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4.0 USED CARS - HOW MUCH TO PAY? AUTOMOBILE DISCOUNTS - BUYING, LEASING
Determine how much you can afford.
Then subtract these guesstimates:
You can afford.............$5,000
Mechanic to inspect(2 cars)..-150
Initial repairs..............-500
Sales tax/title..............-350
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Look to pay: $4000
As
a rule of thumb, you can finance 85% of the Blue Book value of your next used car. 15%
must come as a cash down payment or from your trade-in.
4.0.1 WHICH CAR TO BUY?
Choose
a common car, one that is easy to repair and easy to find parts for. Be flexible; with a
used car you need to select from what's available. Avoid exotic cars. NEVER buy a car that
has been in an accident.
The
Consumer Reports Annual Auto Issue lists "reliable used cars" starting at $2000 and "used
cars to avoid." NEVER even look at cars on their list to avoid. The issue also includes
comprehensive frequency-of-repair charts for most vehicles in the last seven years. ALWAYS
look at these charts when considering a particular model. They tell you the areas that a
mechanic should look at closely. Also look at the lists of good and bad cars in The Used
Car Book.
4.0.2 HOW MUCH IS A CAR WORTH?
Prices
can vary considerably in different parts of the country. Mileage and condition are
important.
Edmund's
Used Cars Prices & Ratings gives you benchmark figures for just about any used vehicle
in the last ten years. It includes a chart that shows what to add/subtract based on the
car's mileage. You should try to buy for a bit above the listed wholesale price, the
seller will want to sell for a bit below retail.
Edmund's
price is an estimate only. The next step is to get local publications with ads for used
cars. Convenience stores frequently carry local publications with hundreds of car ads,
including pictures. Also look in the classified ads of the newspaper. Write down in a
notebook the make, model, price, mileage, equipment and needed repairs. Call sellers with
cars in good condition at reasonable asking prices. (You'll bargain them down).
4.0.3 WHO TO BUY THE VEHICLE FROM
Individuals
sell about half the used cars available and usually offer the best price. If you are
buying a late model car, you might want to get it from a dealer with a warranty; read the
warranty carefully.
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