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BUYING & SELLING USED CARS
BUYING & SELLING USED CARS MONEY SAVING TIPS
In many ways, buying a used vehicle is similar to buying a new vehicle, except used vehicles provide the opportunity for greater savings, since the “instant depreciation” experienced by new cars when they are driven off the lot is largely discounted, with these savings passed on to the buyer. Be sure to review the ideas and tips included under the “Buying New Vehicles” heading as a starting point in deciding how to buy a quality used vehicle at the lowest price, as well as finance the purchase. However, since buying a used vehicle also differs in certain respects from the purchase of a new vehicle, some additional ideas on how to most economically buy a used vehicle are noted below.
1. Finding the right vehicle. Compared to new vehicles, the makes and models available for used vehicles is almost limitless. Unless you already know the make and model you are looking for, make a list of desired vehicle characteristics (as discussed under the “Buying New Vehicles” heading) and take the list with you when you are looking for a vehicle. This will help prevent you from “buying a good deal” that ends up not meeting your needs.
a. Establish a budget for your vehicle purchase and stick to it. There is always a good deal on a nicer vehicle that will be sure to bust your budget. Resist the temptation.
b. Visit several new car dealerships that carry used vehicles, as well as dealers that only sell used vehicles. Don’t forget to visit the used car lots of the car rental companies to see what they have. See what is available that is within your budget and meets your needs. Remember, at this point, you are only at the dealer to see what is available and help you decide what make and model will meet your needs, not to purchase, no matter how good the deal is.
2. Once you have an idea of the make, model and year of the vehicles that will meet your needs and budget, do some research.
a. Look up the retail and trade-
b. Look at the classified ads in your local papers to see if any vehicles matching your description are available. Perhaps a friend or family member has a vehicle for sale. Also go to Internet sites that sell used cars (there are many) to see what is available both locally and further from home, and at what price.
c. Decide what kind of vehicle you want to buy and where it is located, and get ready to pick a specific vehicle and negotiate. Make sure to prepare a list of questions you want answered and take it with you when you go shopping for the vehicle.
3. Do a test drive of the vehicle before entering into any negotiations. If you like the vehicle, ask the following questions and get the following information about the vehicle:
a. Does the vehicle come with any warranties or is it sold “as is?” If there is a warranty, see what it covers and who repairs the vehicle under the warranty. Check to see if the vehicle is a “Certified Used Vehicle” which means the car has been thoroughly checked over and comes with a warranty from the manufacturer. Everything else being equal, a “certified” vehicle will usually cost more because of the cost of inspections, repairs and warranties required to become certified. Generally, a vehicle has to be no more than five years old to be eligible to become a “Certified Used Vehicle.” Be aware that each manufacturer’s certification program may be different. So check the terms and conditions to see what you are really getting, particularly the length of the warranty and what it covers.
b. What is the vehicle’s history including previous owners, flood, fire and accident damage, mileage, whether the engine or transmission has been rebuilt or a salvage title was ever issued for the vehicle. Ask if the odometer has ever been turned back. Consider getting a vehicle history report from CarFax.com or Experian.com/automotive to help check the vehicle’s history. Going to the National Insurance Crime Bureau web site (NICB.org) can help you determine if a vehicle was stolen and never recovered, or was damaged in a storm, etc.
c. Check what kind of fuel mileage the vehicle gets by checking the U.S. Department of Energy and the Environmental Protection Agency’s fuel economy site fueleconomy.gov.
4. Once you are comfortable with the history and condition of the car, enter into negotiations. Make sure you review the negotiating and financing tips included under the “Buying New Vehicles” heading. And make sure you understand all the costs you will be incurring with the vehicle purchase.
5. Once you have negotiated a price, but before you sign a contract to purchase the vehicle, make sure you take the vehicle to a trusted mechanic to have it checked out. This may not be possible when purchasing a used vehicle “as is” from an individual other than family or friend, but most used vehicle dealers will allow you to have an inspection done. Do not let the seller tell you they have already checked out the car and that further inspection is not necessary. For whatever reasonable repairs the mechanic feels are necessary get a quote for the cost. If you still want to buy the vehicle, tell the seller that you want the cost of repairs deducted from the agreed upon price for the vehicle.
6. Make sure you get adequate title for the vehicle and that any sales taxes on the purchase are paid by the responsible party.
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