Sometimes used cars have never been more reliable or more affordable. Following these steps will help you find and buy the used car you want.
Credit has softened somewhat for consumers, with excellent deals out there especially at credit unions. However, there are still skittish banks, high unemployment and general consumer malaise. All three can affect the credit situation.These are difficult economic times so it makes sense to have updated info - and not advice published in 2005 when the living was easier or even from 2009.
Buy an Orphan (or a Red-Headed Stepchild)
GM is offering strong financing rates in the spring of 2010 for some certified pre-owned Saturns and Pontiacs because both brands have been discontinued and GM dealers must have been clamoring for something to get customers in the door to buy these two defunct brands. Basically, used cars are huge money makers for dealers. New cars aren't. That's why the dealers put the squeeze on GM to offer attractive rates for the used Saturns and Pontiacs. They saw a way to keep making money of the defunct brands and retain customers.Even though dealers make strong profits on used cars, deals can still be had on the defunct brands (or orphans as some call them). Customer confidence diminishes in a car once it is no longer being made and resale values drop. If you buy a used car and run it into the ground, then an orphan makes sense for you, especially a certified pre-owned model that is going to be under warranty for a while.
By the way, don't worry about a lack of parts or service personnel. Think dealers make a lot of money off used cars? They make fantastic margins on service. Parts are not going to be scarce for any mass market vehicles like Saturn or Pontiac, especially because they share a lot of parts with other GM models.
While not an orphan, during the first quarter of 2010, Toyotas subject to the massive recall are going to be bargains, especially if you don't plan to sell them within the next two years. Your best bet is going to be a private seller who is foolishly panicking at the thought of owning a Toyota. Exploit their fear to save some money.
Visit your local Vehicle Registration Office before you sign on any dotted lines
Yup. You may have to stand in line and deal with
what seems to be a worldwide inefficiency that comprises government
offices. But you can also arm yourself with information as to your
rights, the requirements of the seller, and various obscure laws.
In Australia for example, I discovered a Vehicle
Information Package that the seller can (but is not required to)
provide the buyer with. It contains information about all the previous
owners of the car, as well as possible liens and accident/stolen vehicle
reports filed.
In some places this is mandatory, which is also
something good to know. A seller trying to save a few bucks by not
getting the report may end up sticking you with not only the cost of
getting the report when you try to register your new wheels, but the
nasty surprise of what’s in it.
Get under the car
Even if you will get your shirt dirty, and don’t
really know what you’re looking for, get under the car. Anybody can see
if there is a gaping rusted out hole in something, or if there are
leaks that should be addressed.
Besides which, it makes you look like you know what you’re doing, which will put a shady seller on guard.
Take it on the highway
While test driving your potential wheels-to-be
(we don’t have to tell you to test drive it, do we?), take it on the
highway if at all possible. Cruising residential streets will only give
you a partial picture of how the car drives. Get it to highway speeds
and you may discover a terrible rattle or shake, or misalignment that
could be dangerous but that would be missed in a general mechanic’s
safety check.
Test everything
And I mean everything. All windows. All doors.
Trunk latches. Key holes. Seat adjustments. Seat belts. Lights. Wipers.
Turn signals. Radios. Dash functions. Odometers and speedometers (a
pitiful lesson learned from personal experience). There’s nothing worse
than buying a car, and then experiencing the slow and agonizing
discoveries that your new wheels really aren’t all that new, nor are
they fully operational.
Take it to a mechanic
I’ll admit, I’m the first person to want to skip
this step. It’s costly, it takes time, and I don’t have a mechanic I
trust. And if you are buying the car in a place where a safety or
road-worthy certificate is required, you don’t need to also run it by a
mechanic, do you?
