The only valid
reason for buying a used car is to save money. Someone else has
already taken the initial depreciation. Just be sure you don't end
up spending more on maintenance costs than you save by getting a
used car in the first place.
A low mileage used car that is 1 to 5 years old can be a great
value. As soon as you drive a new car off the lot it loses a chunk
of value. A car that has 5,000 miles is virtually just as good as
one that has 5 miles, but it can be bought for much less.
Cars with higher mileage are even better values as long as you
don't have to spend a lot of money on maintenance and repairs. If
you're shopping for a used car the lower mileage, the better. But
try to keep it under 80,000 miles. After that you start running into
high
repair costs.
Some things that go wrong with cars over 80,000 miles.
-
Transmission problems
-
Axles wear out
-
Hoses & belts go bad
-
Muffler & exhaust burn out
-
Suspension parts wear out & cause premature tire wear
-
Electrical components fail
Not every car starts to have problems at 80,000 miles, but this
is where you typically see problems develop. Some cars, like Honda
and Toyota, do better than most.
If you buy a used car try to get one with a warranty. Newer cars
will be covered by the manufacturer's warranty, but these cars will
cost you more. One reason an older costs less is because the
warranty has expired, but you can always get an extended warranty to
cover any needed repairs.
Just be sure the car justifies the price you have to pay for it.
If there is not a huge difference you may be better off with a new
car.
Before you buy a used car be sure to check the cars book value.
There is no sticker price on used cars, like there is on new.
Basically, dealers are free to charge whatever they want. That
doesn't mean you have to pay it. Here are some steps you can take to
make sure you are getting a good deal on a used car.
How to get a low price on a used car.
-
First, check the cars book value online at sites like Edmunds and
Kelley Blue Book.
-
Compare the price for a used car to the price of a similar new
car.
-
Check prices at competing dealers.
-
See what similar cars have sold for on eBay.
You can look up the value of any used car on the web. Kelley Blue
Book will give you trade in, private party and retail value.
Trade in value is what you can expect a dealer to give you
when buying a new car.
Private party value is what you would expect to pay for
the car if busing from a private individual.
Retail value is the dealer's recommended asking price, and
not what you should actually pay for the car. Aim for a price lower
than retail, and closer to private party, or even trade in.
Retail value is higher than private party value because a
retailer is expected to recondition a car and make any needed
repairs before offering it for sale. If you buy from a dealer make
sure the car has been serviced, and any needed repairs have been
performed.
Always compare prices for any used car to a similar new one.
Especially if you are considering a car that is 2 years old or
newer.
Most people perceive that it costs a lot more to buy a new car,
and used car salespeople thrive on this perception. Since there is
no MSRP sticker in the window, a used car salesperson can quote
whatever price they like. You may be quoted a price for a used car
that is as much, or more than a new one. Always compare prices. You
can get a price quote right now at Edmunds.
By checking prices at competing dealers you will quickly find out
what the going market price is. You may be surprised that dealer B
will offer a price $3,000 less than dealer A.
You may not want to buy a car on eBay, but is a great tool to see
what the market is. You can see what cars are actually being sold
for, and not just what someone's asking price is. Tip: do an
Advanced Search and take a look at completed listings.
The only reason for buying a used car is to save money. Just make
sure you actually save when you buy one.
When you buy a car you sign a legal, enforceable contract. It's
not like Wal Mart; you can't return it and get your money back. Do
your research and choose carefully to avoid buyer's remorse.
If you find out the next day you could have bought for $2,000
less -- it's too late. Do your research and compare prices up front.
