If you are looking to save money on a car, a used car is your best option. Used cars offer buyers an exceptional value because cars will as lose as much as 30 to 40 percent of their value within the first three years. Used cars will also save you money on insurance, taxes and registration fees.
However, you must still be careful when purchasing a used car. You must make sure the car is accident free, has real mileage, and was properly maintained. There may also be some costly hidden problems like a bad transmission or engine problems that did not show up during a routine test drive. If you are purchasing from a dealership, the car will likely come with a warranty or service plan, or will be a certified pre-owned vehicle.
You should be protected from these kinds of problems as most dealers do thorough diagnostics on used cars. Where you have to be really careful is when you are purchasing from a private owner. You should be sure to have a certified mechanic do a thorough diagnostics on the car before purchasing. Doing so can save you money down the road.
Things to Do
- First and foremost you should always look at the number of miles a used car has. You can find this on the car's odometer, which is located on the driver's side dashboard just behind the steering wheel. You want to make sure that miles are in line with the industry average. For example, the automobile industry considers 12,000 miles per year normal. Thus, if you are looking to purchase a car that is three-years old, it's reasonable for the car to have 36,000 miles on it. If a three-year old car has 50,000 miles that is considered high. But if a three-year old car has 25,000 miles on it that is considered low. The more miles a car has, chances are you will have to pay more for repairs. As a rule of thumb, most cars will require the most significant repairs once they exceed 75, 000 to 100,000 miles.
- You should run a vehicle history report to get the full history on the car. You can go to www.autocheck.com to get a full vehicle history report. This report will include:
- If the car was ever salvaged, stolen or recalled.
- Names and number of previous owner(s).
- If the car has failed any inspections.
- If the odometer reading was reported as bring fraudulent.
- Look for cars that have high re-sale values. This is an indication that the car was built well. Some cars are less reliable than others; therefore, you want to do your due diligence to ensure you are not just getting a good price, but a good car too. Websites like www.edmunds.com and www.kbb.com can provide you adequate information on cars that hold their value and tend to be overall more reliable than other cars.
- Make sure that the car was not recalled. Often, manufacturers recall bad parts or whole cars. When buying a used car, it's important to find this out. You can learn if the car has been recalled by visiting the Highway Traffic Safety Administration's Auto Safety website: www.nhtsa.dot.gov.
- Make sure the car's vehicle identification number (VIN) matches what is on the title. The VIN is 17 characters long. Take your time and confirm they match.
Remember, most used cars are sold "as is" even when purchasing from dealers. Therefore, take your time and follow the steps listed above. This way you will save time and money by not having to deal with purchasing a lemon. Do your homework can also help prevent buyer's remorse.