Used Cars.
A simple term that has a less than positive meaning for most car buyers. Conventional wisdom says that buying a used car is buying someone else’s problems. However, as new car quality has gone up, the risk of buying a late model used car has gone down. In fact, the automotive industry doesn’t even call them used cars anymore. The term to look for now is Certified Pre-Owned, or CPO.
“There is a growing market in this country for used vehicles that have been put through a Certified Pre-Owned program. CPO vehicles give the consumer a chance to buy the latest models, often only two or three years old, at a big savings over a new car. So, when you buy one, you’re really doing yourself a favor,” says John Davis, host of MotorWeek, the longest running weekly automotive show on television.
More than a third of all late model used cars and trucks sold last year -- nearly 1.2 million vehicles --- came with a Certified Pre-Owned designation. They are typically vehicles that have low mileage, and have been put through a battery of tests to make sure they are in tip-top condition. Vehicles that fall into this category are mostly just off-lease, secured from factory executive car auctions, from rental fleets, or the very best trade-ins.
“A new car depreciates by 15 to 20 percent the moment you drive it off the lot,” says Davis. “If you buy one that’s Certified Pre-Owned, you avoid taking the initial depreciation, yet have an almost new car with a strong warranty and in some cases a better warranty than a new one. Smart consumers can think of these vehicles as the best and brightest in their class.”
According to CNW Marketing Research, Inc., one can expect to pay a premium of between four and seven percent for a vehicle with the Certified Pre-Owned designation. “They may cost a little more than you’d expect to pay for a used car, but when you look at all the checks and balances performed and the extra warranty, it’s easily worth it,” says Davis.
Among the benefits, not just some, but all vehicle parts that are even moderately worn have been replaced. Many Certified Pre-Owned cars come with new brake pads, hoses, accessory belts, wipers and batteries. Their engines and transmissions have been checked and overhauled if necessary; minor exterior damage -- like nicks, dings and tattered trim -- is repaired or replaced; carpets and seat upholstery are shampooed or cleaned, and if they look less than new, are replaced.
Beyond that, certified programs provide additional warranties, often up to 100,000 miles, and may also include perks like car-club style roadside assistance. This kind of warranty actually exceeds the coverage offered by the factory when it was new. “Certification programs increase consumer confidence about the quality of a used vehicle,” says Scott Weitzman, senior director of retail programs for the noted automotive polster, J.D. Power and Associates.
But, don’t just buy any vehicle that is labeled Certified Pre-Owned. The best CPO programs are found only at new car dealers, with repair requirements and warranties backed by the factory. Also, ask to see the checklist on the car or truck of your choice so you will know exactly what has been serviced.
“Simply put, purchasing a Certified Pre-Owned vehicle is really a win-win situation for everyone. Manufacturers make money on vehicles they had in fleets or on lease, dealers increase their income percentage compared to new car sales, and customers walk away feeling better about some of the built-in guarantees,” says Davis.
Used car buying tips
Used car buying tips
Buying a used car is more complicated than buying a new one. There are many do's and don'ts when it comes to buying a used car. Buying a used car can be a lot trickier than buying a new car. When buying a used car there are more concerns about what may already be breaking or what's already been fixed. Another concern with buying a used car is a warranty. Over half of the used cars out there today are being sold "as is". Buying an "as is" car is very risky. Once you hand over that money and sign your name on the dotted line, that car is your problem no matter what happens.
Not all aspects of buying a used car are bad. Used cars can be the smartest way to go sometimes. If you are living on limited means, a used car is a great idea if bought outright. If you are not going to finance the used car, you will only have to get liability insurance which is much cheaper than full coverage which is required when financing any car. Another bonus of a used car is that a used car won't have all the added fees attached to the price like a new car would. When buying a new car, the dealership adds fees like cleaning, shipping, and many more. A used car, even when bought from a lot, will not have the majority of these fees. If you find that you are in the market to buy a used car and you need some extra cash, try E-LOAN for a car loan. By following our simple steps, you can cut the risk of buying a car that is bound to fall apart and become a money pit for you.
Buying a used car obviously carries a certain degree of risk. After all, with a new car you get the peace of mind that no one has driven the vehicle carelessly or failed to have it maintained on a regular basis. And, if something does go wrong, the car is under warranty—at least for a period of time. These safeties are not usually included in the purchase of a used car. But used-car buying need not be as fraught with anxiety and terror as some may think. Knowing where and how to buy a used car as well as which cars to buy can alleviate most of the tension consumers feel about this unknown process. If you are willing to spend time doing thorough research, you will soon be driving the car of your dreams, secure in the knowledge that you paid a fair price for your new set of wheels.
Choosing a Used Car
How much could you afford?
Before you begin your search for a good deal on a used car, spend time considering many of the same factors that would apply to a new car purchase: how will you use the vehicle; how long do you plan to keep it; and your budget for the purchase, including insurance, operation, maintenance and repair costs.
What Car should you buy?
Decide what car best suits your lifestyle and image. Since you could probably be owning and using the same car for many more years, you need to anticipate future needs and lifestyle changes. Today you could easily consider buying a mid-sized car as these cars are available at great bargains. Narrowing down your dream list is a bit more difficult for used cars than new cars because there are so many more used vehicles. Talk to friends or acquaintances who drive cars that appeal to you; word of mouth is often one of the best ways to gather information about reliability or quirks of certain cars.
How Old is Old?
If Budget is top priority then you rather buy a smaller car that's newer than a large car that's older. Owning a larger car will cost you more as the running costs - fuel, maintenance, tyres, spares are costlier. The best bet is to look for something almost new - Two years or younger. You could get a real good deal because there are plenty of car owners who don't want to be seen in a 'yesterday's model' - they want to be seen driving only latest cars.
Buying a middle-aged car ( 3 - 5 years old ) that has been treated well by its owner could be a great deal. You could find a lot of these cars at a good bargain. Cars that have logged 14,000 to 18,000 Km a year are prime buys.
Cars flogged badly by chauffeurs or heavily used ones are like buying trouble.
Odometer readings can be rolled back, or "clocked." This fraud is practiced by thousands of fly-by-night, independent used-car sellers nationwide. The effect is obvious: a high-mileage car is turned into a low-mileage car to increase the car’s value. A car with low mileage, but with a lot of wear on the driver's seat or the brake and accelerator, may indicate tampering with the odometer.
How Much Should You Spend?
It's easy to overspend your budget on a new car or truck. Here's how to avoid getting in over your head.
Do some Research
You know how much you want to spend on a vehicle, but do you know how realistic that "deal" really is?get the valuation of the car from one of the banks’ valuator or just submit the car details on Carwale.com and we shall provide you with the approximate value of the vehicle?
Give yourself enough time to thoroughly check out the car. Don't buy at night, in the rain, or if you are too cold, too wet or too busy to study your choice. Always take the car for a test drive. Always have a mechanic check the car, particularly the underneath.
Take a Test-Drive
The moment has arrived to inspect and test-drive the car you are considering buying. This is, of course, an essential part of the process. You need to weed out the lemons and find the cream puffs. Here are some tips on how to do that.
Test drive the car on different types of roads. Make sure the engine starts right away, and there are no unusual noises or vibrations. Be alert to shaky steering. It could mean front-end trouble.
Test the brakes for signs of pulling. A brake pedal that looks worn out should not be found in a car with low mileage. If the car has a manual transmission, push the clutch through various gears to see how it performs. If the car has manual steering, remember city driving and parallel parking can be difficult, so try and test drive the car under many conditions.
Checkout the Outside
Look for signs of an accident, such as dents or new paint or chrome. Make sure the hood closes properly. Check the body for rust or fill. Look under the car. Check for cracks in the frame, rusting or welding. Check the condition of the muffler, tailpipe and exhaust system. Look for signs of fluids leaking from the car, including oil, brake or transmission fluid.
Push down the corners of the car to check the shock absorbers. If the car bounces up and down several times, the shocks are worn. Open the trunk. Check for a jack and the condition of the spare tire. Check for rust under the mats. Look at the tires closely for any signs of uneven wear.
Checkout the Inside
Lift the hood and check the condition of the belts and hoses. Check the battery to see if it is cracked. Pull out the dipstick to see the oil level, and whether it's dirty.
Check the parts and accessories, such as lights, horn, mirrors, seatbelts, radio, heater and windows. Make sure they all work. Have a friend check the outside lights for you.
Make sure doors open and close easily, and that handles and locks work well.
Check the dimmer switch, headlights and windshield washer. You should also check the odometer. It is against the law to change the odometer, and if you think someone has tampered with it, avoid buying this car.
Check the liens
When buying a used car, consumers should protect themselves by ensuring there are no outstanding liens against the car (for example: an unpaid loan). If there is still an outstanding lien, the car could be repossessed - even if you paid full price to the seller.
A Stolen Car
Always check the serial number on the Vehicle Registration card. Make sure it corresponds to the number on the car. Make sure the person who is selling the car actually owns it, and is not trying to sell a leased vehicle.
Making an Offer
If you decide to buy, you can make an offer in writing, or verbally. If there are conditions to your offer, write them down. For example, if you want your mechanic to inspect the car before the sale is final (and you have not already had the car checked out), make the mechanic's approval a condition of the sale. If you need to borrow money to buy, make your offer subject to getting credit at a reasonable rate.
The seller may ask for a deposit. Make sure you state in your offer that the deposit will be refunded if the mechanic does not approve the car, or if you do not get the financing.
As part of the offer, suggest the seller grant a 30-day warranty. The warranty should say that the seller will take the car back should any major problems arise with the engine or other parts of the car. This type of warranty would not cover accidents while the car is in your possession.
Avoiding Scams
As most of us know, used-car buying is a business that has traditionally created a bad name for itself. But while consumers and ethical auto dealers have benefited greatly from the Internet, so too have crooked buyers & sellers. As such, you need to be aware of potential scams. Here are some of the most common ones directed toward buyers & sellers online:
Certified Check Scams - This scam is often perpetrated on sellers of used cars over the Internet thorough classified ads and auctions. A buyer indicates that he wants to buy the car and pay with a cashier's check. At the last minute, the buyer creates a reason why he needs to write the check for more money and have the seller wire him the difference. The check turns out to be a fake, but it is often discovered long after the seller has wired the money. In addition, the seller is responsible for covering the money for the fake check. To avoid check scams, call the issuing bank before you accept the check and wait for the check to clear before you transfer the car into the buyer's name.
The best way to avoid most scams is to make sure you never transfer ownership of your vehicle until you have the cash in your hand. That means, you either get cash from the buyer or wait for the cashier's check to clear. Avoid buyers who will never meet you or never wish to see the vehicle in person (overseas). Avoid taking personal checks and allowing buyers to pay the car off over time. If buying, always verify the seller actually has/owns the item for sale and meet them face-to-face to view the vehicle. If you follow these few precautions, your buying and selling experience should go smoothly.
Dealer Tricks
If you are buying car from a dealer you must consider the dealer tricks. Most people dread going to buy a new car for one simple reason, the salesmen. Now I'm not saying all salesmen are out to get you but we've all seen our fair share of deceptive salesmen who use tricks or play on words to get that sale and make that commission. Now days, most car dealerships are trying to become "customer friendly".
To help you find a good dealership and weed through the bad, we've compiled a list of dealer tricks and how to avoid them. If you ever find yourself in any of these situations, don't be afraid to call the salesman on his tactic and leave the dealership. You can also let the salesperson know that you are leaving because of their trick and that you will not be back to that dealership to buy your new car. Word of mouth is one of the strongest forms of advertising and dealerships know this. Once you weed out the dealerships with poor customer service and poor sales tactics and find one you like and trust, you will be a loyal customer to that dealership and maybe even that particular salesman.
You make sure you browse through our list to familiarize yourself with these tricks before you go to a dealership. Don't get caught unaware. Although we've only listed the tricks we've seen first hand, we know there are many more tricks that dealerships/salesman will try to play on unsuspecting customers. If you have encountered any new ones we have not listed and would like to share with others and expose all the tricks we can, please email them to us at contact@carwale.com.
Closing the Deal
When you reach an agreement on the purchase price of a used car, you may be tempted to think you're home free. In fact, there are several crucial steps that need to be done correctly, or all your hard work up to this point could be for naught.
Change in Ownership
Always ask the seller for the Registration papers. These documents are required to transfer the vehicle ownership. The certificate also provides the purchaser a chance to confirm vehicle ownership.
In Nutshell
Check out the car's repair record, maintenance costs, and safety and mileage ratings in consumer magazines or online.
Make sure all oral promises are written into the Buyers Guide.
You have the right to see a copy of the dealer's warranty before you buy.
Warranties are included in the price of the product; service contracts cost extra and are sold separately.
Ask for the car's maintenance record from the owner, dealer, or repair shop.
Test drive the car on hills, highways, and in stop-and-go traffic.
Have the car inspected by a mechanic you hire.
Check out the dealer with local consumer protection officials.
If you buy a car "as is," you'll have to pay for anything that goes wrong after the sale.
The Used Car Rule generally doesn't apply to private sales.
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