Buying Used Cars

Buying a used car is often more complicated than buying a new car.  In addition to the research you'd conduct when purchasing a new car, you need to understand a vehicle's reliability information too when buying a used car.  Fortunately, the time spent doing a little research now will save you a lot of headaches later on.

Researching Used Cars

Before buying any car, new or used, you should first think about your high-level driving needs.  You can start that process by asking yourself these questions:

• Do you need a car to drive short trips to local retail stores?
• Do you need a dependable car that will reliably make the commute back and forth to work each day?

It's important to think about how you're going to use the car, because that information is vital to understand when conducting your research.  You also need to think through some of the features you'll need in a car:

• How many passengers should the car hold?
• Do you need a lot of cargo space for storing luggage?
• Does the design of the car need to be reflective of your personality?

While some of us might dream about sitting behind the wheel of a little red two-seater with the top down; that type of car is impractical if it's going to be used to drive our daughter and her friends to soccer practice.  There's a reason that you need to buy a car.  Make sure the car you buy fulfills that need.

You'll also want to make sure the car you buy is a good value.  Don't ever tell someone you need a cheap car, because that's not what you need.  Cheap cars are just that:  cheaply made, inferior products, which will break down frequently.  What you really mean to say is that you need an inexpensive car; one that is a good value.

Used Car Values

If there is one company that really shines when it comes to figuring out used car values, it is Kelley Blue Book.  In fact, they've been helping people buying used cars for over 85 years.  When you think about how long cars have been manufactured, that is a pretty astonishing record.

The Blue Book values used to be a simple single value that gave you a pretty good idea what the car is worth in a used condition.  Today, they have refined their system to include three different values for used cars:

• Trade In Value - the price that a seller might expect to get for a used car when trading it in at a dealership.
• Private Seller Value - the price that a buyer might expect to pay when buying a used car from an individual or private seller.
• Suggested Retail Price - the price that a dealer might charge when they are selling a used car.

Leasing or Buying a Used Car

If you're thinking about buying a used car, then there's a good chance you're on a tight budget.  With the growing popularity of leasing cars, it's a good idea to keep an open mind to leasing versus buying a car. The sharp rise in the popularity of leasing cars has resulted in a huge inventory of gently-used, certified pre-owned vehicles.  That's a good trend for consumers looking into the used car market.

If you haven't explored this option, you might want to take a look at our article on used car leasing.  There you will find a lot of information on lease terms and conditions, as well as details about insuring a leased car.

Used Car Loans

If you've made a decision to buy a used car, then you also want to evaluate your options when it comes to used car loans.  The lending marketplace is competitive, so it pays to shop around.

Don't be disappointed if the interest rate on a used car loan is higher than those you've seen for new cars.  That's usually due to the fact lenders have to spread their fixed costs over smaller loans.  A new car loan is typically larger than a used car loan.

You can also expect shorter terms (time the loan is outstanding) on a used car loan.  That's because the overall expected lifespan is shorter with a used car.

Car Loan Calculations

Finally, if you're looking for some quick information on car loans, we can help there too.  We have a complete line of car loan calculators that range in sophistication from our simple car loan calculator, which enables you to calculate monthly loan payments, to our buy versus lease a car tools.  We even have a calculator dedicated to figuring out how large a car loan you qualify for.

Quality Ratings of Used Cars

Once you've figured out the kind of cars you want to research, and how much you can afford to pay, then you need to find a reliable source of information on used cars.  There is a lot of good information that you can find for free.  There is no doubt that your local library will carry consumer magazines that have rated used cars too.  This cannot be emphasized enough, if you are buying a used car, then you should take a look at the repair record of those cars already on the road.

Dependable Cars

Consumer Reports is one magazine that provides very detailed information on the repair records and reliability of used cars.  Many local libraries will carry this magazine, so it's just a matter of figuring out which issue has the most recent information.

J.D. Power and Associates also provides a quality rating for many used cars.  J.D. Power quality ratings can currently be found on the Kelley Blue Book website.  Our article on dependable used cars helps to summarize some of that information.  There you'll find information on luxury cars, minivans, SUVs, trucks, as well as sedans.

Used Car Warranties

If you're buying a used car, then you'll also want to have some reassurance that you'll be able to drive the car for awhile before it's in need of repair.  In the used car marketplace, you'll find several different types of warranties offered:

• "As Is" Used Car Warranties - this first type of warranty is an "as is" warranty, which is essentially no warranty on the car at all.  Even if you buy a car "as is" from a dealer, you have got some protections under the law; including what are called implied warranties.
• Implied Warranties - any car sold is expected to meet reasonable quality standards.  Implied warranties mean that you bought a car, and you expect to be able to drive it.  If the car breaks down shortly after you buy it, then you might be able to claim an implied warranty, or a warranty of merchantability.
• Manufacturer's Warranties - If the used car is newer, it might be covered under the original manufacturer's warranty.  If you are buying a used car with a manufacture's warranty, then make sure you get a copy of the warranty documents and understand what is, and isn't covered.
• Extended Warranties - extended warranties are frequently found on used luxury cars, which are often sold as certified pre-owned vehicles.  Since these vehicles are returned to the dealership and sold as pre-owned, the automobile manufacturers will often extend the car's warranty past the original expiration date.

If you'd like to find out more information on this topic, then take a look at our article on Used Car Warranties.

Car Safety Ratings

Finally, if you're thinking about buying a used car, then you should make sure the car is not only reliable, but also safe to drive.  If you think about the expectations of a car, it should be twofold:  They need to be able to transport us from point A to point B, and they should be able to move us in a safe fashion.

In our article on Car Safety Ratings, we not only list some of the safest cars on the road today, but also tell you where to go for more information on this very important topic.

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