Buying

Identifying target

Target identification

About usage

Used vs new

Used cars, even those that are only one year old, are 20 to 30 percent cheaper than new cars. You’ll save money on insurance.

Most new cars are sold with a three-year/36,000-mile warranty. Therefore, if you buy a car that is from one to three years old, with less than 36,000 miles on the odometer, it will still be under the factory warranty.

Usage type

Single owned or double owned cars are preferable. Family owned cars good. Rental vehicles are reputed to be badly used.

Modified cars, and the speedometers on them are less trustworthy.

Cars from the south, where there is no snow, are preferable. Single owner, family cars are more desirable, as they are more likely to be well taken care of.

Certification

If it is a certified used car, there is no reason to take it to a mechanic.

About various models

Japanese cars are considered the most reliable, long-lasting and fuel efficient. American cars are reputed to be more powerful, but less reliable.

German cars are considered somewhat reliable, but the cost of parts is high. Honda part costs are lower. Mazda part costs are higher. Getting parts for discontinued models may be tougher.

Manual transmission cars are cheaper and more fuel efficient, but they are harder to sell.

Some American cars are imitations of Japanese cars, and hence are likely to be more reliable than average. Chevrolet Prizm is an imitation of Toyota Corolla. If you are considering a Toyota Camry you should also look at the Honda Accord, Nissan Altima, or Mitsubishi Galant. Two Edmunds.com editors recently shopped in the family sedan class. They found that two-year-old Camrys and Accords were about $3,000 more than comparable 626s and Galants.

Consumer reports indicates that, for less than 6000$, the following used cars have better than average verdicts: (Honda civic and Toyota Corolla seem to be the perennial favorites.) Check MSN reliability ratings, howstuffworks, Edmunds customer reviews.

• Chevrolet Prizm 98-00
• Ford Escort 99, 01, 02
• Ford Mustang V6 98
• Ford Ranger 2WD 98-99
• Honda Civic 98
• Hyundai Accent 03 (The ratings for the 02 model seem to have gone down within the past year. A disturbing trend.)
• Mazda B series 2WD or Protege 98-00
• Mercury Tracer 99
• Nissan Altima 4 cylinder 98
• Nissan Frontier 4 cylinder 98
• Nissan Sentra 99
• Saturn SL 99, 01
• Saturn SW 98
• Subaru Legacy 98
• Toyota Corolla 98, 99
• Toyota Echo 00

Target description

Target reputed, fuel efficient model from first or second owner. Do not buy heavily/ inconsistantly used cars. Do not buy cars with major/ costly problems.

Try to buy cars which do not require comprehensive insurance. Many cars were dented by hailstorms in Austin in 2008 and 2009. [Ref]

Good places to look for cars

Private sellers

• If you buy from a private party, the negotiation process is less stressful.
• Reasonable prices.

Listings

See craigslist and newspaper listings.

New car dealerships

• Dealerships usually get these cars at rock-bottom prices. If you make a low offer, but one that gives them some profit, you just might get a great deal.
• They sometimes offer certified cars, perhaps with manufacturer guarantee.

Used car lots

Car max sells certified cars.

• Airport boulevard in Austin has many dealerships; bus 10 goes there.

Used car websites

• carmax.com
• cars.com
• craigslist.com. Look for deals by searching for “must sell”.
• autotrader.com
• Edmunds.com Used Vehicle Listings.

Rental car sell-outs

Rental car companies often sell their cars after operating them for some time. But see caveat about rental cars.

Auctions

Repossessed cars are often auctioned. \tbc

Anecdotal data

2007 observations: Manju bought a 2001 Civic with 78000 miles on it, for 8500$. Manoj bought a 1999 car 6500$. I might be able to get 98 Civic for less than 4500$. John Root bought a Toyota Corolla 2000 car for 3500$.

Anecdotal data: Dan drives the Suzuki DR650 motorcycle. Bought new for $5000. It has been around for a long time, and is considered reliable. He drives it on highways for short distances. About accessories:

Inspection

Evaluating a car

Questions to ask on phone or in person

Know Make/ Model, Milage (Ask reason for low/ high milage), number of doors, engine type, transmission type, whether it has leather or cloth upholstery, VIN number. What add-ons does it have?

Ask if he has the title, whether it is a salvaged title. Are you the first owner?

In case of dealer: Is it a trade-in or is it a lease return? Have any major parts been replaced? (Be cautious of buying a car that has had major repairs such as transmission rebuilds, valve jobs or engine overhauls.)

Are any repairs needed?

Has it been in an accident?

Is there anything else I need to know?

What is the asking price?

Also see questions to ask in person.

Remote checks

Check the vehicle’s history at carfax.com or autocheck using the VIN. Buy the 1 month unlimited checks deal. Consider ownership, accident, milage record. Note that these records are incomplete, and do not encompass important records (eg: police) in many states. But it has in the past revealed failed emissions and safety tests.

Check KBB, Edmunds’ True Market Value, \ NADAguides.com and CarMax value. Edmunds gives the lowest price, usually. Also check trade-in (and Private Party and Dealer Retail) value in these, especially if negotiating with a dealer.

For motorcycles: KBB (trade-in and retail), NADAguides, MC news guide.

If purchasing a new car, check the inventory price.

Read dealership reviews.

Questions to ask

Judge consistency of usage using the right questions.

Is the title clear? Do you have the title?

Gauge trustworthiness of owner. Age, profession, (teen) kids? What car is he buying next?

Any problems with the car?

Why are you selling the car?

Does the car have any rust?

Does all the electrical and mechanical systems work?

When was timing belt replaced? Any engine or transmission problems?

Documents to ask for

• The title: check ownership.
• Inspection sticker.
• Registration sticker.
• Ask for 30K, 60K and 90K service records. Records for transmission fluid change after every 30K. Note whether the car has had oil changes at regular intervals (at every 5,000 to 7,500 miles).
• Some sellers carry evaluation certificates.
• Determine miles travelled. Calculate miles used per year.

Visual Inspection checklist

Try to inspect during the day. Try to arrange your test drive so that you start the engine when it is completely cold. Some cars are harder to start when they are dead cold and, when doing so, will reveal chronic problems. Check for signs of accident, burglary, parts replacement: Carfax and other records are not at all complete.

Dents

Are any of the doors replaced? Look for misalignment, original door color under the seals: it should usually be grey, if replaced, there can be color mismatch.

Look for signs of repainting: does one side have a slightly different shade compared to the other? Are nuts painted over (especially under the hood and the boot doors)?

Other items

• Does it offer enough headroom? Legroom? Are the gauges and controls conveniently positioned?
• Rust spots: These are often concentrated around the tyre frames, door frame. It is often painted over in order to hide it.
• worn out tires
• Non functioning locks
• Dents, scratches, broken glass.
• Signs of accident.
• Wipers.
• Lights and indicators. Higher frequency sound by the turn indicator indicates that a bulb is not working well.
• Alignment of tires: Look from behind and front.
• Door alignment and Window alignment. Can cause wind noise, ac inefficiency.
• Cargo space/ boot.
• Uneven tread within tires. (Eg: outer edge of drivers side rear tire and the inside edge of the passenger rear tire)
• Start the car, insert finger in tail pipe and check to see if the emission is greasy / oily: indicated problem with emission or engine.
• Start the car, check fluid levels.
• Start the car, walk around, check for smoke coming from the sides: could indicate broken tailpipe.
• Start the car, open the hood, check for abnormalities.
• Start the car, place it in neutral, mildly press the accelerator and the break at once. If there is a problem in engine mounting, there will be vibration.

Driving test

Turn off the radio before you begin driving.

On the test drive, take your time and be sure to simulate the conditions of your normal driving patterns. If you do a lot of highway driving, be sure to go on the highway and take the car up to 65 mph. If you go into the mountains, test the car on a steep slope.

• Guages.
• AC.
• Acceleration from stop.
• Passing acceleration (Does it downshift quickly and smoothly?)
• Hill-climbing power
• Visibility (Check for blind spots)
• Engine sound.
• Non-Smooth gear shifting.
• Odd sounds.
• Wheel alignment: Does the car keep going straight without need for compensation? Leave the steering wheel briefly.
• Is the steering wheel loose?
• Breaks.
• Cornering, sharp turns.
• Suspension (How does it ride?)

Mechanic check

After making an offer, but before making the deal, get it evaluated by a mechanic.

AutoPI will come to the spot and check the vehicle. They charge 125$ for a 600 point check, which lasts about 45 minutes. There is a discount for UFCU members. Good reviews heard.

Firestone charges 50$. Bad reviews heard.

Finalizing, other info

Negotiation

The foundation of successful negotiation is information.

Negotiate over any defects you notice during inspections.

It is possible to buy new cars below the inventory price: Dealerships get paid by manufacturer to display cars for 3 months after release. Also, during certain times of the year, dealerships may be keen to get rid of old cars in order to stock new ones. In negotiating with dealers: Whilst negotiating over used cars, start at little over the trade-in value. Be prepared to walk out. Used car salesmen are often more experienced than new car salesmen. Don’t include your old car’s trade-in or financing during the negotiations. Once the price is negotiated, they can be brought up to check if the dealership can beat the bank loan rate.

Other dealership negotiation tips from Edmunds.com:

• Only enter into negotiations with a salesperson you feel comfortable with
• Make an opening offer that is low, but in the ballpark
• Decide ahead of time how high you will go and leave when your limit’s reached
• Walk out — this is your strongest negotiating tool
• Be patient — plan to spend an hour or more negotiating
• Leave the dealership if you get tired or hungry
• Don’t be distracted by pitches for related items such as extended warranties or anti-theft devices
• Expect a “closer” (another salesman you’ve haven’t previously dealt with) to try to improve the deal before you reach a final price.

Dealership tricks: wait extended periods of time during the negotiations, good guy/ bad guy and straight out lying and manipulation.

Closing the deal

“Trust your instincts. If you have any doubts about the vehicle or the seller, don’t buy.”

Leave a deposit, get a receipt acknowledging this and promising not to sell the car till you return in a couple of days.

Make payment, but get owner’s signature on the title before the money changes hands. Pay with cashier’s check if possible.

In dealerships: In most states, it will contain the cost of the vehicle, a documentation fee, a smog fee, a small charge for a smog certificate, sales tax and license fees (also known as DMV fees). Make sure you understand the charges and question the appearance of any significant, sudden additions to the contract. If any repair work is required, and has been promised by the dealer, get it in writing in a “Due Bill.” Make sure the temporary registration has been put in the proper place.

Get insurance. Make sure you have insurance for the car you just bought before you drive it away.

Get car registration. Pay (6.5%) tax: write down the official price, or say it is a gift. Application for Texas Certificate of Title (Form 130-U). Apply for title. Visit the County tax office with seller. The clerk will tell you whether there is any salvage or other issue with the vehicle.

References

Edmunds guide.