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Buying Cars

Should you buy new or used cars?

It just doesn't make sense to buy a new car. Years ago, when all a driver could expect out of a vehicle was perhaps 100,000 miles before it fell apart, buying used was truly "buying someone else's problems." Vehicles of today are put together with cutting- edge technology, and are designed to last much longer. A vehicle with 200,000 miles on the odometer is no longer as surprising as it was even twenty years ago. In fact, Doug Schell of Toledo, Ohio just made national news recently when his Ford van reached the 1,000,000 mile mark. Yes, thats one million!

On a two-year-old used vehicle, someone else has paid the depreciation, which is generally going to be 25-35% of the new car cost. The payments on a used car are significantly less than a brand new one, and insurance fees and license tags (in states where the fee is calculated by the vehicle's worth) are lower as well. Most late-model used vehicles come with the remainder of the original warranty, and in most cases that warranty can be extended. Even factoring in the costs of such a policy, a used car buyer will come out ahead.

Sure, there are lemons out there, but it is so easy to make sure you're not buying one. There are several websites such as www.autoextra.com where any used vehicle can be researched by specific make, model and year. For a fee, a person can also research a specific vehicle by its VIN number, at websites like www.autocheck.com. The report will show just about anything a person will need to make an educated buying decision-if the title is clear, if it has ever been a salvaged title, if it served as a rental or fleet vehicle, and more.

When buying a used vehicle, steer away from ones that are fleet vehicles or rental agency returns. Sure, they've received better routine maintenance than the average car, but they have also been driven by hundreds of people that may not have treated it very well. These vehicles are always have an above average odometer reading, which harms the future resale value. Rental cars are often traded at first signs of trouble, which is just about the time the original warranty expires as well.

Also beware of late model used cars that have had three or more owners. Something is wrong somewhere if it's been traded in and out of several times.

Since the used car that "a little old lady only drove to church on Sundays" is an urban myth, one of the best used cars is a lease return. In most cases, leased vehicles have average or even under-mileage odometers (lessors pay a per mile over-fee, so they try to keep the mileage down.) A leased vehicle also needs to be returned in very good shape, other wise reconditioning and repair bills can make for a high after-lease penalty. Another type of good used vehicle is one that was bought at and maintained by the dealership that is reselling it. The service advisors will know the history of the car and will be that much more able to service it after you buy it, as well.

Another good way to purchase a used vehicle is to look into one that's been reconditioned, a "certified used vehicle." It's not new, but it's in such great condition it's really a misnomer to call it used, too. Only the best of the best of trade-ins fit into this category, and this is after the vehicle has undergone an extensive inspection and reconditioning process. This type of vehicle is a good compromise between new and used, as it is virtually impossible to know that the vehicle has been pre-owned until you see the odometer reading. These vehicles are often priced at the higher end of the Kelly Blue Book values, but, for peace of mind, are truly worth it.

Learn more about this author, Ali Koomen.
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Below are the top articles rated and ranked by Helium members on:

Should you buy new or used cars?

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    by Ali Koomen

    It just doesn't make sense to buy a new car. Years ago, when all a driver could expect out of a vehicle was perhaps ... read more

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