Buying a Second Hand Car

When shopping for a car, one alternative that often rewards the buyer with a great value is buying a secondhand car.  Once driven off the showroom floor, new cars often lose a significant amount of their resale price.  This is especially true during the first two years of ownership.

This loss in resale price is commonly referred to as a car's depreciation in value.  After the first two years, the decline in value begins to slow.  This is one of the reasons buyers are often able to find bargains in the secondhand car market.

Purchasing a Secondhand Car

The biggest concern many people have when buying a used car is the wear and tear put on the vehicle by the previous owner.  In fact, many buyers shy away from secondhand cars because they're concerned about the care, or lack of care, provided by a previous owner.  An equally important concern is the number of repairs a used car will experience once purchased.  We all know how costly car repairs can be, and no one wants to buy a car, and then spend another $1,000 on a repair.

We're going to address both these concerns by outlining a process that should help to minimize the fear of buying a secondhand car.  The process requires a little bit of research, but putting the time in now should help you avoid problems later on.

Researching Used Cars

We're going to assume that you've narrowed down the field of car categories to the ones that are going to meet your driving needs.  In other words, you're not looking at a two-seater coupe, when you really need to own a minivan.  You should also avoid falling in love with just one particular make and model of any vehicle.  You need to keep your options open when buying a car.  Research also takes time, but the rewards are worth the effort.

Secondhand Car Ratings

Each year, Consumer Reports recruits about 250,000 of their magazine subscribers to participate in a survey detailing their experiences with used cars.  From those surveys, Consumer Reports is able to compile a rating system of used cars.  If you want to find out how well a secondhand car is holding up, or how reliable you can expect a car to be, this is a great resource.  Most local libraries carry copies of this magazine, or you can subscribe to the service over the web.

Dependable Used Cars

A second source of car ratings is J.D. Power and Associates, which gathers information from around 50,000 surveys they conduct on used cars.  From this information, they compile lists of dependable used cars.  They don't have ratings for all cars, like Consumer Reports does; just a concise list of the best performing used cars on the market today, grouped by category.  This list includes passenger vehicles such as sedans, light trucks, sports utility vehicles, and minivans.

Recall Information

The third stop you want to make is to the recall history on the car you're thinking about buying.  The National Highway Traffic Safety Administration is responsible for compiling a list of manufacturer's recalls on automobiles.

The NHTSA website also has information on compliance testing, defect investigations, and consumer complaints.  The process works like this:  If they receive enough consumer complaints about the same problem with a car, then they may launch a defect investigation.  If their investigation reveals that a car component has a defect, then they will work with the manufacturer to see if a recall is necessary.

You should also look for patterns of information in their consumer complaints area.  Keep in mind that all used cars have problems.  But if you see a lot of complaints for a model you're considering buying, then you may want to factor that information into your purchase decision.

Test Driving Secondhand Cars

Now that you've found a car that satisfies your needs, and the make and model seems to have a fairly reliable repair and safety history relative to other vehicles you're considering, it's time to take a car out and test drive it.

If you want to listen to the stereo, do so before you start to drive the car, or at least turn it completely off at one point during the drive.  If the car radio is playing during your test drive, you won't be able to listen for clues the car has a problem and might be in need of a repair.

Listening for Mechanical Problems

You want to listen for noises while the car is accelerating, slowing down, and cruising.  Do you hear excessive wind or tire noise?  Is there a rattle in the car's dashboard?  Does the car sound unusually loud when you accelerate?

You also want to feel for things too.  Does the steering wheel shake while you're driving?  Do small bumps seem like craters?  Does the brake petal shake when you press down on it?

You also need to examine the car with your eyes.  Does the interior or exterior wear seem in-line with the car's mileage?  Has the car been repainted (which can be a sign of a previous accident)?  Do you see blue smoke coming out of the tailpipe, or see vapors coming out from under the hood of the car?

Paying Car Mechanics to Look for Problems

Once you've driven the car yourself, make some mental notes, and take the car to an automobile mechanic that you trust.  Reputable used car dealerships will let you take the car to a mechanic to look for possible problems, as should private sellers.

When you talk to the mechanic, tell them everything that you observed during your test drive.  This gives the mechanic an idea of what problems might exist, and allows them to better focus their attention.  Most mechanics will charge a small fee to evaluate the car, but the money is well spent if they find a serious problem with the vehicle.  Their report can also help you get a fair price when you're negotiating with the seller.

Secondhand Car Warranties

Finally, we'd like to talk briefly about used car warranties.  If you purchase the car from a private seller, then you're likely to buy the car "as is."  Obviously if they've misrepresented the car, such as changing the odometer reading, then you can file a claim or bring a lawsuit against the previous owner.  But this example demonstrates the balance of risk and reward when you purchase a secondhand car.  If you buy through a private seller, then you might get a lower price, but you are limited in terms of warranties.

Dealerships and Extended Warranties

If you're purchasing a car through a dealership, then implied warranties, and warranties of merchantability, work in your favor.  Car warranties in the secondhand market can be a bit confusing.  In fact, we have an entire article dedicated to Used Car Warranties.

To summarize some of the information found in that article, you need to look for the car's Buyers Guide.  That document contains important information regarding repairs, warranties, and other rights you have as a buyer of a used car.  Pay careful attention to that information, and if you negotiate any terms that are different than those appearing in the Buyers Guide, make sure you get those new terms in writing.

The article also talks about manufacturer's extended warranties, which are frequently offered with certified pre-owned vehicles.  An extended warranty offers buyers of secondhand cars an important layer of protection against costly repairs.

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