Can someone give me the complete explanation on used cars?

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Nomaken
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28 Jan 2006, 9:24 am

Can someone give me the complete run down on how to buy a used car? What the price ranges are for various qualities, what i should know that i don't know i'm supposed to know, where to get them, what to be aware of under the hood that is important. Ect.


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pyraxis
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28 Jan 2006, 9:50 am

I would also find this info highly useful.



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28 Jan 2006, 9:55 am

If there is a particular model of car you want, there is likely a discussion board somewhere on the net where you can ask owners what sort of problems to look out for.

Also, when viewing the car, look for large/small or inconsistent gaps between body panels and the doors, hood, trunk. Gaps large or small are usually an indicator that it was in an accident.....run away from that car unless the owner can give a good explanation with documented proof that the accident was just cosmetic or whatever.

Lift up all the carpeting in the trunk....down to the bare metal (do so in the cabin if possible), check for mud, water stains or anything that looks like water may have been there.......If there is evidence of any of that, run away screaming like a little girl from that car!

Also, if your buying from a dealer, they are required by law to give you the name and address of the previous owner if you ask for it.
I got the previous owners info on an old VW I had, called them and asked them about the car. They had no issues with the car and it made my decision to buy the car.

Toyota, Honda, Nissan are usually the best bet when buying used IMO. You'll pay more for a used Toyota, but the quality is there.


Also check out..... www.kbb.com & www.edmunds.com


Hope this helps.



06xrs
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28 Jan 2006, 10:55 am

Cars.com is another great site for doing research and they have links to Kellybluebook.com to get values based on condition. Also Automotiveforums.com has a forum for every make and model, although some are more active than others.

The price of a car used depends a lot on how much it was new. I saw a Ferrari Testarossa ($100K+ new) that needed a front fender for $30K. Of course $30K Would easily buy a new Camry or Accord, so determine your price range first then see what's available for that amount and decide from there. Although you can get taken, for the most part you get what you pay for.

Cars are my primary obsession so if there are some that you are particularly interested, post it or pm me and I can give you some specific things to look for.



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28 Jan 2006, 7:37 pm

1) For finding fair prices for a vehicle, you look up the blue book value. You should do this at a bank or on the internet rather than at a car dealership as they carry a book which inflates the value. The dealer book is usually black where as the regular book is orange. The regular book can be found at places such as your local bank (who uses it to determine loans) and the library. Site such as Kelly's Blue Book (do not know the link) also give accurate values.

When looking at the values, you get 3 values - Loan Value, Trade-In or Auction Value, and Dealer Value. The Dealer Value is the price that a dealer will sell the car to you "in mint condition". The loan value is the maximum amount a bank will loan you for the vehicle, and the trade-in value is what a private seller would sell it to you for or what a dealer would pay for the vehicle at the auctions.

There are also other values that change the price depending on the options the vehicle does or does not have.

2) Once you have the values of the vehicle or vehicles you want, you have to determine where you will purchase the vehicle from. Purchasing from a dealer means you pay the inflated dealer price but most of the time (see number 3 first), the dealer has put the vehicle in pristine condition and fixed any known issues before putting the vehicle up for sale. If you purchase from a private person, the vehicle is cheaper and you have a more willing seller (they only have one vehicle to get rid of and by the time you show up, they will pratically give it away due to the hassle). The issue for a private seller is that the vehicle can be in any condition.

Once you decide where you will purchase the vehicle, look for it. At a dealer, look a a few on the dealers lot and do not be afraid to test drive one. Do not be afraid to walk away either. Same goes for a private seller. Realize however that you will not find the color you want unless you are willing to look high and low or wait. That may not be a problem with a dealer if the dealer is connected to a network and can find another dealer willing to part with a vehicle that you want.

3) By this point, you have found the vehicle you wanted. Before you let the sales person or seller have you sign a purchase contact, get a carfax report on the vehicle using the VIN (Dealer should be able to get it for you, go to Carfax.com if it is a private seller) and take the vehicle to a mechanic of your choosing to inspect the vehicle.

The carfax report costs about $50 but will tell you the service history of the car and will tell you if the title is considered a salvage or parts car from another state, even if the current states title does not mention that. It is even more important now to do this in the wake of hurricane katrina as many flooded cars are being moved to unsuspecting markets by scam-artists who then get the title "Cleaned"

The mechanic will cost another $50 but will be a god send when it comes to negotiating. The mechanic will check out each system and give you a list of what is not working or what is about to break. They also know issues with certain vehicles (and can determine things based on mileage) that will also work in your favor.

4) You have the reports in hand, now time to negotiate. Before doing that, you should have gone to your bank and applied for a loan. Even if you are purchasing from a dealer, I would suggest financing from a local bank. The interest rates will be better and they can get you approved faster. If you have credit problems however, a dealers finance department can usually find someone who will give you a loan. Be prepared to pay however. You can also get pre-approvals on loans before shopping for a car so you know how much you can spend.

5) Now you can negotiate. Use the mechanics list and carfax reports to help you. In the case of needed repairs, you can either have the dealer/current owner fix the vehicle, or you can get the purchase price lowered. You should also know what the vehicle is really worth and be ready to walk away if the other side refuses to budge.

6) Once you agreed to a price, if it is a private sale, you can put a down payment on the vehicle (make it cash or cashier's check), get the bank loan, and most times pay the person from your checking account and they will give you the vehicle. If it is a dealer, you sign a legally binding purchase contract, get the financing, and then on the closing date, give the dealer the money and they give you the vehicle. Before taking the vehicle, visit your insurance agent so that you have insurance on the vehicle when it is transfered to you.

7) If you purchase from a private seller, you have to transfer the title, plates, etc yourself. Requriements vary by state and I cannot possibly list them all. If you are buying from a dealer, they will request your insurance agents phone number and they will do all of the registration, title transfer, required work.

After that, enjoy

I hope this helps and was not too long for anyone.


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Liorda
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28 Jan 2006, 7:39 pm

Kelly Blue Book for used cars.

http://www.kbb.com/kb/ki.dll/ke.kb.sz?k ... edCars;slp


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ljbouchard
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28 Jan 2006, 8:24 pm

Thanx Liorda :D


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aspiesmom1
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30 Jan 2006, 4:55 pm

If you do purchase from a private owner, keep in mind it is a FELONY in many states to understate the amount you paid for the vehicle when completing the transfer in order to lessen the fees and/or taxes to be paid.

If you are buying privately, aside from the obvious exterior flaws - rust, dents, etc; be sure to pull all the dipsticks. Make sure the oil is reasonably close to full and not so thick it looks like dark whipped cream. While the car is cold loosen the radiator cap and look inside, if you see something that looks like mayonaisse, say thanks but no thanks.

When you start the car, before actually *starting* it, turn the key so you can see all the idiot lights. Make sure they light up. People are famous for just pulling the light bulbs out so you don't see it light up while driving.

Don't panic over the "check engine" light. Many times it just means there's a vapor lock in the gas tank and the gas door needs to be opened and closed properly (in newer cars). Most local parts stores (like Auto Zone) will check the codes for free, do it during a test drive.

Hope this helps.


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06xrs
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31 Jan 2006, 12:29 am

I wouldn't put too much stock in the carfax reports. I ran the cars I owned once and not one out of the 3 was accurate.