BE A SMART CAR SHOPPER Before
launching your search for a good deal on a used car, spend some time
considering many of the same factors that would apply to a new car
purchase: how you will use the vehicle; how long you plan to keep it;
the size, style, features, and appearance you need or prefer; and your
budget or financing options for the purchase, as well as for operation,
maintenance, and repair costs.
Terms for used auto loans at financial institutions change with the
market and interest rates. You should spend some time researching the
vehicles that you are interested in. Ask friends about their experiences
and satisfaction with their older cars—would they buy the car again?
Also, check auto and consumer books, such as Edmund's Used Cars Prices
and Ratings, and magazines, such as Consumer Reports, for information on
the reliability records of various models. In addition, the
National Highway Traffic Safety Administration
(NHTSA) operates a toll-free hotline 800.424.9393 and a page on the
Internet, through which you can find out if a particular vehicle has
ever been recalled for safety defects.
To help you investigate and compare prices, several publications are
available that give general guidance on value for many models. Your
library, bookstore, bank or insurance agent should have a copy of the
monthly
National Automotive Dealers Association (NADA) Official Used Car Guide, monthly
Kelley Blue Book or
Edmund's
to estimate a car's resale value. Comparing prices of similar makes and
models can give you an idea of which seller offers the best deals.
SOURCES FOR USED CARS Consider the following sources when looking for a used car:
- New and Used Car Dealers—Both new and used car
dealers can be excellent sources for finding a quality used vehicle.
These cars may be serviced by the dealer and sold with limited
warranties.
Whether you are considering buying from a used or new car dealer,
check out the dealer's reputation and reliability first. Call the Better
Business Bureau for a reliability report (Contact and location
information on all BBBs in the U.S. and Canada is located at our main website. Ask the dealer how you may contact the car’s previous owner.
- Superstores—Superstores offer a high-tech (via in-store computers and/or the Internet), no-price haggling way of buying used cars.
- Car Rental Agencies—These agencies may sell used
rental cars, generally 9 to 12 months old and driven less than 25,000
miles. They often provide the car's maintenance and repair records and
offer a limited warranty. Mileage on rental cars is often high on a
per-year basis. The cars may suffer from the wear and tear that comes
from use by a variety of drivers.
- Bank and Loan Companies—Bank and loan companies
sometimes sell repossessed cars to pay off defaulted loans. Quality
varies from car to car. But since the vehicle is being sold to recover
the amount due on a loan, it may be possible to get a good price on a
good car.
- Private Owners—Private owners usually sell their
used cars through newspaper ads. You may find a well-maintained car
selling for less money than you would pay a dealer. If you buy a used
car from a private owner, ask for the car's maintenance and repair
records and, if the seller is the first owner, for records of the
original purchase. Also, check the title to make sure the person selling
the car is the legal owner.
Note: Be wary of fraudulent, criminal dealers,
commonly known as "curbstoners," who offer vehicles through newspaper
ads and may disguise themselves as individual sellers. The cars offered
may be stolen or damaged, and their odometers may be rolled back.
- Vehicle Auctions—Government, private, and online
vehicle auctions, which can be attended by the general public, as well
as new and used car dealers, are becoming increasingly popular. Some
common things to remember about buying vehicles from auctions are:
- you will need funds for on-the-spot payment,
- getting a warranty is rare, and
- it is unlikely that you will be able to take a car to a mechanic for inspection before you purchase it.
FTC BUYERS GUIDE Under
the Federal Trade Commission's Used Car Rule, all sellers of used cars
(except private owners), are required to place a large sticker called a
"Buyers Guide" in the window of their used cars, light-duty vans and
light-duty trucks.
The Buyers Guide
tells you whether the vehicle comes with a warranty and, if so, which
systems are covered, how long coverage applies, and what percent of
repair costs the dealer will pay.
The Buyers Guide also alerts you when a car is being sold with
implied warranties only, or with no warranty at all ("as is"). Once you
complete a purchase of a car “as is” and drive it off the lot, the
dealer has no further responsibility for the car. Be sure to sign the
Buyers Guide and request a copy for your records.
Under most state laws, if the car does not come with a written
warranty, and it is also not sold "as is," it is covered by an implied
warranty. Implied warranties make dealers legally responsible if the
cars they sell fail to meet reasonable quality standards at the time of
sale. Depending on your state's particular laws, the implied warranty
may guarantee that the car will run, or that it will live up to the
seller's assurance that it is fit for a particular purpose, such as
pulling a trailer. Your state consumer protection office can provide
more information about the specifics of implied warranty coverage.
ON-THE-LOT CHECKLIST Keep a sharp eye out for the following as you get your first look at a used car:
- Body—Look for rust, particularly at the bottoms of
fenders, around lights and bumpers, on splash panels, under doors, in
the wheel wells, and under trunk carpeting. Small blisters may indicate
future rust sites. Check for paint that does not quite match, gritty
surfaces, misaligned body panels and paint overspray on chrome -- all
possible signs of a new paint job, masking body problems. Look for
cracks, heat-discolored areas, and loose bumpers -- warning signs of a
past accident. A welded seam may mean that the car is actually a body
shop's "rebuilt" creation from salvaged parts. Look for welded seams in
the trunk and on the floor; bumps under the paint around the windshield
or rear window, or between doors, may indicate a rough welded seam
beneath the paint. Also, look for hail damage. If the vehicle is dirty,
have it washed for a better inspection.
- Tires—Uneven wear on the front tires usually
indicates either bad alignment or front suspension damage. Uneven wear
on late model cars with radial tires may signal improper tire rotation.
Do not forget to check the condition of the spare tire and make sure the
correct jack is in the trunk and in working order.
- Battery—Look on the sticker for the guarantee date. A battery generally needs to be replaced after 25,000 miles.
- Doors, Windows, Trunk Lid—Look for a close fit,
ease of opening and closing, and secure latches. A door that fits
unevenly may indicate that the car was involved in a collision.
- Window, Glass and Lights—Look for hairline cracks and tiny holes.
- Tailpipe—Black, gummy soot in the tailpipe may mean worn rings, or bad valves and possibly expensive repairs.
- Shock absorbers—Lean hard or "bounce" on a corner
of the car and then release it. If the car keeps rocking up and down,
the shocks may need replacing.
- Fluids—Oil that is whitish or has white bubbles may
mean that water has been introduced into the system and this can be a
sign of major mechanical problems. Check the radiator fluid; it should
not look rusty. With the engine idling, check the transmission fluid; it
should not smell rancid or look dark brown. Check for leaks and stains
under the car, on the underside of the engine, and around hoses and
valve covers.
- Mechanical Parts—Be sure all headlights,
taillights, brake lights, backup lights, and directional signals work
properly. Test the radio, heater, air conditioner, and windshield
wipers.
- Interior—Check the upholstery for major wear and
tear; look under floor mats and seat covers. Check the adjustability of
seats and make sure all seat belts work. Check the locations and working
order of airbags. Ask whether they have ever been deployed. Check the
steering wheel; unlocked, with the engine off, it should have no more
than two inches of play. Lots of wear on the driver's seat and/or heavy
wear on the brake and accelerator pedals of a car with low mileage may
indicate tampering with the odometer.
ROAD TEST CHECKLIST
- At Start up—The car should start easily and without
excessive noise. Once the car has warmed up, listen for engine noise as
you drive; unusual sounds may be signs of major trouble. It is
important that you listen to the car's engine, transmission, brakes,
etc. Since you are interested only in a mechanically sound car, any
noise that sounds strange or unusual should be a warning signal.
- Test Drive—Drive on a variety of roads -- city
street, freeway, two-lane highway and rough paved and unpaved surfaces.
Does the car accelerate and decelerate well? Watch for unusual
vibrations, noises or odors.
- Pick Up—Make several stops and starts, at varying
but safe rates of speed on a clear, level road surface. The car should
accelerate without hesitation and should brake without grabbing,
vibrating or pulling to one side. When you step firmly on the brake
pedal, it should feel firm, not spongy. Have a companion look at the
exhaust while you let the car decelerate from 45 mph to about 15 mph,
then step hard on the gas. Blue smoke may mean worn rings or valves;
white smoke may be a cracked block.
- Steering—Try turning at various speeds. Too much
sway or stiffness can mean bad shocks and/or front-end problems. Turn
the wheel all the way from one side to the other; power steering should
feel smooth with little or no squealing.
- Frame and Alignment—If you suspect a car’s
structural condition, have the vehicle checked for frame damage from a
local tire alignment dealer. A car with a bent frame can be dangerous
and its value greatly reduced.
- Odometer Accuracy—Look for signs of odometer
tampering: white lines between the numbers that do not line up or
vibration of the 1/10 mile numbers while the car is moving.
- Get A Thorough Inspection—Have a mechanic inspect
the car. Take the car to a reliable repair shop or auto diagnostic
center and have the mechanic give it a once-over. You will have to pay
for this service, but the money you invest up front may save you many
more dollars down the road. Ask for a written estimate of the costs to
repair any problems the mechanic finds, and use that estimate as a
bargaining chip when you make your offer for the car. In some states an
official state inspection may be legally required. Check with your
Department of Motor Vehicles for specific laws in your locality.
CLOSING THE DEAL Before signing a contract or purchasing a used car, you should do the following:
- Take your time to read and understand the entire written agreement.
Ask questions. Don’t sign unless you are satisfied with the answers.
- Be sure that all blank spaces are filled in, that all of the
salesperson's verbal promises are included, and that the type of
warranty that comes with the car is spelled out.
- If you are required to make a deposit, ask whether it is
refundable, and under what circumstances, and make sure the information
is also included in the contract.
- Be sure to get a signed statement verifying the mileage at
the time of sale. Most state laws require dealers of used cars to
provide the buyer with this information in writing.
- Know your state's requirements concerning emissions
inspections; certified state auto inspections; child safety, seat belt,
and airbag requirements; and title transfers.
- Make sure the vehicle is not stolen.
Buying a used vehicle can be a rewarding experience but always remember,
“when in doubt, check it out!”
QUICK CHECK LIST Before purchasing any used car, be aware of the following:
- Inspect the car in daylight and good weather. Bring someone you trust along to help you make a thorough appraisal;
- Don’t expect perfection in a used car. Compromise on minor problems you can fix yourself, but don’t overlook serious defects;
- Make safety a major priority. Older vehicles may not be equipped
with airbags, child safety seats, seat belts, anti-lock brakes or
security systems. Determine your locality's vehicle safety requirements
for cars, mini-vans, recreational and sport-utility vehicles and other
vehicles before you buy;
- Road test before you commit to buy. If you are not allowed to test drive the car, do not buy it.
- Have a Trusted Mechanic Thoroughly inspect the car before you purchase it.
