Do today’s new car prices have you looking for a good used car? The prospect is daunting at best, but protect yourself by following some simple guidelines.
A good rule of thumb is to set aside half of your budget for the vehicle itself, and the other half for repairs, tags, and maintenance.
Spend some time deciding what you want versus what you really need in a vehicle. The size of the vehicle and fuel economy should outweigh cosmetic factors. Remember that choosing a car is usually an irrational decision for most of us.
Once you come to an understanding of what you actually need and want, further narrow the field by looking at factors like maintenance and safety records for the types of vehicles you are considering.
You can tell a lot about a car and its condition without moving it. Examine doors, windows, and trunk lid for a close fit and ease when opening and closing. Look for abnormalities in the paint that may indicate collision or body damage. Inspect the tires and the accelerator and brake pedals for uneven signs of wear.
Next, start the engine and try the electrical system – windshield wipers, lights, heater, air conditioning, and the radio. Check all lights and signals and watch out for smoke and exhaust. Also, listen to the engine for rumbling or clattering noises which may indicate bad rods or bearings.
If the car has passed thus far, the next step is to take a test drive. Complete several starts and stops, varying acceleration rates and turning at a range of speeds. Drive over rough roads and listen for loose parts and clunking sounds. If possible, have a trusted mechanic of your choice inspect the car. The extra cost may save you a lot of money and grief if major problems are discovered before you buy.
Look for water lines and see if you can detect signs of mold. A slight musty smell may mean that the car is a “rescued” vehicle from a flood, and you should avoid these purchases.
If buying from a dealership, the Federal Trade Commission Used Car Rule requires the dealer to put a window sticker on used cars that must specify:
- If the vehicle is being sold “as is” or with a warranty (and, if so, whether the warranty is full or limited);
- Which systems are covered by the warranty and the time period of the warranty
- If there’s a limited warranty, the percentage of the parts and labor that the dealer will pay for when repairs are needed.
Before you sign a contract, take your time to comprehend the entire written agreement. When you are ready to buy, shop around for the best financing plan. Compare the dealership/corporation plans with local credit union financing. Compare the annual percentage rate (APR), the required down payment and the total contract amount. If you are making a deposit, find out if it is refundable, and under what circumstances – and most importantly, make sure everything is included in the written agreement.
On a final note, make safety a major priority. Older vehicles may not be equipped with airbags, child safety seats, seat belts, anti-lock brakes or security systems. Make sure you understand newer, specific safety requirements and allow room in your budget to bring vehicle up to standards, if necessary.
