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.
Buying a used car is quite an experience. The person who is planning to purchase a used car should have some knowledge about the cars, their value and negotiating skills to strike a deal as otherwise he or she will be taken for a ride by the used car dealers and other private car sellers. Buying a used car makes the buyer save lot of money as any car that grows older has a higher depreciation value even in a good condition. Also, the person can go for his dream car with a better performance and, safety features for a rock bottom price. Doing a little bit of research and checking with lot of car dealers will enable the purchaser buy a used car with the best deal possible.
Used cars can be bought from either car dealers or direct from the owners or from auctions made by government firms, or from police car auctions or repossessed cars can be bought from financial institutions.
It is good to buy used car from a car dealer or person who has good reputation and brand image in the automobile industry. There are many kinds of sources from which a used car can be purchased. All the avenues should be checked in order to strike the best deal. If the purchaser is very particular in getting a car of his choice, the car dealer can be informed about the required features of the car, make, model, color and willingness to pay to get a car of his choice. This will make the search easier for both the car dealer and the purchaser.
The working condition of the used car which is being purchased cannot be known just by seeing the car. It needs to be test driven to get the feel of the performance of the car on various road conditions and traffic.
The maintenance record of the used car needs to be checked thoroughly. If it is not available it can be got from the place where it is usually repaired or maintained to find any discrepancies. If the purchaser does not have enough knowledge about cars, help from a mechanic or person with sound knowledge on cars can be taken to inspect the car while purchasing a used car.
Internet is a good source of information regarding used cars and help from people who have purchased used cars can be asked for guidance on making the best deal. The best tips are that the car is not purchased on the same day of enquiry. Enough time should be taken to look around for best used cars and also negotiations will only happen if the purchaser shows interest in buying and keeping the decision open for some time.
It is not advised to ask for a monthly payment plan for buying the used car, as many dealers make up the cost and will give a very attractive plan but the buyer may end up with huge costs on purchasing the car. The interest rates they charge, the term for repaying the amount, all kinds of fees and the overall cost can all be manipulated. Hence all the details possible should be gathered and checked to find out how much it would cost at the end of the purchase.
Both the new and used cars have their own advantages and disadvantages. It is the mind set of the people who are purchasing the car. Some like to buy cars only for the sake of showing their buying capacity and their status symbol while some others would be obsessed with buying fancy new model cars as soon as they are launched in the car market. New cars are meant for people who have the buying capacity, who think of only quality of a product and not the quantity, who would like to enjoy sole ownership of the car and who do not want to get compromised with their comfort. Whereas used cars are bought by people who would like to enjoy the benefits of owning a car but cannot afford to buy a brand new car. Such people are very practical as they think that, when a used car is purchased in a good condition it will serve the purpose of the new car and also comes with a very less price tag. Used cars are purchased by people who know the value of money and save money by all means and methods.
Buying a new car is really exciting, but then buying a used car makes sense as lot of money is saved. A new car after purchase is no longer a new car and has to under go depreciation value. As the value of the new car decreases up to 40 percent within three years, a car is not considered as an investment. Whereas when a used car is purchased it benefits the purchaser with a lower value. Money is saved on insurance premium cost, registration cost, financing cost and licensing fees and the purchaser need not worry about the sales tax too.
A used car is considered to be less reliable, as the exact condition of the car is not known. Also when a used car is bought in auctions, the purchaser is not even given a chance to look or test-drives the car, which makes the purchase altogether very risky. There is no idea if the previous owner performed maintenance and repairs of the car regularly. Such cars even though bought at a very low price will end up costing more on repairs and maintenance after purchase.
When buying used cars detailed inspection of the interiors has to be made, as it will avoid any chances of replacement of any item as it costs more. The exterior of the used car also needs careful examination to find out if the car was involved in any accident or damaged in any natural calamities etc. The engine and the oil should be checked to avoid heavy expenses in replacing the car engine. Car should be test driven to see the performance of the car, suspension and to check the brake controls.
There are certain kinds of used cars which are maintained very well, handled and driven by a single owner and which even comes with a lifetime warranty. Such cars are off-leased and sold. The purchaser will be very lucky enough to buy such kind of well maintained, hassle free used cars.
There are both advantages and disadvantages involved in buying used cars. It all depends on the person’s capability to negotiate, his knowledge on buying a particular make or model of the used car and the sources from which he can buy the used car. The preference, affordability and needs of the car purchaser also matter a lot. Key Advantages of Used Cars:
Many people buy used cars just for the reason that they can afford to buy one. As any brand new car loses value on depreciation as soon as it hits the roads, so it is possible to get a low mile run used cars for a very less amount compared to its new counterpart. Also it is possible to get the dream car of the purchaser with all the necessary features at a very low price provided the purchaser has to be patient and look for the car of his choice from various sources. It is possible for the purchase to buy a used car even up to half the price of purchasing a new car.
There is a wide range of models, brands and colors available for the purchaser to buy a used car. Good quality cars are available when purchasing an off leased used car as they are maintained very well, handled by a single person and are available with an impeccable look with all the built in features. Also, nowadays it is possible to even transfer the factory warranty of the car from the previous owner in case the car is within the warranty period. Used Cars: Major Disadvantages:
The interest rate on the purchase of the car matters a lot. In the case of buying used cars the interest rates are a bit higher than on the new cars as it involves more risk for the lender while giving loans on used cars. Also there are zero percent loans and financing readily available more for new cars than for the used cars.
There is no guarantee or assurance offered to the purchaser when buying a used car as to whether the car is in good condition or with the right mileage. Also there is no guarantee that the car is maintained properly and is free from any kind of accidents. There may be problems in the engine of the car or with the transmission which can be far from the sight of the purchaser of the used car. Sometimes the purchaser may end up spending more money on the maintenance of the used car than he would have spent on a brand new car. In such cases the purchaser loses his peace of mind with the never ending problems caused by the car.
When buying a used car, the purchaser needs to be very knowledgeable about the car itself. He should thoroughly go through the car’s history, maintenance records, terms and conditions, paperwork etc. If not, the purchaser may end up with great problem which may last for ever.
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 more car dealer tactics to watch out for when you’re buying your new or used car. Remember, you are in control of the situation, you have the say in the final decision. After all, you’re the one with the money, and you intend to spend it as wisely as possible.
Car Dealer Tactic #7
Some car dealers pursue a potential customer until they wear them down to buy.
Now if you don’t want to be pursued by a car dealer, just don’t give a phone number. Say ‘it’s a silent number’, ‘…don’t have a mobile’, ‘can’t leave a work number’, or at the test drive ‘accidentally’ give the wrong phone number.
Even after continual phoning, and when you end up buying from a different dealer, the sales person (who has missed out on the deal) will then give you the bad news. When you tell them you bought elsewhere (at a very good price of $34,550) they will say, ‘Oh no, you shouldn’t have paid any more than $32,000 for it!’ This is designed to make you feel as bad as the salesperson, who lost out too.
Car Dealer Tactic #7
The End-of-the-Month trick
This trick deserves serious consideration. It is the most elaborate trick of this type. Manufacturers know that companies often buy around this time of year for accounting purposes. They therefore rarely offer any factory discounts, and they sometimes increase their retail prices to take advantage.
No matter when, where or which car dealership you may stroll into, there is always a reason to feel ‘lucky’, according to the keen sales person. Early in the month, they might say they missed their target last month and are desperate to make it up. During the middle of the month, ‘the boss has told me to push out more cars or I’ll never reach my target this month either’.
The time of month may matter to some dealers sometimes, though; it never matters to a car broker. Beware of this because you may end up paying more than you expected. Don’t fall for tactics like this that appeal to your feelings, such as compassion and guilt or regret. Remember when buying a car, you have to keep a steady head and not let your emotions rule over.
Where to look for good used cars with good prices? Go online to consumer.vic.gov.au and find out the information you need before rushing headlong into the ‘big end of financial year deal’. Or log on to OzFreeOnline.com, Australia’s largest car classifieds site, offering people a good venue to transact any business related to cars.
Everyone would like to get a cheap used car at a good condition, but before doing so there are many things to consider. First and foremost thing is to ensure that if the car can be used for long travels daily, all the members of the family, as the needs and requirements differ from person to person.
Once the used car selected satisfies the requirements, the search is further more narrowed down to the category of the car like the features, colors and brands. If the person is not very choosy, he will end up buying a cheap used car easily, but if he is choosy it may take time to get such a car. The safety and reliability features should not be overlooked at any cost as the safety of the person and the whole family is at stake. It is good to check the safety aspect in various ways and with varied collision situations before buying a cheap used car.
Once all the requirements of the person get fulfilled in choosing a cheap used car, the next important aspect to be seen if it is in a good working condition, this aspect is not checked it can cost more on maintenance and repairs. There are certain techniques to check the quality of the car. The used car can be checked with the help of the vehicle’s history or a personal inspection of vehicle to see if any of the parts are damaged, if it had been repainted, if it has any bend or corrosion, if the engine oil is in a good condition, if there is a blown gasket, wear and tear of all the tires etc. The important things the person buying a used car has to check one if the car he is purchasing has met with any kind of accidents or if the car is reported as stolen, all the details about the previous owner, if the mileage is rolled back or not etc.Cheap used cars buying sources:
Cheap used cars in good condition can be purchased from car dealers who sell used cars or from government auctions or from police used car auctions etc. People who buy new cars dispose their old ones with the car dealers and these car dealers in turn sell the old used cars to people who are looking for cheap used cars. Before buying cars from the dealers it is good to research a little bit on the car values and offers so that the cars can be bought at a fairly cheaper price.
Some people buy cars using car loans and for some reasons do not make payments on the right time. The financial institutions repossess the cars for the money over due from persons, who got the loan. In such cases, the car may even be a brand new one. This can be utilized by the person who is looking for cheap and good used cars. Some may even opt for used police cars, as they may be in very good condition.