Buying a used car instead of a new one may be a better financial
decision, but buying a good used car for a good price is a
little more challenging. You have to:
1. Decide what car you want (and which will be a good choice).
2. Find one (there are interesting alternatives).
3. Learn the value of used cars (so you pay a reasonable price).
4. Evaluate the condition of used cars (to make sure you buy
a good one).
Research
Consumer Reports has excellent general information about the quality,
reliability, safety ratings, ballpark insurance rates, and
recalls of any car, but to get access to these articles online
you must pay a $3.95 monthly subscription fee.
Finding a Good Used Car
There are some obvious places to look for a used car: local
newspapers, used car lots, watching for "for sale" signs.
Some other places to look: online car sellers or car rental
companies in parked and passing vehicles or corporation fleet
cars (whose cars have been professionally maintained, have
low mileage, and since they are written off as business expenses,
often are offered at lower prices for a quick sale).
The Internet also offers some interesting possibilities.
For example, a site called imotors.com will find the car you're looking for from reputable sources
(usually leased cars), perform a thorough check-over, and
deliver your car to a nearby delivery center with a 7 day
return policy and a 3 month/3,000 mile warranty.
Pricing
To find out the value of a specific car in your geographic
area, you can use the Kelley
Blue Book, which is the guide that banks typically use
to value cars. Beside the blue book, looking through your
local paper can give you a sense of what comparable cars are
selling for.
Evaluating Used Cars
With a little knowledge, a lot of common sense, and maybe
some professional help, you can competently size up the quality
and mechanical health of a used car.
But before you take the time to test drive a car that you
think may be the one, check the title of the car. By checking
the title, you can learn if the car:
- Has ever been totaled in an accident or natural disaster
(and then repaired and sold for a large profit)
- Was returned as a lemon
- Was ever repossessed
- Had its odometer rolled back
- Has been in a serious accident (in some states)
These are all good reasons to walk away from a car even before
taking a look at it. To check the title, go to CarFax to access their database of over 750 million vehicle records (in
the U.S. and Canada).
Finally, after you've checked out the title, inspected the
car, and taken it for a proper test drive, invest the $30-60
it will cost to take it to an independent, trusted mechanic
for a thorough check over. A mechanic will be able to perform
a more thorough diagnostic, and spot problems that could cost
you a lot of money down the road. It's a cheap price for peace
of mind.
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