Avoid Landing a Lemon - Guide to Buying a Used Car

With the fast depreciation of new vehicles, the wise car buyer will shop for a used car rather than a brand new one. If you are in the market for a new used car, you need to know what to do to avoid buying a lemon or paying way too much for a vehicle. After all, just because a car is used doesn't mean that it can't be a great vehicle for a great price!

Where to Find Cars for Sale

You can find cars for sale a variety of places. Almost all dealerships have some used cars available that they received as trade-ins, even if they specialize in selling new vehicles. You can also buy directly from a car's owner. Check newspaper and online classifieds to find cars that are currently for sale. Keep your eyes open as you drive around town to see cars that have for sale signs in their windows.

You will probably see some cars parked along the side of the road for sale. These are often for sale by individuals who fix up cars and then resell them for profit. You can sometimes get a good deal on one of these cars, but make sure you do your research before buying one. It could have a problem that the seller is hiding or does not know about.

Figuring the Car's Value

You do not want to buy the cheapest car on the market. Extremely low prices usually are there for a reason. What you want is to find a good deal, which means a good car that is priced at the low end of what it is worth. Remember, a cheap car is likely to need costly repairs in the near future.

How can you know how much a car is worth? One resource to use to check a car's value is Kelley Blue Book. This online resource allows you to search using the car's make, model, year, and condition. It will show you the average selling price for cars similar to the one you are considering. Look for a car in the middle to low end of the price range shown. Keep in mind that cars priced well below the value may have an underlying problem that you cannot see when you take them for a test drive.

Decide the Type of Car You Want

The type of car you want will depend on many different factors. If you have children or anticipate having children in the near future, make sure that you choose a vehicle that has enough room in the back seat for a car seat. Many compact vehicles do not accommodate rear-facing car seats, even though they have a back seat.

You will need to decide how important fuel economy is. A large SUV will have enough room for your children's seats, but it is going to drink gas. If you intend to drive the vehicle long distances on a regular basis, you need something a little more fuel-efficient.

As you consider the type of car you want, be sure to consider how much the insurance will be. Car insurance providers charge different rates for various vehicles based on their safety ratings and overall crash histories. Talk to your insurance provider about the rates on the different vehicles you are considering. You will find that two vehicles with very similar features will have very different insurance rates.

Mileage and Age Considerations

As you search through the classifieds for your next used car, make sure you pay attention to the mileage on the vehicle. A car with more than 155,000 miles is not going to last long. However, a car with low mileage may not be a good idea either if the car was driven poorly. Find out from the buyer what percentage of the miles were highway miles if you can. Highway driving is not hard no a car's engine. If a car with high mileage was driven on a long commute over the highway, the engine will be in better shape than a car with low mileage that was driven by a "soccer mom" around town to the kids' activities.

You also want to consider the age of a car. Cars, no matter what type they are, do not age well. A car that is more than ten years old is going to take your hard earned money over and over for costly repairs. Even if the car was rarely driven, it can still have worn out parts simply because the parts are old. If you need a bargain, shop for a car that is five or six years old.

The Purchase Process

Once you find a car that you like, run a vehicle history report on it. You can also ask the seller if you can take it to a trusted mechanic to get checked out. These two steps will help you avoid purchasing a car with hidden problems.

If you are satisfied that the car is right for you, be sure that you negotiate the price. Most buyers are willing to take a few thousand less than they have priced the car. Dealers always price the car higher than what they must sell it for, so do not be afraid to make a lower offer. Keep the attitude that you have many other cars to choose from, and you will be able to get a lower price.

Once a price has been agreed to, you will need to pay for the car. If you are using a loan, get a check from your bank that you can use to buy the vehicle. The title will then be transferred to you. If you are buying from a dealership, the dealer will probably handle the legal aspect of the title transfer. If you are buying from a private seller, you will have to follow the rules of your local DMV to transfer the title from the seller's name to your name. You will be required to show proof of insurance before you can transfer the title, so be sure that you add the car to your insurance policy as soon as you have purchased it.