Your Money_ The Missing Manual - J. D. Roth [89]
In many ways, the process of buying a used car (especially from a dealer) is the same as buying a new car, but there are a few extra things to keep in mind:
Research reliability. In addition to figuring out how you're going to pay (Money matters), do some research to find out whether the models you're interested in are dependable. Consumer Reports publishes reliability records every year. (Your public library should have a copy of the most recent car-buying issue.)
Note
To get official, government advice on the legal ins and outs of buying a used car, check out this FTC guide: http://tinyurl.com/FTC-usedcar.
Know the vehicle's value. Check prices at Kelley Blue Book (www.kbb.com), Edmunds.com, NADA Guides (www.nadaguides.com), and the Consumer Reports Used Car Service (http://tinyurl.com/CR-usedcar).
Ask questions. Whether you're buying from a dealer or a private party, find out as much as you can about the car. How many owners has it had? Has it ever been in an accident? Are all the maintenance records available? What sort of gas mileage does it get? Why is it for sale?
Tip
For $35, you can get the Carfax (www.carfax.com) vehicle history report, which tells you if the car has been in any accidents, how many owners it's had, and so on. (Better yet, if you're buying from a dealer, ask them to pull the report for you—there's a good chance they already have it on file.)
Inspect the car thoroughly. Check the interior, exterior, tires, tailpipe, and engine. When you test drive it, pay attention to the handling and acceleration, and listen for strange noises.
Take the vehicle to an independent mechanic. For $100–$150, a mechanic can tell you if the car has any major problems.
Make an offer. Start below what you think the car is worth (minus the cost of any repairs it needs) and work up from there.
Trust your gut. If something bugs you about the deal, call it off.
Tip
If you really want to save money, consider owning a beater—an older used car that's near the end of its life. Beater Review (www.beaterreview.com) can help you find great cars for under $5,000.
Selling a Car
To avoid hassle and haggling, many folks simply trade in their old vehicles at the dealership. It's quick and easy—but costly. Dealers often make significantly more on your trade-in than they do selling you a new car! To get a fair price for your old car, you're better off selling it yourself. Before you do, remember to:
Prep your vehicle. Make sure everything works. Consider having a mechanic check the car and issue a report about its condition. And clean the car (inside and out) until it shines.
Research the market. Spend a few weeks reading used-car ads in the newspaper and on Craigslist.org to see what people are asking for similar vehicles. And use the Kelley Blue Book or NADA Guides sites (Selling a Car) to get more info.
Set a competitive price. Figure out what you think your car is worth—being honest about its condition and value—then add a little to the price for wiggle room during negotiations. Decide what your rock-bottom price is.
Gather your records. Put together a folder with all your car's maintenance records. If you had a mechanic inspect the car, include his report. Consider getting a vehicle report from Carfax.com to help set the buyer's mind at ease. And have a bill-of-sale document ready to go. (What you need for a bill of sale depends on where you live, so check your state's DMV website for details.)
Write an ad that sells. Mention features, improvements, and any recent upgrades, like new tires or battery. Have you always parked it in a garage? Say so. Do you have all the maintenance records? Mention that, too. And if you're posting an ad online, include as many photos as you can.
Spread the word. Get as much exposure for your ad as possible. The more demand