by Patrick Sills

Created on: July 24, 2008   Last Updated: November 07, 2008

More often than not, it makes financial sense to purchase used cars rather than brand new ones. Once that shiny new model is sold and driven off the lot, the car's value has already started its downward spiral. By buying used cars; especially late-model examples, you effectively let the first owner depreciate it for you. This can result in a savings of thousands of dollars.

But what do you do in this scenario? Let's suppose that you buy a used car and congratulate yourself for paying 40-50% less than the sticker price of the same new model; or for that matter, something comparable. A few months pass and the nightmare unfolds. The brakes are grinding metal against metal. Assuming that there was some semblance of a warranty at the time of purchase, you discover that this component is not covered. You pay $300 for a brake job. Next, some sensor goes out and leaves you stranded 10 miles from the nearest town. You have to call a towing service. The bill for this rescue mission sets you back a couple of hundred dollars. In addition, your warranty has a $100 deductible stipulation. The repair costs $150, so $100 of that comes out of your pocket. Next, your air-conditioner's compressor decides to fail. It's 95 degrees outside, and you are faced with no option but to turn on the vents while hot air blows in your face. Over the next year, other annoying incidents such as these occur, and you keep forking out that $100 deductible on each occasion. Then, exactly a week to the day after your used-car warranty expires, the transmission fails. When you are told that it will cost $2500 to repair, you take the time to add up all of the expenses you've incurred since buying the car. You're shocked with utter disbelief when you discover that you have spent more in repairs than what you initially saved by buying a used car in the first place. A seemingly great deal didn't turn out to be so great after all.

To avoid this hypothetical yet unnecessary situation, it is strongly advisable to check reliability ratings on the vehicle you're interested in before you dive into that purchase.
There are publications that will provide this information as well as websites. Some of the better-known raters are Consumer Reports, J.D. Powers, Edmund's, and Consumer Guide. It should be noted that a couple of these; notably Consumer Reports and JDP, should only be used as a rough comparison because in most cases, these companies appear not to think much of any car unless it's Japanese. As a result,

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