used car values out there, everything from budget priced, basic transportation to top of the line luxury sedans.

With knowledge and a little searching, you will be driving home a car that is ideal for you and also an excellent buy.

With the advent of lower interest rates and flexible terms, today's car-buyers are finding creative financing at an all-time high. And with the economic challenges facing us today, these programs are a welcome and much-needed benefit.

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