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| Used car buying guide: Buying a used car |
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Please note that all of this is only our personal opinion and We don't perceive that We are absolutely right. If you have any questions or suggestions, E-mail us.
Fast Auto Sales Staff.
Used car or new
Buying a used car you can save a lot of money. You can buy a three - four year old car for only about 60% of the price of a new vehicle and still have several years of trouble-free driving. Plus, you can buy a loaded version with all the bells and whistles that you might not be able to afford when buying a new car.
But...
When you buy a used car you never know, a car may have been in an accident or has bad transmission or any other hidden problem, or was not properly maintained.
Used cars need to be inspected very carefully prior to purchase. If you are not sure what to look for when buying a used car, it's a good idea to ask someone knowledgeable to check the car for you.
Another drawback - you will spend a lot of time before you find the "perfect" vehicle because of the large number of "lemons" in the used car market.
Therefore, a used car is worth buying only knowing for sure that it's in good condition - no accidents, no transmission problems, no bad history records, etc. Otherwise, you're buying a lottery ticket.
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What kind of a used car can I afford?
In general, We'd recommend to look not for the cheapest car available, but for a well-maintaned vehicle for a reasonable price. Which means if you're choosing, for example, between one which is a lot cheaper but has been in accidents, poorly maintained, etc. and another one which is a one owner car, with all maintenance records, clean history, in excellent condition, We'd certainly recommend the second one. Why? - because it's more safe, because it may save your money on repair, and maintenance.
If roughly:
- At least $8000 - 12000 USD ($12,000 - 18,000 Canadian) needed to buy 3-4 year old, decent car (just a regular car, not the luxury one) at a new car dealership. They always have a number of trade-in one-owner vehicles that were sold new and serviced at the same dealership. Sometimes you may find such a car with a private owner. Usually such a car may last for another few years relatively trouble-free.
- For $4000 - 5000 USD (6,000 - 7,500 Canadian) you may be able to find 6 - 9 year old used car with relatively high mileage which still might be in a good shape. However, it may take a lot more time to find a used car in good condition within this price range. Usually independent used car dealers sell cars in this price range.
- At least $1000 - 2000 USD (1,500 - 3,000 Canadian) needed to buy something that can serve as simple transportation. Most likely it may be something with high mileage sold by a private owner. Dealers usually don't want to waste time with these types of cars. However, it's very hard to find something worthy for this price range, and We wouldn't recommend buying a used car below this price range - you will spend much more money to keep it driveable.
If you want to know what kind of a vehicle you can afford for you're money, search online auto websites using the price limit.
Don't forget that beside the sticker price you may need to pay extra for taxes, registration fee, etc.
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Choosing the car
You won't get a good deal if you just browse from dealer to dealer without knowing what kind of car you are looking for. First, you need to decide what you want. If you need simple transportation to drive to work and back - a small sedan will be fine.
You want it to be cheap on gas? - it has to have a small engine (don't expect a V6 or V8 engine to be economical)
Icy roads are common in your area? - then you need a car with ABS
You use the car for towing? - you need a more powerful engine And so on.
Once you know what you want, check the market, what's available with options you need and for the price you can afford
After this you will have only a few models to choose from.
Get the Insurance quote for each model - it can vary. Compare reliability ratings, read reviews.
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What mileage is OK for a used car
Choosing between different cars, don't pay too much attention to the mileage. Look at the vehicle itself. If one car has higher mileage, but is in nice shape, well maintained and another one has lower mileage but something seems to be wrong with it, pick the first one.
In general We would not recommend buying a car with very high mileage (250,000km or 150,000 miles and higher). Also a lot depends on the vehicle model - some cars last forever, others start causing constant problems after the first few years. Lack of proper maintenance is another factor that may significantly cut the vehicle life span. You miss your oil change and drive, say, 15,000 km instead of 6,000 km without changing the oil and your car will start having problems a lot sooner than you think. Plus, be aware, it's illegal, but sometimes the odometer may be simply rolled back.
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How old is "too old"?
We would not recommend buying an old car even at "bargain" price, no matter how many new parts you put into it, it will still be an old car that will need more and more repair later. Simply scratch out from your list anything older than ten - twelve years. Perfect choice will be three - five years old car because the price is greatly reduced and you will still have a few trouble-free years.
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Where to look for a car?
A best buy is a one owner car that has been very well maintained (preferably at the dealership) and never had accidents or any other major problems. Most likely you'll be able to find such a car sold privately by the original owner or at a new car dealership where it was traded in. The price for a used car is usually higher at a new car dealership, but more chances to find a good car, plus they may have all the service records.
Independent used car dealers sell cars a bit cheaper, but there's less of a chance to find a well maintained car in good condition.
Checking used car sales websites on the Internet is the most convenient way to search for a car because you can search using the price limit, year, model, etc.
Quite often you can find a very good car for a reasonable price from a private individual, but usually those cars are sold right away. The Internet allows you to catch all newly advertised deals the same day.
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Making phonecalls
What you may ask calling the private owner:
- General things like mileage, color, transmission, A/C, airbags, ABS or any other options that may be of interest.
The car, for example, may not have an A/C which is mandatory for you or be a two-door when you need four-door
- Who is the owner, how long does he/ she own the car and how many owners were there.
Answers like 'This is a friend of mine's car' or 'I bought it a couple months ago' may indicate something suspicious. You need to deal with the actual vehicle owner and he/she has to sign the bill of sale. There are many people who are in the car buying and selling business without a dealer's license (curbsiders), it's not recommended to buy a car from them.
Has the car had any accidents or major repairs done, where the car has been serviced and are there any service records available?
- We wouldn't recommend buying a car after an accident or after major repair was done (e.g. engine or transmission was rebuilt)
Is the car driveable now? Does it have any problems or concerns that need to be solved? -
The car may not have valid plates or insurance - so you won't be able to test-drive it. The tires may need to be changed or the battery is very weak, or the windshield is cracked, etc.
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Legal aspects
Many questions may come up when buying a used car like how to transfer the ownership, how to write the bill of sale, how to register the car from another state, what papers are required to register the vehicle, owner's and buyer's responsibilities, etc.
Because each state or province may have different laws and requirements, the best way is to call your local vehicle registration (Department of Motor Vehicle) or legal authorities. You may be able to find a lot of such information on an appropriate website.
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Price negotiation
Sometimes, using a proper negotiation technique you can get a reasonable discount. Here are a few tips:
- Start negotiating from the beginning
Try to get a discount the first time you phone about the car - they ask 15,000 - ask if it's worth it for you to come if you're limited by 14500? If they agree, ask the name of the person and write it down beside the given price.
- Negotiate the total price
Dealers always like to add something on top of the sticker price - ask for the total price "on the road" and use it for negotiation
- Make a lower offer
They ask 15,000 - offer 13,000. If the salesperson believes you will really buy a car, he/she will offer a lower price, and maybe you will get the car for 13,800 or so.
- Nothing works better than competition
Say, you have two cars of interest on the list, show it to the sales person saying you will buy a car from whoever gives you a better price. For example, the sales person will give you a $500 discount - phone another dealer from your list and ask them if they can match it.
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What to look for in a used car
Check a used car history report.
- it does not give you 100% warranty that the car is OK, but may save you some money if it will show you some bad records like the car was written off after an accident or has the odometer rolled back.
If it's possible, ask someone knowledgeable to check the car you want to buy, it may save your money.
If you want to check the car by yourself, here are few tips:
- Take your time, test drive the car as long as you can.
some problems come up only when the car engine reaches normal temperature, other problems you may catch only driving on a highway, etc.
- If you have any hesitation about the car - avoid it.
the engine is too noisy or works roughly, transmission shifts harshly, some work needs to be done, something seems to be wrong with the papers, etc. - shop around some more.
- NEVER! buy a car after a serious accident
You wouldn't believe how many possible problems may arise later as a result of an accident.
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