With the price of a new car getting higher and higher each year, many buyers choose to buy used cars instead. The price of a new car can easily equal a year’s pay for many people, so buying a used car makes sense. But there are risks associated with buying a pre-owned vehicle. What if is defective? What if it is a lemon law buyback? Once should always be a bit suspicious of a used vehicle. After all, if it is a great buy, then why did the original owner choose to part with it?
To resolve some of these issues, as well as to compete with volume dealers of used cars such as Carmax, the major auto manufacturers have introduced the concept of a “certified used car.” These cars are inspected for problems, repaired if necessary, and offered for sale with a warranty that is better than the one typically offered with sales of used cars. In exchange for this added peace of mind, the buyer pays a higher price than he or she otherwise might.
This program is good for dealers, who find the cars easier to sell, and for the manufacturers, who get a fee from the dealers in exchange for certifying the vehicles. The problem for the consumer is that there are cars being sold as certified used cars that may not really be certified. Worse, some of these cars have problems that are so severe that they possibly shouldn’t be sold at all.
Some states have rigid laws that prevent cars with certain types of damage, such as from fire, flood, or a severe accident, from being sold within that state under any circumstances. And yet there are reports of such vehicles having been transported to neighboring states, where their titles can be “laundered.” Some of these cars have then been sold as certified used cars.
There are several lawsuits pending in California over the sale of such cars, and the problem will continue to exist as long as there is no national standard regarding the sale of used cars. Does this mean that buyers should steer clear of certified used cars? Of course not. What it does mean is that buyers should exercise caution when they shop for a used vehicle, whether it is certified or not. And that is just plain common sense.
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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.
Tags: Autovantage, Big Lots, Buying A Used Car, Car Care Council, Consumer Magazines, Dot Gov, Drive Test, Eggleston, Federal Trade Commission, Fire Flood, Highway Transportation, Kelley Blue Book, National Highway Transportation Safety Administration, Nhtsa, Record Maintenance, Sales Contract, Steering Wheel, Tips For Buying A Used Car, Transportation Safety Administration, Vehicle History Report