Used cars are hot. Escalating new car prices have made quality used cars very attractive alternatives, and the increased popularity of leasing has put lots of lease returns on the market. Many lease returns and premium quality trade-ins are being marketed through special manufacturer guaranteed "pre-owned" programs. These cars are extensively inspected and represent the cream of the used car crop. All these high quality used cars on the market make this an excellent time to buy, but you still need to be an alert consumer. The following used car buying tips will hopefully ease your quest.
1. LOW MILEAGE. "Low miles" are magic words in the used car business. People can beat up low mileage cars, but generally, lower mileage means less use. Given the choice between two virtually identical cars with dissimilar mileage (even if there's no mechanical or cosmetic difference), pick the lower mileage car. Lower mileage will be a benefit when you sell, and the lower mileage can provide more warranty eligibility.
2. LOADED CARS. When purchasing a new car, the difference between modestly equipped and loaded can be several thousand dollars. As vehicles age, this price gap narrows. Loaded used cars cost more, but those extra dollars deliver desirable options for much less than their original cost. Well- optioned, deluxe models are easier to resell than stripped, base models of the same vehicle.
3. POPULAR MODELS AND COLORS. You obviously can't custom order a used car, so compromises are part of the deal. You should always buy a car that you like, but the sooner you plan to resell, the more you should consider popularity factors. Well- equipped, high-demand cars in popular colors are always the easiest to resell.
4. PREVIOUS OWNERS. Investigate the number of previous owners. A car that is only a couple of years old should be a one-owner affair. Even a five-year-old car shouldn't, ideally, have more than two owners. A car with multiple owners is a problem car warning sign. The dealership should be able to provide the car's history. Reputable dealerships can put you in contact with the former owner. There shouldn't be anything to hide on a top-quality used car. Our favorite question for previous owners is: why did you sell the car?
5. DEPRECIATION VS. AGE. A great thing about late-model used cars is that the previous owner has already absorbed a big chunk of the vehicle's depreciation. That first year's depreciation can be substantial. You want to buy just before the depreciation curve levels off and while the car is as new as possible. The convergence of these factors varies by car, but it generally falls in the two-to-four year old range. Study prices versus vehicle age to determine that ideal time.
6. LEASE AND RENTAL CARS. There are many excellent two-to-four year old lease return cars. They can be fine cars that were simply traded for another lease. Cars driven by an individual for personal use are our first choice. Company cars that were used primarily by one person are also fine. We don't like motor pool cars (e.g. utility company vehicles) with multiple drivers. A single driver is more conscientious. Many used car guides advocate ex-rental cars. Even though maintenance schedules are excellent, we've seen too many thoughtless people abuse rental cars. We'd pass on rental cars, generally.
7. EXTENDED WARRANTIES. The remainder of the original manufacturer's warranty can usually be transferred. If you can get an extended warranty over and above the factory one (at a fair price) you'll have added protection against potential repairs. However, carefully check the fine print regarding what's covered and watch out for excessive deductibles. And remember, an extended warranty is a great bargaining tool--ask the dealership to throw in the warranty to clinch the deal. That's good for both parties since dealers pay far less for warranties than their marketable value.
8. FIXING PROBLEMS. If you or your mechanic discover any mechanical or cosmetic problems get them fixed before you pay for the car. Your leverage diminishes greatly after the transaction. Also, the dealer can make repairs for much less than you can.
9. WRITTEN AGREEMENTS. Everything regarding price, terms, repairs, and/or trade-ins should be clearly written into the sales agreement. Verbal promises can be very difficult to enforce--get it all in writing.
10. CARS TO AVOID. Avoid problem cars. Without being over-simplistic, cars that we don't recommend include: incredibly low-priced cars from recent natural disaster (floods, hurricanes, etc.) locales; repaired insurance "totals" (most titles identify salvaged wrecks); excessive mileage cars (more than 10-to-15 thousand miles per year); cars whose manufacturer has retreated from the U.S. market; modified cars; and cars from bankruptcy or law enforcement seizures.
THANKING U
