There is no doubt, buying a late model used car is quite often a better value than purchasing a brand new car. When you buy a new car, as soon as you drive off the dealer's lot, you lose thousands of dollars of value on the ride home. Used cars do not depreciate as much, it has already happened.
In many cases you can buy a pre-owned car with more bells and whistles at a reasonable cost than you ever could when you buy new. That said, you must be careful when you buy used. You don’t want to spend your hard earned money on a nice shiny car that turns out to be a good looking clunker. Following are some of the biggest mistakes people make when buying a used car.
1.) Not getting the car history:
Today, more than ever, it is easy to get the true history of most any car. Look at the VIN (Vehicle Identification Number) on the plate on the dashboard near the windshield. Check it against the VIN on the registration to see if they match. You can check this same number for any records by using a service like CarFax. It is free to check and see if there are any records available. A small fee will give you a detailed report. The report shows how many owners, if the car was totaled through accident or flood, odometer rollbacks, lemon histories, junked titles, vehicle use (taxi, lease, fleet car), and state emission results to name a few. Not getting this report is a huge mistake.
2.) Not getting a professional inspection:
Even if a car history report comes up clean, that does not mean the car is without problems. Many cars are not maintained according to the manufacturer and may have hidden problems. Having a good mechanic inspect your car may save you thousands of dollars. The pros know how to spot engine problems, transmission problems, and other mechanical problems under the car. If you don’t get an inspection you are buying the car blind.
3.) Paying too much for the car:
Every car has a value. Look up the "book" value on Kelley Blue Book to find the trade in value, private party value, suggested retail value, and the certified pre-owned value of the car you are interested in. If you know what these values are you will know if the asking price is fair. Kelley Blue Book will rate the car according to mileage, year, condition, and options. Just plug in the information and get the results.
4.) Being ignorant of consumer and safety ratings:
It is a big mistake not to inquire about consumer and safety ratings of the make and model you are considering. The Internet is full of bulletin boards where consumers rate their car. Consumer Reports is another source of information. A non biased rating is best. Don’t buy a car if you don’t know what the rating is.
5.) Buying with your heart and not your head:
Too many people allow their emotions to get in the way of good common sense. No matter how cool, luxurious, sleek, stylish, or sexy the car looks; if it is not mechanically sound it will break your heart. Think through your decision with facts, figures and sound advice. In the end you will be far better off and save time and money.
There is a lid for every pot, a glove for every hand, and a car for every driver. By avoiding the biggest mistakes others make buying a used car, when you turn your used car on, it will return the favor.