7 steps to follow when buying a a used car
BY: Matthew Schoeneck
With the current economic conditions Americans are buying more and more used cars. In 2007 Americans bought 41.4 million used cars and only 16.1 million new cars. In 2009 the gap is expected to grow larger, new cars sales are on the down turn and used car sales are expected to increase. This will widen the selection and lower the price for used cars. Today used car sales offer many new options that allow the buyers to get great purchase deals, options like “certified pre-owned” vehicles and the vast knowledge out there that allows for you to be informed about the vehicles safety, reliability, and pricing information. There are seven easy steps to follow when purchasing a used car:
1. How much to spend: Financial experts say it is unwise to spend more than 30% of your gross monthly income.
2. What kind of Car: Visit Edmunds.com and Kelley Blue Book’s site to gather information about the pricing of different cars.
3. Where to buy: You have two options when figuring out where to buy from, 1. The Dealer Route 2. The Private Seller Route
The Dealer Route
4. Beware of dealer tricks: Many dealers say that they will not sell a vehicle with any major issues, but beware that a vehicle may look good on the outside but under the hood is what really matters.
5. When trying to find the right price don’t talk about monthly payments: If you talk about monthly payments you may get the monthly payment you want but you may be paying more.
6. You found the right price, now you have to finance and insure the vehicle: One you agree on the price you can still haggle with the other charges on the car. Just because it is a warranty does not mean you cannot negotiate the price.
7. Through the dealer all the paper work is taken care of buy the dealer: Once you complete the process above you do not need to worry about the legal work. The Dealer will take care of the legal work of the purchase.
Private Seller Way
4. Ask the owner for the vehicle identification number and check out the cars history on Carfax or AutoCheck: Check out the history of the car before you buy it, know the condition in which you would be receiving the vehicle. Also ask the seller why they are selling the vehicle.
5. If you buy it on EBay or any auction site, no negotiation required: Once you win the auction the seller has to sell you the car at that price. There should be no nigotioniation about the price of the car.
6. Private Sales usually result in, what you see is what you get: One exception, know what warranties the car may still be under. You can save money if a repair is still under warranty.
7. Obtain the Tittle of the car and get the car registered: Know that once you purchase the car you have to take final step in order to drive the car on the road. This step car be taken car of at your local Department of Motor Vehicles.
For more detail visit: http://www.latimes.com/business/la-fi-sevensteps2mar02,1,4792510,full.story
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The gap between new and used car is tremendous, yet not surprising. In the attached article, I also noticed that used cars seem to be lasting longer. It stated “last year the average passenger vehicle in the U.S. was 9.2 years old, a record”. Also, with increasing transparency in the car market, between buyers and sellers, it makes sense to buy used over new. The vast array of resources at a buyer’s fingertips will ensure that they’re getting what they paid for.
aprilquigley - November 11, 2008 at 9:31 pm
Buying a used car definitely seems to be the better route. Not only do cars depreciate faster than anything else out there, the initial price of of ownership is also less. However, the purchase must come with a lot of research. With diligent research the buyer can also know where they can get the better deal, whether it would be through a private buyer or a certified dealer.
jasonhong1 - November 12, 2008 at 4:36 am