The term cheap used car indicates a reasonably priced and pre-owned car. Practically, a car becomes a used car the minute it rolls out of the showroom but in reality the used car will not have the smell and feel of the assembly line. Since it means the older the car, the more the expenditure and tribulations encountered, it is highly essential to reduce such troubles. Hence, warranties and guarantees will in no way help the buyer in reliability.
Buying of cheap used cars online is on the increase day by day because purchase of auto parts and accessories, insurance, car loans and repairs and trouble-shooting of vehicle can also be done online. There are ample sources to buy cheap used cars namely new car dealer, super store dealer, used car dealer, individual owner, used car websites, used car auctions and print classifieds. Compared to super stores, used car dealers may not offer many choices but the price may be a little lesser.
The advantage of buying a used car from individual or private owners is that the price of the vehicle will be negotiable and affordable. Handling of the car at times even reflects the traits of the person selling it. As far as auctioning is concerned, the range and eminence of the used car varies from auctioneer to auctioneer. Buying and selling of cars have been made literally a cakewalk through online sources.
There are two great advantages of buying cheap used cars i.e. avoiding the expense of a brand new one and secondly the cost of the car depreciates 15 to 20 percent in one year. Therefore cheap used cars are gaining popularity in the market. This is good for the customers since they have a lot of choices to choose from. The service history of the used car should be checked for a used car because a fresh coat of paint might cover up a serious dent or rusting panels and a major damage or accident could be a potential disaster. It is also customary to check the registration details, insurance details, no. of previous owners and their antecedents. A broken down engine is easily detectable. A noisy gearshift indicates that there has been extensive wear and tear, which could end up in expensive repairs. Also acceleration and deceleration are other important aspects. The quality of clutch and hand brake are of principle importance.
A cheap used car should necessarily be in good working condition, saving on fuel with good mileage and well maintained. Buying a cheap used car involves not only the purchase of replacement parts and repair costs but also many other factors, the most significant one being insurance. A pre-purchase inspection is absolutely necessary. Tyres, seals, belts, hoses, radiator fuel injectors, oil leaks windshield chips or cracks, missing parts, signs of repainting and dents are the other items that need thorough inspection. If all these are not inspected, we run into the dangerous risk of destroying the engine, which means that a cheap car with expensive problems is not at all cheap.
Getting a used car loan during a credit crisis is becoming more difficult. Used to, getting a loan for a used car was rather simple. If you had good credit there was no problem and if you had marginal credit it was still very easy to get a car loan. Even people with bad and poor credit were able to qualify for a car loan with certain lenders. But during a credit crisis these loans are much harder to find. Banks and financial institutions are much more strict on the rules and guidelines when it comes to approving someone for a loan for a used car during a credit crisis. Many lenders will simply shut their doors on people with below average or poor credit.
Buyers with credit histories showing the slightest bad decision are being denied for loans when before a one-time bad deal would not be considered for denial of a loan. Most of the time an automotive loan would be denied because of habitual bad credit decisions, not one-time offenses.
The U.S. auto dealership group, AutoNation Inc., says that approvals for car loans have gone from 90 percent last year to a current 60 percent. Terms for loan approval are going to be much more strict for marginal and even good credit scores during a credit crisis. Some looking for a used car loan are going to have a down payment of 20% to 30% rather than the 0-10% of the recent past. Some people who would have been approved under normal circumstances won’t be approved during a credit crisis. And those who do get loan approval are either getting loan payments for more than they can afford or are not getting approved for as much as they would like to have. Interest rates are also higher than expected, even for those with good credit.
Another major concern when it comes to getting a used car loan is the loan value of the car. Many car buyers opt for very long repayment plans when buying a car, which lowers the monthly payment. But the problem occurs when trying to sell the vehicle. That long repayment plan has made the pay-off of the car more than what the actual value of the car is. You will either have to try and sell the vehicle for that price or continue paying on a car that is no longer yours.
When wanting to get a used car loan during a credit crisis, good credit is the number one priority. Without a really good credit score, the chances of getting a loan with low payments and a low down payment are almost impossible. Making sure you have enough income coming in to cover current bills and other expenses on top of your car loan payment is another important issue to consider. Don’t take on more debt than you can afford to pay each month.
Before applying to get a car loan, take a look at your credit score to see where you stand. The lower your score, the less likely you will be able to get a loan. If your credit score is less than stellar, try saving up a good amount of cash to be used as a down payment. Putting a large amount down will sometimes help get approval since the loan amount can be smaller. A good way to get cash is to sell your current car to a private party and use that money as down payment on another car. If your current car can be sold for $10,000, use that money for a large down payment or as a safety net if you get approved for some, but not all, of the price of the car you want. You can then use the cash to pay the difference.
During a credit crisis, having great credit is the best way to get loan approval, but there are alternatives for even those with poor credit. Many lenders will work with you to come up with a solution for your used car purchase.
How many times have you heard someone complain about a car purchase? They knew they were being ripped-off but still went through with the car deal. Or how about they fell in love with the car and just couldn’t say ‘no’.
Unfortunately it happens all too many times and is in fact what used car dealers count on, it is one of their ‘tricks of the trade’. Used car salesmen know that the vast majority of people will not walk away from a car deal especially if a Buyers Order has been signed. Ironically, it is our own society’s love of cars that has become a tactic for a used car salesman to make you feel obligated to buy.
It is a simple fact that most potential used car buyers become used car owners because they were unwilling or unable to say ‘no’. The main focus of a car salesman is to get you to ‘fall in love’ with the vehicle and get a written commitment making you believe you must buy the vehicle. Here are a few guidelines to remember the next time you go shopping for a used car:
1.Don’t ‘fall in love’, no matter what. There will always be another vehicle you like just as much somewhere else; even if it is the rarest of the rare, don’t get attached. If you fall in love with the vehicle, you will lose all perspective and you are now vulnerable to the whims of your salesman. You have to be able to bargain and/or walk away otherwise you will lose money.
2.Tell them you don’t like something, no matter what it is. Remember, you are dealing with a salesman and their manager; these people are not your friends (no matter how nice they seem). Tell them the interest rate is too high or your trade allowance is too low; you will not hurt their feelings. The only person with the potential of getting hurt is you.
3.Just say ‘NO’, you can do it. If you do not like the deal, think the interest rate is wrong, not enough was taken off the price, what ever it is, be prepared and able to say ‘NO’. This is the one thing used car dealers count on is the customers’ inability to walk away from the car or the deal. It doesn’t matter that you signed a Buyer’s Order; you can still stand up and say ‘NO’.
Always adhere to these three rules and you will never get taken by another used car salesman again. Think about it, buying a car, even a used one, is probably the second largest expense you will make. And unfortunately, if you get railroaded into a purchase or stuck with high payments you are the one who has to live with it and be reminded of it every time you drive the car or pay the bills. Don’t fall into the trap of losing your head over a car; remember it is a tool nothing more.
Selling your old car is not easy. One needs to be on toes and secondly follow the right strategy for selling the car. There was a time when one use to browse through the pages of newspaper were filled with the advertisement of “Old cars available for sale”. Now Internet has become a great option for selling the cars. While placing the advertisement on Internet it becomes necessary to fairly price the car. Before selling the car and to crack the best deal one need to take care of the looks. Minor things like if there is a dent in the car, and then fix it. Paint the car and if seats are looking grim and dirty, then get the seat cover changed. Beside the appearance, get the tires and steering aligned. Check the filter and battery and if required get them changed. Once your car is revamp then take few pictures of the car from different angles. This added advantage will give the feel to the customer that this is something he is looking for. However, with the good points it is necessary to highlight the drawback as well. Remember we buy genuine things and so will the other person. Beside these general things, it becomes important for us to place the advertisement for selling the car on different sites like eBay, Auto Trader, cars.com, craiglist, etc. There are many other sites as well but going for a genuine and trusted site only. Therefore, you can easily find the one that will highlight your product better. When you start getting the response for your ad, do check and evaluate them.
A used car which is also known as a second hand car or a pre-owned car is a vehicle that is previously owned by one or more owners. Used cars are sold through a variety of franchise and independent dealers and rental car companies. Individuals can also purchase and sell used cars through online and newspaper classifieds.
Purchasing a used car can save a lot of money. A new car depreciates fast in a few years and is worth only about 50-60 percent of the original price after as short period as three years. It is true in general that a new car requires less maintenance initially and during the original warranty coverage period offered by the manufacturer, most of the problems would be covered. Still, buying a new car will not always mean that the buyer will get complete perfection. Buying a used car still involves a bit of a risk – there is no guarantee that the car has been properly maintained. There may be some hidden problems in the engine or automatic transmission that may not be felt when the car is test-driven while buying. Maintenance costs are typically higher for a used car. However, used cars are more preferred these days but some care is exercised before buying. Moreover many car manufacturers offer used cars of previous models under Certified Pre-owned programs where the used cars are inspected and reconditioned and packed with additional warranty coverage.
Steps to buy a used car:
Step 1: which type of car? Typical factors are how may people are to be transported, distance to commute, safety features, mileage, accommodating in the parking area or garage.
Step 2: How much can be afforded? Down payment in a single stroke or determining a realistic monthly payment that will fit into the budget is an important first step.
Step 3: Used car bargains. The price of a used car is based on its brand name, condition, mileage, performance and reliability. Hence, prudent bargaining should be exercised.
Step 4: Research the prospective used car. An online research can also be looked for used cars in the desired price range by reading car reviews, buying tips and safety ratings. Car buying tools which provide model information and side by side feature comparison can be examined. Physical inspection of the interiors and exteriors can be carried out in the first place to satisfy that all the interior components lighting system and tyres are in good condition. Any defective items requiring replacement after the purchase will increase the cost of the used car. A review of the vehicle history report can indicate the details like history of registration, odometer readings, major accidents, lease or Finance details, stolen and warranty check. A check on the VIN (Vehicle Identification Number) can be made by comparing the VIN with the title to the number on the car to make sure they are identical. The VIN is usually located on the dashboard under the windshield, on the door, hood and engine.
Step 5: Finance for the car can be done through Cash, Bank loans or Financing through the dealer. Unless it is planned on purchasing by full payment in cash, it is suggested to get pre-approved financing and the cost of Insurance is also to be factored. Usually the interest rates on a used car will be higher.
Step 6: Used Car markets. Used cars can be bought from Private parties; new car dealerships used car lots and auctions.
Step 7: Test-driving. On a test drive, the aspects like Acceleration from a stop, Engine noise, and Hill-climbing power are to be checked.
Step 8: Negotiation. The foundation of successful negotiation is information. A thorough study on the price prevalence for similar type of cars should be known before buying.
Step 9: Closing the deal. A thorough review of the contract is required. The charges like cost of the vehicle, documentation fee, smog fee, smog certificate, sales tax and license fees are to be understood.
Lemon Law:
Lemon laws generally apply to new cars sold to private people. Used car lemon laws cover non leased cars bought from dealers. Some of the steps to avoid buying a lemon are as indicated below:
The VIN # has to be checked. There are possibilities that even a new vehicle might have been damaged or written off and not disclosed by the seller. Obtaining a report from authorized agencies like CARFAX (in Canada and the US), is recommended.
Confirmation in writing should be obtained that “there is no lien“on the vehicle.
An independent mechanical inspection is to be arranged.
All implied or expressed warranties are to be obtained in writing. This is required especially on an used vehicle as normally warranty will not exist. If there is a warranty, period and coverage of the same will have to be obtained in writing.
Salespeople are not mechanics. A copy of the report of the mechanical inspection completed by the dealer and signed by a certified mechanic is to be insisted rather than merely relying on a verbal mechanical report from a salesperson.
Good-quality, affordable used cars are available in the market today and local automotive dealers sell many of them. There are the following types of used car dealers.
New-Car Dealers Used-Car Lots – Most of the new-car dealers also sell used cars of recent late model vehicles in good condition in their lots, which are relatively expensive. Older and less expensive vehicles are auctioned, usually for purchase by independent used-car dealers.
Independent Used-Car Dealers – Independent used car lots offer affordable cheap cars. Proper caution should however be taken to determine if the price is reasonable and that there are no hidden problems in the vehicle. Warranty or return policy may not exist for most used cars.
National Used-Car Dealers – CARMAX Superstore (authorized agencies in US and Canada) is notably one of the largest and reputable used-car dealers and a good source of no-hassle deals, however not necessarily the cheapest deals.
Websites such as eBay has an entire section dedicated to selling used cars of all types and price ranges. However, their buyer protection program has to be made use of to avoid obvious risks and possible extra costs that might be involved in buying a used car, which is far away.
A great used car deal can be closed with some amount of time and energy and a little bit of research for bagging a reliable and economical vehicle in the process. Following are tips designed as a guideline for buying a used car from a dealer.
Type of Car. Many dealers advertise pre-owned cars of various types in local newspaper classifieds, consumer circulars, and weekly shoppers and through popular automotive publications. So the consumer can go through them and select the suitable care of reputed make, required size and their dealer.
Obtain the value. Once a prospective used car dealer is found, it is time to work out whether the quoted price is realistic. The car’s retail value can be explored by inputting data like make, year, and model and mileage information at the website: NADAguides.com, Used Car Information Center. This information is the basis upon which all other assessments of value are built upon. A value report outlining several different values along with their descriptions will be provided after inputting the above data.
Research of the Car Marketability. The first step in determining the worth of the car is pinpointing the retail value of that car. The next step is determining the marketability of that vehicle. i.e., what others are currently paying for similar cars with similar features in that marketplace? It is essential to know how significantly a vehicle’s marketability affects its value.
Budget Determination. Affordability to spend is to be determined before entering into the used car buying process. If planning to finance the car, calculations on affordability on a monthly basis (in the form of a monthly car payment) is to be fixed after taking into considerate all other personal expenditures like monthly rent, mortgage, utilities, etc. After having determined the monthly car payment allowance, the amount of cash for down payment has to be figured out. And this will depend on the current financial status of the individual. Finally, an affordable used car purchase price is to be determined based on these calculations.
Guarantee check. It is essential to know in advance about the type of warranty the used car is covered. In some cases a manufacturer’s certification program may be available or in some other cases it may be covered under a dealer-backed warranty. If no warranties are offered, an independent, extended warranty to cover the vehicle can be purchased for a little extra money. Warranty programs are significant because of the coverage of the cost of specific major repairs that may occur to the vehicle mechanically. Moreover, certified cars with manufacturer warranties undergo a rigorous inspection process.
Avoid buying a lemon. The single biggest fear of most used car shoppers is buying a lemon probably. Certain steps can be followed when personally inspecting a pre owned car, which includes putting the vehicle through a comprehensive interior, exterior and mechanical appraisal tests.
Deal Negotiation. One of the largest purchases a consumer can make is buying a Car. At NADAguides.com, the importance of negotiation as a tool to help car buyers is stressed to get the best deal on a used car. Before entering into a negotiation process, it is to be made sure whether the individual is ready to buy – since more time is wasted in bargaining for a vehicle without having an intention of purchasing. A clear understanding regarding the vehicle’s current value based on its make, year of manufacture, model, condition, mileage and market desirability will be obtained if some homework is done ahead of time.
Most people cannot afford to pay cash and have to obtain car loan financing for purchase of a new or used car. The world of car loans and financing can be quite confusing. Many items have to be considered such as affordability, and terms of payment or whether a car lease can work out. The first step is to decide on the type of car to buy. The next important step is to find a good financier and it is important to explore various lenders and shortlist a suitable lender, while qualifying for car loan financing. This can be done by searching for car loan offers online and by visiting local banks.Available Car Financing Options for Used cars are: Used Car Loan: This traditional car financing method is still preferred by many. The option is beneficial as when the loan is paid off; the car is free and clear for owning. Desired alterations can be made to the car unlike a lease offer where the car is returned when the car lease expires.Used Car Lease: A car lease is also a popular car financing method for people who wish to keep their monthly payments low and also a preferred method of finance for getting a new car say, every two to three years.Refinance Used Car Loan: The Refinance car option should be considered when more favorable terms are received during the car purchase and it is especially a good option if the credit has recently improved and can qualify for a much lower rate.Obtaining a pre approval for a Loan: Obtaining a pre approval for a set amount of cash can be made if good credit is available and the lender can be decided before visiting the car dealership. After having obtained the pre approval, how much to spend is to be decided as there will not be any tempting to look at used cars that are out of the price range. Dealers may be more willing to negotiate a deal if they know that approved for a loan has already been obtained. Moreover salespeople will do exhibit their best task to accommodate people who has already obtained a prior approval for a loan, as most of them work on commission.Down Payment and Interest Rates: The initial down payment will determine the type of car loan financing received. Lower interest rate offers can be expected with greater down payment. Auto lenders will also a feel that the risk is less if more money is invested in the vehicle upfront. Length of Payment Terms: Dealers are now offering extended payments plans of up to seventy-two and eighty-four months, compared to the conventional sixty-month term. This has resulted in people to opt for more expensive used cars that would generally be out of their price range.
Online approvals of used car loans are fast and easy now. There are a host of auto finance companies on the World Wide Web focusing to help people find used car loans. These companies typically sustain relationships with scores of auto finance lenders throughout the country and believe that they can find lenders with affordable used car loan rates. There is not much work to be done when searching for used cars is done online. The first step is to just fill up an auto loan application form. Subsequently, the online computer network can instantly match up the car buyers with lenders in a given area. The system generates the lenders which are the companies best suited to offer car loans. A variety of websites can be chosen by car buyers to check out before they decide on the company. Companies change their car loan rates regularly and certain fees associated with the loans may be hidden or in fine print. Therefore a review of the rates and terms and conditions for a few auto finance companies need to be done before making decisions.
One of the most important factors to be considered when decided to go for a used car is its reliability. Reliability is a crucial issue and after all choice will be better of the do not require more repairs. All cars are not the same. Some models of cars are proven to be very reliable while others are known for constant problems. The original warranty coverage would be probably over as it is a used car and hence the model has to be more reliable. For used cars, vehicle reliability has to be researched. The car sheen will be dull if the car has ongoing reliability problems. There are a number of resources for checking the reliability ratings of certain models.
Reliability studies indicate that expensive maintenance costs will be encountered after six years or for 10,000 miles for the average car, which means that significant repair bills will be running up along with the payments on the car for most sub prime buyers.
The annual J.D. Power and Associates report is obviously the best source of information on reliability, which is now available in the United Kingdom in association with “What Car?” Magazine, though it was originated in the United States for both new and used cars. The J.D Power survey reflects the reliability features of makes and models of various cars. It is worth to pay attention to CSI (Car Customer Satisfaction Index) report published by them. Increased Sales volume will be experienced for brands with higher dependability ratings and less likely to be avoided by consumers due to reliability concerns. That means better trade-in value will be obtained for the car.Common problems with used cars:
History of any accidents with used car should be explored, but should not be just focusing on that as the mechanic may miss out commonly overlooked problems like missing airbags, flooded cars, Stolen cars, Gross polluter, cars from salvage yard auction sales and auto mismatched VINs. Most Car dealers run a vehicle history report. Buying a used car can also be risky with the exception of purchasing a Certified Pre-Owned vehicle available with a warranty.
Though there cannot be any guarantees about reliability, some tips can be offered on how to spot an unreliable car and various valuable resources with repair and reliability trends for every used car. Odometer Clocking: “Clocking” is turning the odometer in reverse and is probably the most common dealer trick applied for used cars. The clocking is usually done by middlemen when they procure the vehicles in an auction or from a private party before it is sold again.Adding additives for disguising engine problems: This is much more common practice especially with small used car lots and high-mileage cars. Instead of fixing the engine problems, some of the used car dealers disguise it with a few bottles of oil additives for temporarily addressing the issues like plug leaks, to reduce oil burning smoke and to lessen the noise in the engine parts. On the other side by trying to cover up the problems, other troubles like overheating, oil pump failure, excessive sludge and engine deposits may crop up by using larger than recommended quantities of these additives. They just quiet the noises temporarily. It is sometimes difficult to detect these additivesCovering up flood titles and salvage: Sale of salvage titled cars by dealers has risen in the past decade. The vehicle repair costs have risen and hence insurance companies mostly declare a car totaled, subsequently the car may be assembled with cut-rate parts by an opportunist who may in turn sell the car in an auction.Laws regarding salvage and flood titles vary from state to state, compounding the problem. By having a vehicle history check run on the used cars (with agencies like CARFAX), the issues of flood titled and salvaged cars can be known.Extended warranties: Extended warranties are sold by most used car dealerships at higher rates and they are nearly useless as their limitation in coverage is extreme. The fine print has to be studied carefully to check that the warranty is not limited to cover just a few major components. These extended limited warranties will only cover a portion of the repair costs. Rustproofing: Rustproofing was once a quick and easy method for dealers to make some quick money. Applying Rust proofing to a used car has to be done only by qualified body shop.
Here are some guidelines through which you can avoid used car salesmen strategies. Moreover, help you out in finding the best used cars deals and avoiding the frauds, which used cars dealers, try out everywhere to pull on you.
You can get a second opinion for the hype. Car dealers will pressure you through every possible way to sell you on a car— fast, thrifty, sporty, etc. Don’t pay attention to their word. In spite, get someone you know, whether family member, a friend, a colleague, or a neighbor, who knows the similar make and model of the car, and ask them for their opinion.
You can carry out background checking. One of the most important however, legal things someone may sell a used car, which has been in a flood and sort of repaired. Or else you would find used cars, which had 10 previous owners and none of them would repaired it. To get certain on this issue you need to track down its history report which including clearance check on the car title. You may get some information through the seller such as what’s the reason for selling the vehicle.
You need to check for the past damages. Many car dealers try to sell the car, which has been wrecked, in a major accident. Moreover, you would be surprise by the work of auto body experts. So don’t search used car by their outer exteriors. Before buying the car make certain you check it doesn’t have any serious damages to its frame.
You can get a trusted mechanic or a used car guide to get a best car deal. He can help you in dealing with used cars. He would be able to tell you how good a shape the car in fact has. A good mechanic might gauge that.
As per the modern trends, every now and then a new car is launched with the latest features, attractive looks, intensifying standards and the newest technologies to tempt the customers! From the customers’ prospective, overlooking the glamour of a new car is pretty tough but buying a used car will surely save your coins. Nowadays, most of the Used Cars are available in every makes, models, designs and most importantly offered at relatively lower costs! Preferring a used car deal is really a sensible tact but one should not ignore the risks involved with the used cars!
Keeping in mind of the various aspects while buying a used car, we have configured few steps that will lead you to the best deals for the used cars.
Step 1. Research on Prices
Used cars are all about the prices then why not have a thorough research about it! Check out the different prices available at all the possible dealers, websites and classifieds. It is recommended to have a deep research on the prices and comparisons between the models available! Plentiful options for the deal rates and ideas offered by the market are pretty helpful in avoiding any chances of getting overcharged!
Step 2. Check out the Book value
Standard Booking Value of the car must be taken into the consideration. Automotive manuals, websites and other media sources can help you in deciding the best cars prices, based on model, make, year of manufacture and mileage.
Step 3. Vehicle Check up
If you want to have a good value of your investments, then must get an inspection and approval from a third party mechanic or technician! If you already have a good knowledge of the business, then it’s a plus point otherwise a professional mechanic’s inspection will be pretty helpful in buying and comparing the models available. You must explore options like Car Dealers, and Car Yards as they usually have a statutory warranty and may have a higher standard of quality.
Step 4. Running Cost
With Petrol prices soaring up, it’s essential to check the mileage of the car; after all you do not want all your hard earned money to be smoked out of the car’s exhaust pipe.
Step 5. Car’s History
Inquire if the car had any accident or it came under flood damage or experienced any kind of mishap. Look out for the oxidation and water stains, in order to check that if the car had come in flood contact or not! Also do complete the inspection of every nook and corner of the car.
Step 6. Ask for Proper Paper work
Inquire for all the papers and documents related with the car. Vehicle history report maintained by the insurance company can show you if the vehicle was involved in any accident or was damaged in past.
Steps mentioned above should be accompanied by a well researched analysis partly based on the comments and ideas of the specialists and experts in the auto market industry.