Key Points to be Considered While Buying Cheap Used Cars

Everyone would like to get a cheap used car at a good condition, but before doing so there are many things to consider. First and foremost thing is to ensure that if the car can be used for long travels daily, all the members of the family, as the needs and requirements differ from person to person.

Once the used car selected satisfies the requirements, the search is further more narrowed down to the category of the car like the features, colors and brands. If the person is not very choosy, he will end up buying a cheap used car easily, but if he is choosy it may take time to get such a car. The safety and reliability features should not be overlooked at any cost as the safety of the person and the whole family is at stake. It is good to check the safety aspect in various ways and with varied collision situations before buying a cheap used car.

Once all the requirements of the person get fulfilled in choosing a cheap used car, the next important aspect to be seen if it is in a good working condition, this aspect is not checked it can cost more on maintenance and repairs. There are certain techniques to check the quality of the car. The used car can be checked with the help of the vehicles history or a personal inspection of vehicle to see if any of the parts are damaged, if it had been repainted, if it has any bend or corrosion, if the engine oil is in a good condition, if there is a blown gasket, wear and tear of all the tires etc. The important things the person buying a used car has to check one if the car he is purchasing has met with any kind of accidents or if the car is reported as stolen, all the details about the previous owner, if the mileage is rolled back or not etc.

Cheap used cars buying sources:

Cheap used cars in good condition can be purchased from car dealers who sell used cars or from government auctions or from police used car auctions etc. People who buy new cars dispose their old ones with the car dealers and these car dealers in turn sell the old used cars to people who are looking for cheap used cars. Before buying cars from the dealers it is good to research a little bit on the car values and offers so that the cars can be bought at a fairly cheaper price.

Some people buy cars using car loans and for some reasons do not make payments on the right time. The financial institutions repossess the cars for the money over due from persons, who got the loan. In such cases, the car may even be a brand new one. This can be utilized by the person who is looking for cheap and good used cars. Some may even opt for used police cars, as they may be in very good condition.

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January 15, 2010

Each year, out of all the vehicles bought in the U.S., 41 million are used cars compared to only 16 million new car purchases.

Since purchasing a car is the next financial investment made by US citizen other than housing, it is important to determine if buying a used car is worth your money.

1) CONS – Here is a list of the disadvantages of used-car buying:

* The options of cars are limited, so the search for the right vehicle could be lengthy.

* The buyers have no idea if the car was treated. Used cars usually have worn consumables such as hoses, tires, shocks, filters, fans and clutch.

* Although used car dealers provide a warranty, it is only limited to a couple of months unlike purchasing a new car with full warranty. Certain maintenance on your purchased second-hand car could be more expensive.

* Purchasing a second-hand vehicle would offer you a lower trade-in value.

* The main disadvantage of purchasing old cars is that it has an unknown quantity. Whether the dealer has worked the vehicle to make it attractive for the test drive, the buyers are still unaware of the repair bills, economical issues, and its reliable transportation.

* It is difficult to negotiate fair financing terms on an older vehicle.

2) PROS – On the other side, buying a used car could benefit the buyer in several ways:

* The original owner of the car received the depreciation hit. The market value of the new car decreases from year to year. An average 30% of its value within three years from the time it was bought, so buying their car would save you a lot of money.

* Unlike purchasing a new vehicle with high insurance fees, you will receive a lower cost of insurance if you choose to buy second-hand cars.

* Although buying new and used cars both provide loans, lease, or money-saving the majority of dealers who sell used cars often have shorter loan terms.

* If your investment is decided based on appearance and gas mileage, choosing a used car would guarantee the value and reliability it has provided over the years.

* A used car would provide your dollar more flexibility. Compared from buying a new car that would eat all your finances, buying a second-hand car would allow you to purchase other accessories such as air conditioning that would cost approximately US$200 to $900 extra.

Buying your used car could waste your money if you fail to do your research, compare dealerships, and be aware of the cars market value. Be a wise used-car buyer.

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January 4, 2010

While it is possible to get a great deal and a bargain car at an auction, buying a used car this way isnt always the ideal way to buy a car, there are better ways.

If it is your first time of buying a used car or you know very little about cars, then buying from an auction isnt advisable. Perhaps the biggest problem with purchasing a car from an auction is the fact that that you have very little cover to fall back on if there should be any problem with the car. This is usually due to the auction house issuing a disclaimer, which many do, which states something such as sold as seen.

While many goods are covered by the Sale of Goods Act, some of the cleverer auction houses can get around this by altering the conditions of the sale by taking away the buyers rights under the Act.

If you do wish to purchase a car from an auction then it is advisable to visit an auction house several times before actually deciding to bid on a car. This way you can get used to the terminology used and the way auction houses work. It is also advisable to take someone with you who knows something about cars when you do decide to buy.

Most auction houses will hold preview days where you look at the car up for auction prior to bidding. This will give you a good chance to have a look at the vehicle.

You would be wise to consider having a vehicle data check done, which is a service that checks a vehicles history. It will show up really valuable things such as whether the car has been stolen, or the mileage tampered with etc.

Finally, it is essential that you know your spending limit. Dont ever be tempted to go over that limit no matter how good a deal something may seem.

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Should I Buy From A Used Car Dealer Or Privately?

Buying a used car from a dealer or buying it privately, which is the best?

Both have their pros and cons and these should be weighed up against the other before any decision is made.

Firstly, going with a dealer you will have a wider choice over the cars on offer, certainly more than you would by going privately.

When buying from a dealer the car will have been cleaned and any faults will have been corrected and it will come with some sort of warranty. When purchasing privately you will be liable to fix any corrections and have to valet the vehicle yourself, plus you will have no comeback if something serious goes wrong within the first year.

Going with a dealer gives you plenty of time to check the car over in perfect lighting conditions; however you might feel rushed or pressured when looking a car over privately.

A dealer usually wont mind at all if you wish to bring in your own expert to look over the car as they will have nothing to hide. However when going privately it could be harder for you to get an expert to look over the car with you.

Dealers also can offer finance often with high interest charges but this still gives you the option of finance which may be beneficial to you. With a private seller, you will need to pay the money in full.

The downside to buying from a car dealer is that the car could cost you more than by buying privately. Also, you wont be able to interrogate the owner of the car through a dealer however when buying privately you have the opportunity to do so.

It really is all a matter of which you prefer as there are good and bad points either way, but the above tips will hopefully give you a better idea of which way to go when looking for your used car.

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December 31, 2009

Buying a vehicle can be quite an ordeal. You have to find the money in your budget for the new vehicle. Often you have to decide whether you want to sell your existing vehicle outright or trade it in. Then that decision is based on if you buy through a dealer or private party. You have to decide what you like.

Should you buy new or used?

Financial advisors say that the best way to get your money’s worth is to go used. However, the decision isn’t quite so simple. There are a lot of considerations.

Start by looking at your finances. If your only option is buying used, then do it wisely. But if you are choosing a used over a new, you have to remember that there will be no warranty of the vehicle in most cases. If the car needs a lot of maintenance, repairs or other modifications, you could find that your savings by purchasing used aren’t there.

Buying a used car is a gamble sometimes. You have to make sure that the title is clean. There should be proper documentation with the vehicle. Don’t trust anyone who says they will mail it to you. Never pay for a vehicle without a title, you could be in deep trouble later.

If you test drive the car and aren’t sold on it, you should keep looking. If you aren’t comfortable with the car, used or new, after driving it, it wouldn’t be a good deal for you. Don’t just buy the only car in your price range. Keep looking for one that will fit your budget and your needs.

When you buy used, you should take the car to a mechanic and have it checked out. This doesn’t guarantee that there won’t be any problems, it just helps you from buying a junk car. You might also consider doing a online check on the vehicle. You simply need the VIN and around $10. You should get a history of the vehicle. For example, we checked a vehicle out and found out that it was in the gulf when the hurricanes hit. It didn’t say it was damaged, but warned of the potential.

Even if you aren’t choosing to buy used — you have to — you should take the time to consider the purchase just as you would a new car purchase. Test drive several vehicles and shop around. Buy car trader and truck trader magazines and search online to see what other vehicles are bringing. If you are looking at purchasing a car from a dealer that is $5,000 cheaper than you have ever seen one priced for, you should probably be a little curious as to why it is so cheap. Make sure you know what the blue book value is and understand the process of buying.

When you buy a vehicle, you are spending money that you probably will never get back in your pocket. Do it wisely.

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December 29, 2009

The worst fear when buying that great deal of a used car is to have it break down the moment the sale becomes final. It happens, occasionally, where a buyer gets ripped off when buying a used car. Unfortunately , there are people out there that are just trying to offload their junk on someone else. It may seem like a good deal at the time, but later when you try to get the vehicle to pass a safety inspection you find out you have just ended up with a lemon. To ensure that you are not buying a lemon please read these tips.

Private Sales

Why are you Selling?

The first thing you want to do is ask the seller why they are selling their used car. Why dont they like it anymore? Is it not good enough for them? And for that matter whats so great about their new car? Put them on the defense, this way they will have to come up with a quick answer, if they hesitate they may have something to hide. It is best to ask this in person, so you can judge not only their tone, but also their body language. Most people are terrible liars. Also be wary if the seller tries to close the deal too quickly it could be a good sign they are trying to offload a piece of junk on you.

Known Problems

Ask the seller to point out all known defects and problems. When doing your own inspection if you find obvious problems that the seller did not mention there might be more wrong with the vehicle then they are letting on.

Stains, Leaks & Puddles

Look for stains and leaks in the driveway and garage. Rust colored stains indicate a leaking radiator Black or Brown puddles and stains indicate an oil or transmission fluid leak Purple puddles indicate transmission fluid leaks

Proof-of-Service

Ask for all the maintenance records, proof of oil changes and tune-ups. If they dont have it, for all you know the oil has never been changed.

Rebuilt Junkers

Look at all the seams in the car, the gaps should be the same distance apart at the top of a panel as they are at the bottom. Uneven gaps or small dents can suggest accident damage. The paint should match on all panels, and beware of body-kits and custom paint jobs. They may look cool, but they could be hiding damage to the chassis below. Look for over spray on plastic parts, around lights, mirrors and edges of the engine bay.

Remember taking the used car to get a proper inspection by a mechanic prior to purchasing it is the most effective way of ensuring you wont get stuck with a lemon.

Dealers

Dealers may also be purchasing used vehicles from the U.S., and may even unknowingly be selling a car that has had flood damage. Before you even leave the lot, here are some steps to see if the vehicle has had any flood damage.

Flood Damage

Look for rust on door hinges, spare tire, crowbar, jack, metal holdings under the seats, and any other metal inside the car. If you find any rusting in these places, it may have had extensive water damage and it is best to move on.

If you decide to go through a dealership, which is your best bet when purchasing a use vehicle, remember it is always best to ensure you are buying your used car from a reputable dealer.

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December 21, 2009

The Pros And Cons Of Buying A Used Car From An Auto Auction

Are you in the market for a new used car? If you are, have you ever thought about attending an auto auction? Each year, a relatively large number of individuals walk away with a quality used car from an auto auction and now you may want to think about doing the same.

Although it is nice to know that many have had success with auto auctions in the past, you may be wondering whether attending an auto auction is worth your time. To determine whether or not one is, you may want to think about examining the pros and cons of buying a used car from an auto auction. A few auto auction pros and cons are briefly touched on below.

Perhaps, the biggest pro or plus side to buying a used car from an auto auction is the price. Auto auctions are well-known for their more than affordable prices. Depending on the auto auction that you attend, as well as the car that you choose to buy, you could walk away with a quality used car for as little as a thousands dollars! In all honesty, you never know what treasures or quality used cars you will find until you attend an auto auction. That is why it is advised that you at least attend a local auto auction, even if it is just to see what one is like.

Another one of the many pros or plus sides to buying a used car from an auto auction is the choices that you have. In terms of the used cars that you have to choose from, it is not uncommon for an auto auction to include as many as fifty used cars or more. Many of these used cars include different years, as well as different car makes and models. In keeping with the choices that you have, you also have a choice when it comes to choosing a used car auction to attend. If you live in or around a large city, such as Chicago, you may have more auto auctions to choose from. You could choose to attend an auto auction that gives you the opportunity to inspect each vehicle or you can choose one that does not have any admission fees.

Although there are a number of pros or plus sides to buying a used car from an auto auction, there are also a number of downsides as well. The good news, however, is that those downsides may not even apply to you. One of the downsides or cons to buying a used car from an auto auction is that not all auto auctions have an inspection session. An inspection session is when you are able closely examine or inspect all of the cars that will be auctioned off. You should never buy a used car without thoroughly examining it first. This downside to buying a used car from an auto auction may not even be an issue, as long as you choose to attend a used car auction that allows you to inspect all of their vehicles first and they are out there.

Another con or downside to buying a used car from an auto auction is the fact that you arent really given any guarantees. Perhaps, that is why it is so important that you are able to inspect a used car before bidding on it at an auto auction. When you pay for and receive your used car, it is then yours and you are responsible for it, including all updates and repairs that may need to be made. It is difficult, if not virtually impossible, to find an auto auction house or company that offers warranties on their used vehicles. Of course, buying a used car is a risk anyways, as most used car dealerships, as well as owners outright selling their vehicles do not offer warranties either.

If you live in or around the Chicago area, you may want to examine North Shore Auto Auction. Their online website can be found at www.publicautoauctionnst.com. With regularly scheduled auto auctions, as well as information on those auctions, including the used cars that will be auctioned, North Shore Auto Auctions is known for being one of the best auto auctions in the Chicago area.

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December 18, 2009

Nowadays, life can be pretty hard. Everything is increasing with prices escalating out of site! This makes us all targets of potential scams and frauds.

With all these swindlers and scammers lurking just about anywhere, it is best to always be on guard and to know the things to be avoided in order to prevent the probability of being a victim of frauds and swindles.

Consequently, people who are buying used cars should also be aware of the different fraudulent activities being employed by unscrupulous people in order to have the best buy of used cars.

Moreover, people who are aware that the cars they have bought are stolen, chances are, they will be held liable.

Here are some things to avoid when buying used cars:

1. Used car buyers should avoid any transactions that are too good to be true. This will only make the matter worst if the buyer will believe that the deal is the best-used car deal ever.

2. Buyers should avoid buying used cars from sellers that do not provide a permanent address or the actual place of work of the phone number given.

3. It is important for a buyer to check on the VIN or the vehicle identification number plate. It must be securely fastened onto the used cars dashboard, with no rivets that are loosened.

Loosened rivets would mean that the VIN plate does not fit or it has been previously removed.

4. Also, the buyer should also avoid buying used cars that have VIN plates that are touched up, its paint is newly retouched, and the numbers look as if they are not the original factory numbers.

VIN plates can be easily swapped by a thief and use those that are taken from a destroyed vehicle.

5. As much as possible, it would be better to avoid buying a used car that is freshly painted. There are instances wherein the stolen cars identity is being changed through changing its paint color.

6. Used car buyers should avoid buying cars from a seller that cannot present the cars insurance policy. This could mean that the car is stolen or the seller is not the true owner of the car.

It is extremely important for the buyers to take note of these things before buying a used car. An ounce of prevention really is worth a pound of cure!

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December 14, 2009

Buying a car is one of the largest investments many people make in their lives-and more and more, people are bypassing new cars for used models. In fact, used cars have become big business in the U.S. and today, consumers have choices that stretch beyond the big lots and dealerships.

Just remember that when you’re buying a car-new or used-it’s important to get the facts first. Doing so can help you be more certain you’re actually getting the car you want at the price that’s right.

“Buyers should be sure to consider all the angles-from mileage, model and vehicle history, to warranties and financing,” says Brad Eggleston of AutoVantage. Here’s how to protect yourself:

• Check out the model’s repair record, maintenance costs, and safety and mileage ratings in consumer magazines or online. Check the National Highway Transportation Safety Administration’s Web site (www.nhtsa.dot.gov) to see if the car you are considering has any recalls associated with it.

• Get a vehicle history report from Experian Automotive (www.autocheck.com). It’s a cheap way to ensure you’re not the victim of odometer fraud and that the car wasn’t in a fire, flood or accident.

• Dealers are required by the Federal Trade Commission to post a Buyer’s Guide in every used vehicle offered for sale. Read it. This guide provides important information about the car and always overrules your sales contract.

• Consult the Kelley Blue Book to learn what a car is worth before going to the negotiating table. Be prepared to bargain for the best deal on your car. Also, visit a qualified mechanic for an automotive diagnostic and inspection before buying. Check the Car Care Council’s Web site (www.carcarecouncil.org) to find certified mechanics.

• Take a serious test drive. Test the acceleration and give the brakes a workout. Make sure the steering wheel doesn’t wander from left to right or shake. Drive up and down hills, down highways and through stop-and-go traffic.

• When financing, beware of advertisements offering tempting deals to folks with bad credit or first-time buyers. Find out the exact price you’re paying for the vehicle, the amount you’re financing, the finance charge, the APR and how many payments you’re up against.

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December 12, 2009

Tips For Buying A Used Car And Avoiding A Lemon

Do some homework before you start shopping for a used vehicle. Think about what your needs are, what your driving habits are, and what your budget is. You can learn about vehicle models, options, and prices by reading dealership ads in the newspaper as well as reading the classifieds.

There is also a host of information about used cars on the Internet. Enter the words USED CAR as keywords for searching and you will find information such as how to buy a used car, how to conduct a pre-purchase inspection, ads for cars available for sale, as well as other information.

Your local library and book stores are another source of good information. They have publications that compare car models, options, and costs; as well as offer information about frequency-of-repair records, safety tests, and mileage.

Once you’ve narrowed your car choices, research the frequency of repair and the maintenance costs on those models in auto-related consumer magazines. For information on recalls, contact The U.S. Department of Transportation’s Auto Safety Hotline at 1-800-424-9393.

When you find a vehicle you are seriously interested in, considering using one of the vehicle history services available online to find out what that vehicles history is. Some of the services available include an odometer check to help you make sure the mileage on the vehicle is accurate; checking the registration to find out if the vehicle was a rental, a lease, private party, or fleet vehicle; a title check; as well as finding out if the vehicle is a lemon, was in a major accident, was a salvage vehicle, or was ever reported stolen.

There is typically a fee for these services, but spending a little money to find out the exact history of the vehicle can save you serious money and headaches down the road. In order to use one of these services, you will need the VIN from the vehicle. Enter the keywords VEHICLE HISTORY in an Internet search engine such as Google or Yahoo. It will yield results for several organizations that offer these services such as http://www.carfax.com and http://www.autocheck.com

For financing you have two choices. One is to pay in full at the time of purchase. The other option is to finance over time. If you finance, the total cost of the vehicle increases because you are also paying for the cost of credit which includes interest and other loan costs. If you are going to finance, consider how much money you can put down on the car, your monthly payment, the length of the loan, and the annual percentage rate. Keep in mind that annual percentage rates are typically higher on used vehicles. The loan period is typically shorter on a used vehicle as well.

Dealers and lenders offer a variety of loan terms and payments schedules. Shop around. Compare offers. Negotiate the best deal you can. Be very careful about advertisements that offer financing to first time buyers and to people with bad credit. They typically require a big down payment and have a high annual percentage interest rate. If you agree to financing that carries a high interest rate, you might be taking a big risk. If you decide to sell the car before the loan is paid in full, the amount you receive from the sale of the vehicle may be far less than the amount you need to pay off the loan. If the car is repossessed or declared a total loss because of an accident, you could be obligated to pay a considerable amount to repay the loan even after the proceeds from the sale of the car or the insurance payment have been deducted.

If you decide to finance, make sure you understand the following aspects of the loan agreement before you sign any documents:

1) the exact price you are paying for the vehicle, not just what the monthly payments are
2) the amount of your finance charges (the exact dollar around the credit will cost you)
3) the annual percentage rate (APR)
4) the number of monthly payments and the amount of each monthly payment
5) the total cost of the vehicle (including tax, title, registration, finance costs, etc.)

Used cars are sold through numerous types of outlets: franchise dealers, independent dealers, rental car companies, leasing companies, used car superstores, private party sales and the Internet. Check with family and friends for recommendations on where to buy a vehicle. It is also a good idea to call your local Better Business Bureau and/or the State Attorney General office to find out if any unresolved complaints are on file about a particular dealer before you decide to do business with them.

There is a lot of hype in ads you will see. Some dealers are attracting customers with no-haggle prices, factory certified used cars and better warranties. Consider the dealers reputation when evaluating these ads.

By law, dealers are not required to give used car buyers a three day right to cancel. The right to return a car in a few days for a refund exists only if the dealer grants this privilege to buyers. Before you purchase from a dealer, ask about the return policy. Get the return policy in writing and read it carefully to be sure you understand it.

The Federal Trade Commission’s Used Car Rule requires dealers to post a Buyers Guide in every used car they offer for sale. This includes light-duty vans, light-duty trucks, demonstrators, and program cars.Demonstrator vehicles are new vehicles that have not been owned, leased, or used as rentals, but they have been driven by the dealer staff. Program cars are low-mileage, current-model-year vehicles returned from short-term leases or rentals.

Buyers Guides do not have to be posted on motorcycles and most recreational vehicles. Anyone who sells less than six cars a year does not have to post a Buyers Guide.

The Buyers Guide must tell you the following:
1) whether the vehicle is being sold as is” or with a warranty
2) what percentage of the repair costs a dealer will pay under the warranty
3) that spoken promises are difficult to enforce
4) to get all promises in writing
5) to keep the Buyer’s Guide for reference after the sale
6) the major mechanical and electrical systems on the car, including some of the
major problems you should look out for
7) to ask to have the car inspected by an independent mechanic before you buy.

When you buy a used car from a dealer, get the original Buyers Guide that was posted in the vehicle, or a copy. The Guide has to reflect any negotiated changes in the warranty coverage. It also becomes part of your sales contract and overrides any contrary provisions. For example, if
the Buyers Guide says the car comes with a warranty and the contract says the car is sold “as is,” the dealer must give you the warranty described in the Guide. When the dealer offers a vehicle “as is,” the box next to the “As Is – No Warranty” disclosure on the Buyers Guide must be
checked. If the box is checked but the dealer promises to repair the vehicle or cancel the sale if you’re not satisfied, make sure the promise is written on the Buyers Guide.

Some states, do not allow as is sales for many used vehicles and some states require different disclosures than those on the Buyers Guide. Check with you state Attorney General office to find out what the laws are in your state.

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