|
More choices in used cars
|
 |
June 14, 1999: 9:59 a.m. ET
Preparation can help buyers avoid the pitfalls, benefit from lower prices
By Staff Writer Nicole Jacoby
|
NEW YORK (CNNfn) - Worries about fast-talking dealers, jacked-up prices and potential lemons can leave many prospective used car buyers dead in their tracks before they even set foot on a lot.
But new resources have made the process somewhat simpler in recent years. And at least one industry watcher says there's no better time to buy a used car.
"The average price of a new car has crept up to about $23,000, but you can get a decent used car for between $10,000 and $15,000," said Grant Whitmore, managing editor of Edmund's, an online automobile buying guide.
And lower costs don't necessarily mean fewer options, says Whitmore.
"The choices for buying a used car are much greater than buying a new car. People can be as picky and as demanding when buying a used car as a new one," he said.
Start your engines…
Before you get started, you should have a good idea of what type of vehicle you are looking for.
Consider how you will use the car, how long you plan on keeping it, and your budget for the purchase, including insurance, operation, maintenance and repair costs.
If you have settled on a certain model, you should check on its reliability record. Auto and consumer magazines and books, such as Consumer Reports, can be helpful in pointing out potential repair problems and trouble spots.
To find out if a certain vehicle has ever been recalled for safety defects, call the National Highway Traffic Safety Administration's toll-free hotline at (800) 424-9393.
Assessing value
The Kelly Blue Book, available online, is one of the best resources for pricing out a car. The Web site lists both wholesale and retail prices for most cars and takes into account various levels of condition.
But the Blue Book should only act as a guide. Demand for cars can vary quite dramatically by area and may affect the price you pay for your car of choice.
"The used car market is a lot more regional than people realize," said Jack Nerad, author of "The Complete Idiot's Guide to Buying or Leasing a Car." Check with listings in your local paper to get an idea of what certain makes and models should cost.
Edmund's Automobile Buying Guide also offers a wide range of information for prospective car buyers.
'Condition, condition, condition!'
The price of a used car will be determined by some concrete characteristics, such as make, model and age, as well as by some subjective factors.
"With real estate, it's location, location, location," Nerad said. "With a car, it's condition, condition, condition."
One of the best ways to assess condition is by checking the car's mileage. Excessive mileage may indicate undue wear, even if the car is not that old.
But evaluating a car's condition strictly by mileage can be problematic, as many car owners are known to roll back the odometer on their cars before selling them.
"Unfortunately, it happens a lot more than people realize," said Nared. Signs of odometer tampering include white lines between the numbers that do not line up or vibration of the 1/10 mile numbers while the car is moving.
To ensure the car has not been "clocked," look at the vehicle's overall wear and tear. Is the driver's seat frayed? Is the interior dirty? Are various knobs loose?
These types of questions may also yield clues to the overall condition of the car.
"If the basic stuff isn't taken care of, you can pretty well assume that a lot has not been taken care of," Nared said.
Another factor to watch for includes smell --mustiness may indicate the car was damaged in a flood or that rain leaks inside the car.
All in the timing
Many cars, especially luxury models, lose up to half their value in as little as two years. By timing your purchase right, you might be able to cash in on a car's depreciation.
You'll get the best value if you purchase a vehicle that is between two and three years old, says Edmund's Whitmore.
"You'll get a car without many miles on it that is more likely to have a complete service history," Whitmore said.
On the flip side, cars that are five, six or seven years old do not differ much in price, regardless of mileage and condition.
Watching for red flags
The major drawback of buying a used car is not knowing where it's been or how it's been treated prior to your possession.
"You could end up paying for somebody else's abuse," Whitmore said.
While there is no surefire way of verifying how a given car was treated, you can take certain precautions.
For one, have a mechanic you trust look at the car; $50 or $100 is a small price to pay to find out if a car is a dud.
Regardless of who you buy your car from, make sure you examine the seller's title and registration for the vehicle before agreeing to buy it. These documents will reveal if the car has a "salvage" title. A vehicle with a salvage title has been previously declared a "total loss" by an insurer and should be purchased with caution because of the possibility of structural damage that could affect the safety of the vehicle. Some lending institutions will not finance a salvage vehicle.
You can also use the Edmund's Web site to find out if a car is a lemon -- a vehicle that has had repeated problems, was repurchased by the manufacturer and reported to the state.
Finally, the Department of Motor Vehicles should be able to provide you with a printed history of the vehicle's ownership.
Where to buy
Whether you choose to buy a used car from a dealership or from a private owner depends largely on your personal preference.
Buying a car from a private owner can be more time-consuming, given the effort needed to browse through newspaper and flyer ads. But it often can result in a well-maintained car for a lower price than you would find at a dealer. One of the drawbacks of buying a car from a private owner is that warranty and repair services are not available.
If you buy a car from a private owner, ask for the car's maintenance and repair records, and if the seller is the first owner, records for the original purchase. Also verify the identity of the person selling the car with the person listed on the car's title or registration.
A used car bought from a new car dealership will come with a more guarantees, but the price will likely reflect that.
New car dealers acquire most of their used cars through trade-in deals. These cars are more likely to come with a limited warranty under which the dealer is obliged to fix problems.
A used car dealer generally sells vehicles that have seen a bit more use and abuse than those on new car dealers' lots You may pay less but the car is less likely to have received needed repairs. Used car dealers may also offer limited warranties.
But buying from a used car dealership has drawbacks, says Whitmore. Warranties and service agreements at these sometimes fly-by-night retailers are often not valid at other locations. So if the dealership folds or you move, you could be left high and dry.
A lower-pressure alternative to these dealerships are the used car superstores that have sprung up in recent years, such as CarMax and AutoNation. These stores have a no-haggle policy and offer a wide selection of vehicles, some with warranties.
While Whitmore concedes you may not get as low a price at a superstore as a good negotiator would receive at a regular dealership, he adds: "Most of us are not good negotiators to begin with, especially when it comes to buying a car."
If you are considering buying from a dealer, check out the dealer's reputation and reliability first. Ask the dealer for the names and numbers of several previous customers, and contact them to find out how they were treated after the sale and whether the car was reliable. Also call the Better Business Bureau in your locale for any complaints filed against the dealer.
Buying certified
Another option for those in the market for a used car is a certified previously-owned vehicle.
The availability of these cars has been on the rise, as an increasing number of automobile companies attempt to rid themselves of an excess of previously-leased cars. The trend, which started in the luxury car market, has been a boon for consumers, according to industry watchers.
To make these cars more palatable to the average buyer, companies do extensive quality checks and usually offer some sort of warranty and service contract, meaning customers can worry less about potential repairs or breakdowns. These cars typically also have low mileage.
Although you may pay slightly more for a certified vehicle than for other types of used cars, it's a small price to pay, says Whitmore.
"The savings of buying a car another way don't outweigh the benefits of a certified car," he said.
|
|
|
|
|
 |
|
