Public Auto Auctions Aren’t Necessarily A Good Deal
on May 02 in Buying, Used Cars tagged auction, Used Cars by jasonl
First of all, when you buy a car at auction, you’re buying it “as-is.” While auctions will advertise that they’ve inspected all the cars, these inspections are usually cursory and unreliable. When I worked as a used car manager, I often found major problems on vehicles that auction inspectors were supposed to catch (frame damage, major mechanical issues, etc.). I always paid for frame and mechanical inspections, and because I worked for a dealership and had a relationship with the auction, I was able to hold them accountable for poor inspections (and get my money back). As an individual consumer, you probably won’t have that kind of leverage. If you buy a lemon at a public auto auction, you’re probably going to be stuck with it.
Secondly, auctions require you to buy a car pretty quickly. Even as a used car manager tasked with buying dozens of vehicles a week, it was a hectic process. If you’re not very careful and attentive, you can make a mistake. I’ve failed to notice damage and bid too much, and I’ve even had auctioneers “run me up” with phantom bids, etc. Auctioneers are clever and they’re paid based on how many cars they auction off. They WILL try to trick you.
Finally, “public” auctions are usually filled with cars that licensed dealers had no interest in. Dealers like to buy cars they think they can sell for a profit – everything else they ignore. Cars that are ignored by dealers are usually taken to a “public auto auction” where they’re sold to less knowledgeable consumers. (This is only true of most public auto auctions, but true government auto auctions are made up of government fleet vehicles that can be bid on by anyone). If you decide to buy a car at auction, here are some tips:
1) Decide what kind of car you want before you go. Before you start buying cars at auction, you should know what you’re at the auction to buy. A lot of big mistakes are made when you buy a car you know nothing about, so choose a specific make and model (i.e. a 2002-2006 Silverado 4×4), and then only buy that model. Make sure you know what to look for, what to check for, etc. Also make sure you know what to pay. Check edmunds.com, kbb.com, and nadaguides.com for price info. Don’t bid on a car unless you know everything about it – that’s how you make a mistake.
2) Don’t feel like you need to buy when you go to the auction. One of the biggest mistakes first time auction attendees make is feeling pressure to buy. My advice is to go to a few auctions and just watch – don’t bring any money with you. Just watch and learn. You’ll be amazed at how much you can learn watching a few auctions.
3) Leave your ego at home. If you find a car you like and you start bidding, you might have a little competition. Nice cars always have a few bidders, and someone might decide they want the car more than you. If a bidding war erupts, don’t let your ego get the best of you. Don’t spend more than you should just to beat another bidder. Besides, that ‘other bidder’ might be a shill – someone who works for the auction whose job it is to artificially raise prices. It’s illegal, but it happens all the time.
4) Look in your local new car dealer’s “back lot.” Buying at an auction is hit or miss – you need to be very careful and a little lucky to find a good car. But buying an inexpensive car out of your local dealer’s back lot is easier and safer. Most new car dealers will sell you a car out of their back lot so long as you agree to buy “as-is” – they’ll even let you take it to a mechanic before you buy.
I’m not a big fan of buying at an auction – you can almost always find a better deal on a dealer’s lot.
Used Car Value: How Much is a Used Car Worth?
on Jan 30 in How to Buy tagged car buying tips, Used Cars by jasonl
We recommend three car valuation guides that are popular with both consumers and auto industry experts: NADAguides.com, kbb.com (Kelley Blue Book), and Edmunds.com.
When it comes to a used car, each of these guides will give you two numbers – the wholesale value (also known as the trade-in value) and the retail value.
Wholesale or Trade-In Value: This is what you can expect to get for a vehicle that has normal wear and tear. It’s usually a fair price for vehicles in average condition for their mileage and age. Because this is an average, half of the vehicles on the road will be worth more, and half will be worth less.
Retail Value: This is what you’ll pay for a vehicle that is completely free from defects – it has been 100% refurbished, and it’s as nice a car as you can hope to find for that year and for that mileage. Dealers and private individuals will try to charge full retail value, but keep in mind that less than 3 percent of the cars in the United States are in such excellent condition and worth retail value. In other words, retail value is usually the most you should ever pay for a used car.
When figuring out a fair price for a particular vehicle, it’s important to remember you must adjust for miles and condition. Here are some of the things you’ll need to account for:
- The average annual mileage in the U.S. is 12-15k miles. If the car you’re looking at or trading in has more than twice the average, you should expect to deduct more than the recommended mileage deduction. It’s commonplace to double or even triple the mileage penalty for extreme mileage situations (this is particularly true with NADAGuides).
- If the vehicle needs tires, deduct $400-$600 from the value of the car– if you’re not sure how much you can always call the local tire store and find out.
- If the vehicle needs a windshield, deduct at least $300 from the value.
- If the vehicle needs minor scratches repaired or small dents knocked out, that again will cost a few hundred dollars.
- If you can stand five feet away from the vehicle and see dents or scratches on the car, you should have a body shop look at it to get a sense of how much it’s really going to cost. Believe it or not, a seemingly minor cosmetic flaw can run into the hundreds or thousands of dollars.
- If you’re looking at any substantial body damage, get a second opinion. Body estimates can vary widely.
- Whatever the damage is, it’s best to have an estimate in hand. That will make determining the actual value of a car much easier.
It’s important to remember that you should be just as aggressive valuing your own car as you would a car you’re trying to buy – fair is fair.
The process of valuing a car using kbb.com or Edmunds.com is only a guide. The actual price of the car will be determined by factors such as the local market, the time of year, and how available that type of vehicle is. When you come up with a value, don’t feel like that is the only acceptable one. Too many times people get caught up in a specific number – instead, tell yourself that if you can get within $500-$1000 of the value you’ve determined, you’ve done pretty well. Besides, if you’ve done your homework and you’ve followed all our car buying negotiation tips, you’re going to get a good deal.
As always, take your time when buying a used car. Do your used car research, get multiple used car financing quotes, and feel free to contact us with your questions.
7 Tips For Buying A Car From A Private Seller
on Jan 24 in Buying tagged car buying tips, Used Cars by jasonl
Buying a car from a private party can be a great way to save some money. Millions of people buy and sell their cars privately every year, and 98% of the time the transaction is honest and forthright. Nonetheless, it’s imperative that you that you follow these tips so that you don’t get taken advantage of.
1) Be Suspicious: We’ve heard unbelievable stories about people getting taken advantage of by private sellers. People will lie about how they got the car, who owned the car, why they’re selling, etc. Don’t always believe what the seller tells you: take everything with a grain of salt.
2) Take your time: If the person trying to sell you a car is a con artist, they’ll want to consummate the sale as quickly as possible. If they’re trying to “pull a fast one”, they’ll offer you anything to get you to buy immediately.
3) Ask a lot of questions: If a person is trying to sell a car that doesn’t belong to them, they’re going to have a hard time answering questions like “when did you buy your car,” or “has it ever been in an accident,” etc. It’s also smart to ask lots of questions because you’ll be surprised what the seller will volunteer. Just make sure that you listen to the answers carefully.
4) Get the car inspected before you buy: There’s absolutely no reason why a legitimate private seller wouldn’t let you take their car to a mechanic to have it looked at. If the seller is trying to hide something from you (like a bad transmission, flood damage, etc.) they won’t let you get the car inspected. If you can’t get the car inspected, don’t buy it.
5) Compare the seller’s ID to the title and registration: Before you buy from a private party, it’s important to compare their ID to the car’s title and registration. Everything should match, but if it doesn’t, you should tell the seller you need to meet the actual owner (the person on the title and registration). If you can’t meet the actual owner, you might consider walking away. If you buy a car from a person whose name isn’t on the title, you could be buying a stolen vehicle.
6) Ask for emissions test records, inspection records, etc.: You will need these records to register the car after you’ve bought it.
7) Complete a Bill of Sale: A Bill Of Sale is a good idea – it will help protect you from any future problems (in case the sale was illegitimate), it’s a good record to have, and it may be necessary for insurance, registration, etc.
As always, take your time when buying a used car. Do your used car research, get multiple used car financing quotes, and feel free to contact us with your questions.
What are Certified Used Cars?
on Jan 15 in Used Cars tagged Certified Used, Used Cars by jasonl
Listen to this article.
Generally speaking, certified used cars are:
- Vehicles that have passed a thorough inspection which makes them eligible for an improved warranty and special financing.
- Less than five years old with less than 50,000 miles.
- The certifying authority (usually the dealership) must have made sure that all the maintenance is up-to-date, which means that all the oil changes and transmission flushes, etc. (normal maintenance) should be complete.
- The vehicle’s wearable parts (brake pads, tires, etc.) must have at least 50% of their life left.
Once the inspection has been done and all the maintenance is completed, the dealership will declare the vehicle “Certified”. Certified used cars have a better warranty than a normal used car, and often times they qualify for better than average used car financing rates.
In most cases, certified used cars are a good deal, and you should buy one if you can. However, before you buy a certified used car there are a few things you need to watch out for.
1) Certified used cars that are under one year old are almost always used rental cars.
Rental cars aren’t necessarily bad: they’re usually well maintained and an excellent value, but they’re not for everyone. Check out our advice about buying used rental cars if you’re not sure.
2) Remember that not all certifications are created equal.
If you’re at Dealin’ Dave’s car lot and they have certified a car, that might not mean anything. Dealin’ Dave’s certification may just be a sales gimmick. It’s better to buy a vehicle that has been certified by an auto manufacturer like Ford, Toyota, GM, BMW, etc. They all have superior certification programs, better than you would find at any dealership.
Finally, before you buy a certified used car, always ask for the “vehicle certification inspection” report. The inspecting mechanic fills out this report, and it gives details of his/her opinion of the various parts and functions of the vehicle. Dealerships are required to keep these reports on file after they certify a vehicle, and a lot of times they also have to give you a copy when you buy the car. If the dealership doesn’t have this report (or if they won’t show it to you) go somewhere else.
As always, take your time when buying a used car. Do your used car research, get multiple used car financing quotes, and feel free to contact us with your questions.
Where Should I Buy a Used Car?
on Jan 07 in Where to Buy tagged Used Cars by jasonl
When it comes to buying a used car, there’s more to think about than just the type of car you’re going to buy. You also need to think about where you’re going to buy it. You have three options: you can buy from a private individual, an independent dealer, or a franchise dealer.
1. Private Individual
If you decide to buy from a private individual, you have some benefits. The pricing tends to be pretty reasonable, and you get to meet the person that’s driving the car. They’ll tell you its history and why they’re selling. A lot of times they’ll show you service records, and these things are all very valuable.
One of the big disadvantages with buying from a private individual is that you don’t know whom you’re dealing with – there’s a chance that the seller is a con artist. Another major disadvantage is that you don’t have any recourse if the car turns out to be a lemon.
2. Independent Dealership
The second option for buying a used car is to go to an independent dealership (usually these are small lots that only sell used cars). These dealerships tend to have a wide selection of older and specialty vehicles. Also, because they’re small, they have low overheads, so the pricing tends to be very good – better than a franchise dealership.
However, their small size means that they don’t have an image to protect – if they get some bad press, nobody knows who they are anyway, so it’s not a big deal for them. They’re also not well regulated – it’s just not efficient for the limited number of state regulators to spend a lot of time at the small dealerships.
3. Franchise Dealers
Your third option is to buy a used car from a big new car dealership, also known as a franchise dealer (because they’re a manufacturer franchise, like a Ford, Toyota, etc.). Franchise dealers have a few disadvantages – people don’t like to buy from them because they’re usually the most expensive (which is true, but if you follow our negotiation tips it won’t matter). Also, if you’re going to have a bad buying experience, it’s probably going to be at a franchise dealer – they’re more likely to pressure, manipulate, and/or ignore you simply because they’re so big.
Despite these negatives, the advantages to buying a used car from a franchise dealer are great. That’s why we recommend buying a used car from a franchise dealer. Here’s why:
- Franchise dealers are often closely regulated by state regulators, and they are subjected to annual reviews by the manufacturer they represent.
- If you don’t like the way you’re treated at a franchise dealer, you can call the auto manufacturer they represent and complain. You’ll often get results.
- Franchise dealers spend millions of dollars in advertising to build their public image. If they wrong you, threaten the dealer with bad publicity from local TV, radio, and newspapers. You can also try putting a sign on your car that says “So-and-So dealership lied to me”. It won’t take long before they do the right thing.
As always, take your time when buying a used car. Do your used car research, get multiple used car financing quotes, and feel free to contact us with your questions.
Should You Buy A Used Rental Car?
on Nov 19 in What to Buy tagged deciding what to buy, Used Cars, used rental car by jasonl
Used rental cars can be found on just about any car lot in America, and for good reason. They’re an excellent compromise between buying an older used car and buying a brand new vehicle. Used rental cars tend to have fairly low mileage, they’re almost always less than a year old, and they’re thousands of dollars less than a new version of the same car. Unfortunately, used rental cars also tend to be a little rough around the edges. Because rental cars are commonly used and abused by their renters, they tend to have more scratches, dents, dings, and general wear-and-tear than a non-rental car of the same age. But just because a used rental car has a little more wear, that doesn’t mean they’re not a good deal. None the less, they’re not for everyone. Here’s how you can figure out if a used rental car is right for you:
Note: Here’s some tips you can use to figure out if a car used to be a rental.
1) How long are you going to keep it?
Just like we talked about in Questions You Should Ask Before Buying Used, it’s important for you to know how long you’re going to keep the car you buy. Used rental cars tend to have more general wear, so they don’t hold up as well 5 to 10 years down the road as a privately owned used car. If you’re looking to buy something that will last forever, you probably shouldn’t consider a used rental car.
2) Do stains, smells, scratches, and dents really bother you?
While no one likes stains, smells, scratches, etc., most of us are willing to live with one or two. But the thing about used rental cars is that they almost always have more stains, more smells, more scratches, and more dents than you’d find on a non-rental used. Don’t get me wrong here – some used rental cars are in excellent shape (particularly those commonly rented by retirees). But if you’re sensitive to certain smells (like cigarette smoke, for instance), if you’re a neat freak, or if you’re just picky (which is OK as far as I’m concerned), a used rental car isn’t a good choice.
3) Are you simply looking for basic transportation?
If you’re not going to be emotionally attached to your car, a used rental car is an excellent idea. They often qualify for factory backed “certified used programs”, which include upgraded warranty coverage and special financing rates that often compare to new vehicle financing rates. Here’s a good example of what I’m talking about – I had a customer who was a traveling salesman. He spent most of his life in his car, driving from place to place. He needed a car that was fairly new in order to keep up appearances, as well as something that was very reliable (preferably with a warranty). But he didn’t really care about wear and tear, and he wanted to spend as little money as possible. For him, a used rental car was the perfect choice.
4) Are you credit-challenged?
If your credit is less than perfect, a used rental car is a good way to buy a fairly new car while keeping your monthly payments down. Used rental cars often qualify for factory backed “certified used” programs, which usually have aggressive financing available for people with bad credit. Used rental cars also tend to be easier to qualify for (credit wise) than other used cars because of the way they’re valued by the bank. If you’re credit challenged, make sure you investigate this option.
5) Rental cars are well maintained and tend to have few mechanical problems.
It may sound crazy, but rental cars are usually better maintained than cars owned by a private individual. Rental car companies don’t actually buy new cars from the manufacturers — they lease them. A company like Hertz will lease a new Toyota Corolla from Toyota, returning the vehicle to Toyota once it reaches a certain age or mileage (hence the terms “fleet vehicle” and “program car”). One of the terms of the lease is that the rental car company must perform all the manufacturer’s suggested maintenance, and must retain proof of doing so. Rental companies also tend to do a nice job of getting things fixed or adjusted under warranty.
As always, take your time when buying a used car. Do your used car research, get multiple used car financing quotes, and feel free to contact us with your questions.
Used Car Financing Basics And Tips
on Oct 01 in How to Buy tagged Financing, Used Cars by jasonl
If you’re like most Americans, you’ve decided to arrange financing in order to buy a car. There are lots of different lenders and financing options, but for the most part all used vehicle financing follows the same basic rules:
1. Used Car Financing Rates Are Higher
Used vehicle interest rates are higher than new vehicles for a few reasons, but the main reason is that used vehicles represent more risk to the lender. Used vehicles are more likely to suffer a major mechanical failure that could render them worthless (like a engine replacement, or instance).
2. It’s Harder To Get Financing For A Used Car Than A New Car
It’s much harder to acquire used vehicle financing than new vehicle financing, and the reason is really simple. New car manufacturers (like Toyota, Ford, Chevy, etc.) want to sell cars, so they’ll provide special financing to people to help them be able to buy. Additionally, new vehicles often come with rebates and/or special interest rates. If you have less-than-perfect credit, it might make sense to buy a new car.
3. Used Car Financing Is More Restrictive
Typically, most banks will not lend money on any used vehicle that has more than 100k miles or is more than 8 years old. These higher miles, older vehicles represent much more risk for the lender because they’re more likely to suffer a major breakdown. Older vehicles are also more likely to be stolen and “chopped up”, making recovery impossible. NOTE: If your credit is less-than-perfect, lenders will probably restrict you to a vehicle that’s not more than 5 years old and/or one that has less than 75k miles.
4. Credit Unions Are Great Used Car Lenders
In just about every case, your local credit union will offer the best financing for a used car. I strongly recommend you join whatever credit union you can. Credit Union interest rates are usually excellent, and they are much more likely to provide Often times you can join a credit union through your work (your HR department should know about this). If not, many credit unions allow people to join based on the neighborhood they live in. Search for a credit union to join here.
5. Leasing A Used Car Is Usually A Bad Idea
In my entire career, I have never seen a used car lease that made financial sense. Typically, used car leases are structured just like new car leases. There’s an upfront payment, a low monthly payment, and a low mileage limit. Unlike new car leases, however, every used vehicle lease I’ve seen had $500-$1,000 in extra fees. Finally, used vehicle leases aren’t usually substantially less expensive than a comparable new vehicle lease. For all these reasons, plus the fact that most used vehicle leases don’t protect a customer the way a new vehicle lease does, I don’t recommend anyone lease a used car.
For more information, check out our section on New and Used Car Financing.
Luxury Cars: Not So Luxurious When It Comes To Repairs
on Oct 01 in Bad Used Cars tagged Bad Used Cars, luxury car, repairs, Used Cars by Mark
If you’ve ever considered buying a late-model German luxury car, make sure you do your homework first. Recently we had the opportunity to see what happens when a 2000 Audi A6 has a power steering failure…
Our little Audi developed a power steering leak at one of the seals. This type of repair can be pretty easy in most cars, but our Audi is a little different. In order to replace or rebuild the power steering rack the sub-frame needs to be lowered to gain access to the rack. This operation is listed as a 12-hour repair in the automotive labor repair manuals. In most shops, the labor rate is about $100.00 per hour (as of Sept. 07) and that means the labor alone on this repair is about $1,200.00. But that’s just the start.
Removing the rack is only the first step in the repair process. Once the Audi power steering rack has been removed, we still need to fix the leak. This can be accomplished in one of two ways: 1) Replace the rack or 2) Rebuild. Amazingly, the cost of both of these options is nearly the same – about $1,000.00. So, most people opt to replace the rack. Now we’re up to $2,200 to fix a leaky steering rack, but we’re not done yet.
The Audi’s steering rack uses a very special power steering fluid called Pentosin CHF 11S. This is the only fluid that can be used in the rack, and it runs about $20.00. Per quart. The good news is that the system only takes 19 quarts. And the hits just keep on comin’.
So let’s recap: We’ve purchased a $1,000.00 power steering rack, $1,200.00 of labor, $380.00 of power steering fluid and a 10% shop supplies fee of $258.00. That’s a grand total of $2,838.00 (plus tax). Sounds a little scary I know, but our Audi is damn-near useless without power steering…
What’s the bottom line? While an Audi A6, BMW M5 or Mercedes Benz C class all sound like great ways to show the world you have arrived, they might empty your bank account. If a power steering rack repair can be this expensive and complicated, just imagine what an air conditioning repair will cost! Our advice, avoid used luxury vehicles whenever possible. With that being said please understand we don’t dislike German luxury vehicles. The German manufactures have excellent warranties on their new vehicles. Most new German vehicles cover all maintenance and repairs for the first four years or so. This type of coverage can give you real piece of mind — but the moment that the warranty expires, watch out! Things can get pretty expensive in a hurry.
Old Luxury Cars: Steer Clear If You Can
on Oct 01 in Bad Used Cars tagged Bad Used Cars, luxury car, Used Cars by Mark
Buying an old used car (anything over 10 years) can be risky, but buying an old luxury car can be very risky. In fact, I’ve seen more MAJOR problems with older used luxury vehicles than any other type of vehicle. The moral here is simple — don’t make the mistake of buying a nice older car (like a 95 Mercedes) when you could have had a cheap newer car (like an 01′ Toyota) for the same price.
When you buy an older luxury vehicle, you’re taking a huge risk. Although it’s really cool to tell your friends and family you just bought a late nineties Range Rover with leather and a V8, the reality is you’ve bought a vehicle that’s incredibly expensive to repair. The fact is that most luxury vehicles don’t age very gracefully. Repairs can be very expensive and irritatingly frequent on older luxury vehicles such as Cadillac, Mercedes Benz, Land Rover, BMW, Lincoln, Audi, Porsche, etc. The reason is really simple – these cars ALWAYS have expensive and complicated parts that require special training to replace. Often times, these parts have to be imported from another country. Add it all together and you’ve got an expensive repair that a lot of people can’t afford.
Think of it this way – when that luxury car was brand new it had all the latest and greatest features that money could buy. In fact, some of the features on that older used luxury car were cutting-edge at the time the car was built. Cutting edge features are always more expensive to repair and less reliable than older, tried-and-true features. That means that when you buy a used luxury car you’re buying a car that is more likely to break down and more expensive to repair as it gets older.
Compare a 100k mile 1995 Mercedes Benz E320 to a 60k mile 2001 Toyota Corolla LE. Both have a retail value of about $7k (as of Sept. 07). The Corolla should run problem-free for another 60k miles (if not much, much more). The E320 (a beautiful car) should run 20k miles before it likely develops a problem. Please understand — I’m not saying the E320 is a bad car. I’ve just found that on average, most cars run about 120k miles before requiring a major repair. Because the Mercedes is so expensive and complex, it will cost 2 to 5 times as much to repair as the Corolla. Because the E320′s miles are so much higher, that repair will occur MUCH sooner.
Either way, you buy a car for $7k dollars. However, with the Corolla, you get to drive it for years before you make a repair. With the E320, you get to drive a year or two before you make a repair. Oh yeah – when you do need a repair, it will cost a lot more with one than the other.
It doesn’t take a CPA to figure out which option makes more financial sense.
I know some of you are saying “Mark, I don’t want an 01′ Corolla. I want a Benz.” Please. You don’t have to tell me about that because I know. I want one too. But here’s the deal – people that can afford to buy a new Mercedes got their money because they made good financial decisions. If you ever want to own a new Mercedes some day, start now by making good financial decisions and saving money. Don’t buy a car you know is going to be expensive to repair and likely to break soon. Besides, if you really need a nice car to impress someone, you can always rent something…
Is That Used Car Reliable? – Five Ways To Find Out
on Oct 01 in What to Buy tagged reliability, used car checklist, used car inspection, Used Cars by jasonl
If you’ve found a used car that you think you might want to buy, use these tips to help determine if the car you like is going to be reliable.
1. Complete an Inspection.
We can’t emphasize this enough – inspecting a used vehicle is the best way to make sure you don’t buy a bad car. Luckily, you have lots of options when it comes to completing this step. You can use our Used Car Checklist — We give you a complete list of items to inspect, and we’ve got a complete step-by-step breakdown of every item on the checklist. You can also hire a local professional inspection service. Either way, this step is crucial. If you don’t inspect the car, you may come to regret it later.
2. Does The Car’s “Story” Make Sense?
When you’re looking at a used car, you always have to think “Why would someone sell this car?” Often times, the answer you get from the seller will make sense — the owner is moving, the car is too small, the car is too big, it’s no longer needed, etc. While these stories are often true, it’s important to remember that the seller could be lying to you. For example, a person selling a one-year-old car may tell you they’re getting rid of it because it’s too expensive. However, there’s a chance the owner is selling their car because it has some sort of incurable mechanical problem (in other words, it might be a lemon). Don’t get me wrong — you don’t have to doubt every person you talk to. Just remember to be a little skeptical when you find out why someone is getting rid of their car. If you have doubts about the seller’s motivations, feel free to walk away.
3. Generally speaking, there are a handful of features and options that reduce a car’s long-term reliability. Here’s a quick list:
a. Manual transmissions are always less reliable than automatics, simply because they’re certain to require a new clutch at some point in the future. If you choose to buy a used car with a manual transmission, make sure you can afford to replace the clutch at some point in the near future (just in case).
b. Vehicles with either Turbochargers or Superchargers are usually less reliable than vehicles without. Most likely, the person that owned the car when it was new drove it hard and fast. Turbochargers and superchargers also tend to be more maintenance intensive, so buy with care.
c. With the exception of some basic equipment, any vehicle with after-market parts and accessories is more likely to be less reliable than a standard vehicle. After-market (or non-factory) options like custom body parts, air intakes, suspension kits, performance chips, alarm systems, or expensive interior electronics could indicate the previous owner was harder on their vehicle than most people. If you see evidence of poor installation (like loose wires or missing pieces), it’s probably a good indicator that the parts weren’t installed professionally. Amateur installations are MUCH more likely to damage a vehicle.
4. Get a Vehicle History Report.
Before buying a used car, it’s important to purchase either a CarFax or AutoCheck vehicle history report. You only need one of these reports (they’re about $20), and you can use them to make sure the car you’re looking at wasn’t a “Manufacturer Buyback” vehicle (also known as a “lemon”), that it’s not a salvage title, see if the vehicle has any accident reports, open recalls, etc. While these reports aren’t completely accurate (sometimes I’ve found them to be missing data), they’re very good and easily worth the $20 you spend on them.
5. Hire a Professional Inspector
While our Used Car Checklist is very good for finding obvious problems with a vehicle, it’s no substitute for a professional inspection. A professional inspector (usually a former mechanic) will crawl under a vehicle, poke, prod, check fluids, etc. until he or she is satisfied the car is OK to buy. Professional inspections can cost anywhere from $75 to $200, but they often will travel to the vehicle to complete the inspection, and they’re almost always worth the expense. Unless the used car you’re looking at is almost brand new (say, less than 20k miles AND less than 2 years old), hiring an inspector is a good idea.
