Choosing to buy a used vehicle has many benefits, but there is always risk involved. If the used car buying process is gone about in the
wrong way, the buyer is likely to lose out. There are a number of precautionary steps you can take when shopping for a used vehicle to
avoid this scenario. Although negotiations are important, being prepared with the right information, performing a thorough inspection, and
avoid rushing, can all translate into money saved in the end. Finding a trouble-free used car has everything to do with applying
these good research and investigative skills. Knowing how to spot potential problems and determining how reliable a used vehicle is can save you
from expensive automotive repairs.
Financing Your Vehicle
You should research your financing options before finding a used car. Compare interest rates at various financial institutions. If
you're buying from a dealership, compare its rates with the others. It will be to your advantage to get pre-approved for a loan; if you're buying
from a dealer, this keeps the financial arrangements out of the negotiating process. The dealer may even try to beat their rate, which
works to your advantage.
Do Research Before Purchasing Your Car!
Do as much research as you can on the used vehicle. Read reviews, consumer reports, ask friends for opinions, and compare options on the make
and model you're interested in. Do an internet search for indications that the particular used car make/model you are considering might be
a problem. One with an recalls or consumer complaints is a red flag. You can find information about recalls and safety-related defects at
the National Highway Traffic Safety Administration,
and information about consumer satisfaction atJD
Power & Associates.
Used Car Warranties
When buying a used car, it is best if it is newer and still under the original manufacturer's warranty. Most late model used cars
have at least three-year/36,000 mile basic warranty coverage. This means you'll get at least a year or so of coverage if you buy a used car
that is less than three years old. One point to remember is to confirm that the warranty is transferable to a new owner. Another
option is to opt for a Certified Pre-Owned (CPO) Vehicle. These are late model vehicles that have less than 50,000 miles and have been
given multipoint inspections -- with any needed service or upkeep taken care of before the used car is put on the lot. These often include
a no-cost extended warranty on major parts such as the engine and transmission
Be aware of "As-Is"
The Federal Trade Commission requires dealers to post a Buyer's Guide in every used vehicle offered for sale. This is a very important sheet
to read, it is usually attached to a window of the used car. It is required to contain certain information, including whether the vehicle is
being sold "as is" , and what percentage of repair costs the dealer is obligated to pay. If the Guide says that the vehicle is covered by a
warranty, the dealer must honor that warranty. If a sale is designated "as is," it means that the dealer makes no guarantees as to the
condition of the vehicle, so any problems that arise after you have made the purchase will be your responsibility.
Buy Only What You Need!
A car that's loaded with extra features and options can cost you much more than the same car with less equipment. Thousands of dollars are
poured into cosmetic or performance improvements in custom cars. These are something to be aware of, as they may not be worthwhile for you
and end up wasting money. Be wary of costly add-ons. Service contracts, glass etching, undercoating, and paint sealants are all unnecessary
add-ons to help the dealership maximize its profits. Don't buy them.
Call Ahead
Before you make a trip to see a car that's been advertised, call the seller for information. You want to be sure the car is still
available, and you'll want to fill in any missing information. These questions may even give an idea of the trust worthiness of the
seller. If the information you get does not match up with the vehicle, than go elsewhere.
Used Vehicle History Records
The next step is to check the used car's history records. This will help you to eliminate half of the vehicles from your list with
potential problems. Flooded or used cars in serious accidents, those with rolled back odometers, and heavily abused vehicles, can be
eliminated after simply checking the history of the used car. Get the Vehicle Identification Number (VIN), and run a CARFAX Vehicle History
report. A CARFAX report costs less than $25, and is well worth the expense.
Obtain Service Records for the Used Car
Ask to see the used car’s service records. If these are available, it's usually a good sign the car was well cared-for and written proof that
there weren't any unusual problems. If the used car records are not available, you should be suspicious. It doesn't necessarily mean the used car
is a bad car, but you have to wonder.
Inspecting the Vehicle - A Must
It is important to inspect every used car, by yourself and an independent mechanic. A low price is no bargain if the vehicle's not in
good condition. Walk around the vehicle and look at the exterior, check for rust and dents. The interior should also be looked
over thoroughly, making sure it is clean and in working order. A certified mechanic’s inspection will cost about $120 or so, but well worth
with. He may uncover any trouble spots.
Know the Value of the Used Car
You should know the value of the used car, regardless of what the seller is asking. Sources such as Kelley Blue Book provide this
information. Auto dealers have been known to play games with the different price guides. They'll show you one guide, whose prices are on
the high end of the spectrum, to indicate the cost of the cars they have for sale. Then they'll whip out another guide with lower values to tell
you what your trade-in is worth. Asking the salesman to use one book can avoid this trick.
Negotiate The Price for the Used Vehicle
Don’t rush the process, salesmen love customers in a rush, because they don’t take the time to negotiate. Many salespeople assure you that
they won't pressure you into buying, but they usually do it anyway. You should never feel that you have to make any deal immediately.
Even if the seller says the price is non-negotiable, offer less. Use price-guide data to illustrate the fairness of your offer. State
your final offer clearly, say nothing more, and see what happens. If the seller won't budge, walk away. If you head for the door, you'll
often have a deal you can live with before you reach it.
Paperwork
Once a deal is struck on your used car, be extremely careful when doing the paperwork. If you buy from a private owner, make sure there
are no registered liens against the vehicle and that the person who signs the Bill of Sale is the actual owner of the car. Make sure you
read everything, and understand it clearly.