The advantages of buying one of the best used cars are tempting to the consumer. They offer an excellent value, allowing you to come out on the right end of the heavy depreciation that happens to a new model. You can buy a two- or three-year-old model for about 30 percent less than a comparable brand new one. Used cars are also cheaper to insure, since premiums are lower for theft and collision coverage.
There are also, however, disadvantages when buying used cars from someone. You can't be sure the vehicle was well maintained, and its original warranty may have expired. As a result, you could face stiff maintenance and repair bills. If you must take out a loan to buy a used car, you may pay a higher interest rate as well.
Shopping for Cars
Used cars are sold from a variety of sources. Some charge a lot and others are medium-priced or downright cheap. Among the places to look include:
- New-car dealers. Nearly all sell cars they have taken as trade-ins. The dealers tend to feature good late-model cars, many of which have come off lease and are sold with a limited warranty. You won't find very old cars or ones that may be difficult to sell. This is where you can get the best used cars, but the prices tend to be high.
- "Superstores." These are large, independent used-car dealers. Some specialize in low-pressure, one-price selling, while others bargain and haggle for the best price they can get. Either way, superstore prices tend to be high.
- Independent used-car dealers. The merchandise ranges from almost new to junkyard quality. Prices tend to be low.
- Online services. If you already know the make and model of the best used cars you want, the major online buying-and-selling sites make it easy to start a search. AutoTrader.com, Autoweb.com, cars.com, and other sites can help you find your specific model. You can also find individual dealers through portals such as Yahoo! and AltaVista. Some sites may contain out-of-date information, ad clutter, and other drawbacks and you won't be able to inspect or test drive the cars through a web site.
- Private sellers. Vehicle prices and conditions vary tremendously when buying from a private seller. It's a good idea to ask for maintenance records, and a pre-purchase inspection by a trustworthy mechanic is a must.
Before you buy, do the following:
Check the exterior of the car.
- Inspect the interior.
- Look under the car.
- Run an inspection that includes an engine-compression test or a leak-down test to check the piston rings.
- Check the car's past safety history and possible hidden problems to get the best used cars for the money. To check on safety recalls, call 800-424-9393 or go to www.nhtsa.gov. For a fee, a company called CarFax (www.carfax.com) will check a vehicle's history for hidden problems such as odometer rollback or salvage damage. This will also allow you to discover whether your prospective vehicle has been rebuilt.
By Greg Hitchcock