Buying Used Cars

Buying a used car can sometimes be even more complicated than buying a new car.  That's because unlike a new car, you really need to do a lot of homework before buying used cars and that takes time.  But by spending some time doing a little research now, you might be saving yourself a lot of headaches later on.

Researching Used Cars

Before buying any car - new or used - you should first think very carefully about your driving habits:

• Do you need a car to drive short trips to local retail stores?
• Do you need a dependable car that will reliably make the drive 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 when starting your research.  You also need to think about what you really need in a car:

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

While some of us might dream about sitting behind a sporty little red two-seat sportster with the top down; that might not work so well if we are going to used the car to drive our daughter and her friends to softball practice.  The important point to remember here is there's a reason that you need 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 that will break down frequently.  What you really mean to say is you need an inexpensive car 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 75 years.  When you think about how long cars have been manufactured, that is a pretty astonishing record.

The Blue Book values used to simply be a single value that gave you a pretty good idea what the car is worth used.  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 chances are 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 - and that's a good thing 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 may 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 that 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've got 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've even got 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.  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 pretty detailed information on the repair records of used cars.  A lot of libraries will carry this magazine, so it is just a matter of figuring out which issue the most recent information appears in.

J.D. Power 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, 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 repairs.  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.  But even if you buy a car "as is" from a dealer, you've 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 expected 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 new enough, 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 on this topic, then take a look at our article on Used Car Warranties.

Car Safety Rating

Finally, if you're thinking about buying a used car, then you should make sure the car is not only reliable but safe.  If you think about our 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.

There is a lot of safety information that is freely distributed and important to any consumer.  In our article on Car Safety Ratings, we not only list out some of the safest cars on the road today, but also tell you where you can go for more information on this very important topic.

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