Shopping..

For years, financial analysts have said that buying a new car depreciates the moment you drive it off the lot and it can lose up to half of its value within the first year.  Wow, that is definitely an endorsement then for buying a used car!  In fact, used car lots are growing by leaps and bounds because more and more consumers are becoming wise to that fact.  Of course, shopping for a used car is quite a bit different from shopping for a new one.  There are a whole new host of situations to keep your eye on to ensure that you come out with a great deal.

Before setting out to look for a used car, think about what your needs are as well as how much money you are willing to spend now to purchase it as well as the probable extra maintenance and upkeep that a used car requires. Is this a second car for the family? Perhaps you have a new teenager driver who needs a set of wheels. In addition, factor in the money you will likely spend to have your own mechanic inspect the car for you as well as any carfax reports to research the history of car repairs on the vehicle.

One of the most common mistakes that used car buyers make is that they hold this ideal of the perfect car in their head.  When they find that “perfect car” for sale, they will jump at the chance to buy it only to be disappointed later because certain problems were not disclosed to them.  The smart thing for used car buyers to do is to get their prospective used car inspected by their own mechanic BEFORE buying it or signing a contract to purchase.  If you wait to get the car inspected afterwards, you are liable for anything that is wrong with it.

As mentioned before, a carfax report is important to have BEFORE purchasing the used car you have your eye on.  It might be a smart move to invest in a short carfax membership when shopping for a used vehicle so that you can pull a report on multiple cars as you find them rather than paying for a “per report” fee.  It is an investment that would pay for itself with a reliable used car.

Once you have identified a few used cars in your shopping expedition, head to your library or nearest internet connection to research the probable resale value of the car as well as how much a used car would go for in your region.  From there, you will have an idea of the car’s value and can determine what your probably monthly payment could be.  Whatever you do, do not announce to a used car dealership what you can afford per month.  They will likely steer you to cars that you are not interested in and would negate your negotiating power.

You will find quite a few used cars being sold by private parties either in the newspaper or even parked in someone’s driveway.  Now, you will likely get a much better deal dealing with an individual, but keep in mind that you would not get the benefits of a possible extended warranty that a used car dealership could provide you.  It all boils down to what you are comfortable with.

The bottom line when shopping for a used car is that if something is priced too good to be true, then it probably is.  There are also always new scams going around so be sure to pull that carfax report and carefully inspect the paperwork before signing it.  Sometimes, unscrupulous dealers or individuals will change the terms on the paperwork without telling you.  Then you would not find out until something happens to the car. 

This entry was posted on Thursday, July 5th, 2007 at 5:56 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.