Most consumers want to know how to buy the car of their choice at the best possible price. With the average price of a new carincreasing every year, it is no surprise that the fastest growing sector of the auto industry is the used car market. More and more, used carsare becoming better values. A new car depreciates quickly in the first few years. Buying a car that is just a few years old can save thousands ofdollars over the price of a new model.
There are many advantages to choosing used over new. A well-maintained car should remain dependable for at least 10 years and 100,000 miles.Surveys have shown that, on the average, a person trades in or sells a car when it is only 4 1/2 years old with just 41,000 miles on it. Thisresults in a lot of good cars out there with ample life left in them. If you are looking for a new model, buying a used car of the same style,only a couple of years old can really be a good deal.
A used vehicle is a major purchase and calls for comparison shopping for price and value to find the best deal. There are manysources available in the Miami area. A franchised dealer, one who sells both new and used cars, is a promising source. The dealer saves thelate-model trade-ins for resale, and usually gives them a detailed inspection. The less desirable vehicles are often auctioned or sent towholesalers. Franchised dealers also have repair facilities, and they are likely to provide a warranty with the vehicle. Another consideration isto buy from a dealer who handles the specific brand of vehicle that you are interested in, such as a Dodge Chrysler dealership. Expect a fullservice department and a well stocked supply of parts.
Private individuals are another source to be look at when purchasing a used vehicle. However, a private sale may not always offer a betterdeal. Buyers may end up overpaying for a car because they somehow believe they are getting a better deal from a private party. When obtaining avehicle from a private sale, there are no warranties of any kind. In addition, the buyers will have to provide their own financing or pay cash.One benefit is that the prospective buyer can meet the seller face to face and query about the vehicle. Insist on obtaining the car's maintenancerecords and records of purchase. Make sure to always have a mechanic inspect the car before a final deal is made.
Type of Car - Decide on the year, make, model and options you are considering. Narrow your choices of as muchas possible. What purpose will the car serve as? Do you need a family sized vehicle or an economy model for a student? Also pay attention tothings such a visibility, comfort, and safety features. Once you have decided on a specific model, it is a good idea to have other choices inmind as a backup. It is best to enter a dealership knowing what you want, as this will make the whole process much easier.
Decide how much you can afford - Set yourself a limit of how much money you want to pay for the car. Be firm on your price range, as it mightbe difficult to resist the urge to buy something more expensive. Don't be fooled by 'low' monthly payments. Don't rush into buying an automobile,as you may realize later that you cannot afford to pay for it. What type of used car will fit into your price range? Here is a look at someprices:
$10,000-$18,000 - This is the average amount of money one would need to spend to get a reliable car that is 3 to 4 years old. If you werelooking for a Jeep in this price range, you could find one that was traded in, one-owner, and was sold and serviced at the same Jeep dealership.You may also be able to find such a car from a private owner. Usually a car in this price range may last for another few years somewhattrouble-free if properly maintained.
$4000-$9000 - You may be able to find a 6 to 9 year old car with fairly high mileage, but still in good shape. Keep in mind; it may take a lotmore time to find a used car in good condition in this price range. Typically, independent used car dealers sell cars within this pricerange.
$900-$2000- you can buy something that functions as simple transportation to get from point to point. More than likely it will be a car withhigh mileage and sold by a private owner. Dealers usually don't spend time selling vehicles in this price range. If you do buy a car in thisprice range, be prepared to spend much more money to keep it running.
Pricing the Car - An assortment of price guides are used by lenders, dealers and individuals to determine the value of usedcars. Check the N.A.D.A. Official Used Car Guide, Southeastern Edition, for the book value on your vehicle. You can also check the Kelley BlueBook online. Check the classified ads in the local newspaper to determine what advertisers in your area are asking for. Don't look for cheapestcar. When it comes to used cars, finding a best deal does not mean the cheapest one. Your aim should be to look for a car in decent condition forreasonable price. If you are deciding between a cheap car that might have had an accident in the past, was poorly maintained, or needs somerepair, and a more expensive one that is in prime, working condition, choose the more expensive one. You will, in most cases, save on parts andrepairs and will have fewer troubles driving it. You are much better off with a car that you are happy with than one that you saved a few dollarson.
Research the car - Read reviews, consumer reports, ask friends, compare options, and gather gas consumption data on the makeand model you're interested in. Be aware of any safety recalls on the car you are interested in. A great way to learn about the history is to runa CARFAX check on the vehicle.
Financing/Insurance - Check with local banks for financing so that you can make comparisons with dealer financing. Be surethe determined amount is for the specific make and model you are looking at. Check with your insurance company for a quote on the vehicle youwant to purchase. Can you afford to pay insurance and car payments?
Once you have selected a specific vehicle, it is important to look over every aspect of it. This includes checking the outsideand interior of the car, taking it for a test drive, and having a certified mechanic check the engine. Here are some guidelines for theinspection:
Outside of Car - Do not perform your inspections in the dark or in the rain, as these conditions can hide nicks andscratches, as well as making worn paint look slick. Take a general look around the outside of the car. Examine all sides of the car from adistance. Look for ripples, waves, and mismatched colors. Finding any of these may indicate that body work has been done. Look for dents or rustaround the bottom of the doors and fenders. Bubbles in the paint indicate rust underneath. Also look under the vehicle for rust as well. If therust has gone through the metal, you could be looking at major repairs.
Open and close the doors, hood, and trunk. They should fit and be easy to open and close without slamming, or sticking. Check the tires asthey should be in decent shape without sidewall cracks. Uneven tire wear indicates improper wheel alignment, old shocks or worn front endcomponents. Also check the inside of the tires for brake fluid leakage, as this may indicate leaking wheel cylinders.
See if the car appears level. If one corner seems lower than the others, it suggests a broken spring or other chassis or suspension problem.Check the shocks by pushing down on each corner of the car and letting go. The car should bounce upward only once and then settle back to itsoriginal position. If the car bounces several times, new struts may be needed.
Inside of the Car - The interior can give you a good idea of the overall condition and how well the entire car has beenmaintained. A very common practice is to have the car detailed to increase its appeal. Usually this includes a thorough cleaning inside and out,waxing and the repair of minor cosmetic items. Simply be aware that this can hide abuse or wear and tear.
Check the windows to see if they open and close easily. Manual windows should crank smoothly. Power windows should not falter. All glassshould be free from scratches or cracks.
Check the condition of the seats, belts and carpeting. The upholstery should be clean with no large rips or cracks. Seat belts should be ingood shape with no rips or tears. Look at the foot pedals. They should work smoothly without strange noises or binding. Start the engine andcheck the warning lights and gauges to make sure they work.
Test Drive - Be sure to drive the car under a variety of conditions, such as hills, highways and in stop-and-go traffic. Thisshould be a fairly extensive drive, not just a drive around the block.
When idling, the engine should be smooth and quiet. After putting the car in neutral, press the gas pedal to see if the engine respondswithout hesitation and then returns to normal idle. When you press down on the brake pedal it should go down only an inch or two and should feelfirm, not spongy. As the engine warms up, listen for any noises such as knocks and rattles.
Once on the road, the transmission should shift smoothly. Drive on a flat, smooth road and lift your hands from the wheel. The car shouldtrack straight and be stable without vibration. If the car pulls in either direction, a front end alignment may be necessary. Next, accelerate to45 miles per hour. If the front end shakes or vibrates, the tires probably need balancing. Drive quickly over a rough road and listen for anyloud rattles. If the car bounces or bangs over small bumps, the struts may be worn. To test engine response, accelerate hard on an empty road.The car should respond immediately. Back off and hit the gas again. There should be no hesitation or smoke from the car. You may want to find asteep hill to check the engine's power. If there is a significant loss in power while climbing, the car may need an overhaul or a tune-up
To test the brakes, make sure there are no cars behind you, once you reach 40 mph, step hard on the brake pedal, but do not lock the wheels.The brakes should grab evenly and the car should slow down in a straight line. A grinding noise indicates badly worn pads. While you're on thehill, test out the emergency brake to make sure that it holds.
Mechanical Check - If you have checked out the car thoroughly and are still interested in purchasing it, you should take itto a trusted mechanic or auto diagnostic service as a last step. One good place to have the car inspected is at a dealership that sells andservices the same make of car. The mechanics there will be knowledgeable about the make and will know what problems to look for. If the mechanicreports any problems, ask for an approximate quote of the repair. If major issues are found, you may want to search for another car.
You will be charged $50 or so for the mechanic's service, but it is well worth it. The money spent on checking the car out may save you a lotmore money in the long run. After a close look by a professional, a prospective automobile may not turn out to be as mechanically good as itappears.
All Florida dealers are required by Federal law to post a "buyers guide" in the window of each vehicle for sale. The buyersguide notifies the buyer that there is a warranty or that the vehicle is being sold "AS-IS" with no warranty of any kind. In the case of an"AS-IS" sale, once you drive the vehicle from the dealership, the cost of repairs is your responsibility. There is no Lemon Law for used cars inFlorida.
If you decide to get a warranty, know exactly what it covers; be sure to read the fine print. Extended warranties are offered by manufacturersto cover major drive train parts (engine, transaxle, transmission, etc.) at an extra cost.
Ask many questions before purchasing your warranty. Are all the parts covered? Is there a co-payment? Can service be performed at a repairshop of choice, or only by certified repair shops designated in the policy?
Extended Warranties - Dealerships often offer car buyers service contracts, also known as "extended warranties." Servicecontracts are purchased at additional cost. They generally cover repairs for a longer period than the manufacturer's drive train warranties, andare regulated in Florida. For information on service contracts, check with the Florida Department of Insurance at 1-800-342-2762.
The mechanical inspection is an important way of checking the safety and reliability of the car. This may be the most importantstep in the used-car buying process. If the dealer or owner refuses to let you take the car to a mechanic, do not buy the vehicle! For a smallfee the National Automobile Dealer's Association, (800) 274-2277, will run a title search on a vehicle. The search will tell you in which citiesand states the vehicle has been registered. It will also tell you if a particular vehicle has been salvaged, flood damaged, recalled or had theodometer rolled back.
Odometer Fraud - Is the physical condition of the car consistent with the mileage on the odometer? Check the physicalcondition of the carpet, brake pedal, seats and any other items that might show wear. Look for oil stickers, service records or warranty cardsshowing the mileage of the vehicle. Look for scratches on the odometer/dashboard, misaligned digits, or an odometer that fits loosely. Any ofthese may indicate odometer tampering. It is a violation for anyone to sell a vehicle without providing a written statement of the actual mileageat the time of transfer. Exemptions from odometer disclosure includes vehicles which are ten years or older. If you are suspicious that theodometer has been rolled back on a vehicle you are interested in, contact the DMV. For used cars in Florida you may contact the FloridaDepartment of Highway Safety and Motor Vehicles.
Understand your contract - Be sure to know all the terms of your contract. Under no circumstances should you sign any blankforms. Obtain and file copies of all signed paperwork involved in the sale. In many cases, once a deposit is made, if the customer changeshis/her mind and decides not to purchase the vehicle, the decision can result in a lost deposit. Make sure that your contract specifies arefundable deposit. Many contracts are written pending credit application. Deposits are made along with credit application fees. Trade-in valueis given and the vehicle is purchased and driven home. If the application is denied it may be processed with another agency through thedealership, but at a higher interest rate. Keeping this in mind, verify that you get agreed interest rate and understand the terms if deniedcredit.
Recognize any extra fees. Dealers can charge fees paid for tax, tag and title transfer. Most often these extra fees are not included in thecontract. Charges for processing the paperwork involved in a sale are known as conveyance fees. If there are fees, they must be separatelydisclosed. Some dealers may try to include an advertising surcharge after the offer has been accepted. This charge represents the dealer'sparticipation in national or regional advertising, but is already built into the base price of the vehicle. Again, make sure you understand allthe terms of the contract.
Transfer of Tag - A licensed dealer is required to transfer the tag and title within thirty days. If a dealer issues a secondtemporary tag, the consumer should start asking questions. If the dealer issues a third temporary tag, the consumer should contact the Divisionof Motor Vehicles immediately, as this is a violation of Florida Statutes which falls under DMV jurisdiction. Be sure you have proof ofinsurance. Florida law requires all vehicles licensed within the state to have insurance. Without this proof, the dealer cannot complete thetransfer of title and registration into the customers' name.
Do not be afraid to take up the salespersons' time, and ask as many questions as needed. You are in control; never let anyone talk you intobuying a vehicle you do not want. If you do not have a good feeling about the vehicle, do not be afraid to walk away. If it sounds too good to betrue, it generally is.