Cheap Used Cars while avoiding Lemons

Buying a used car is scary. To save money and make sure you don’t end up with a lemon, research the different methods and order a CARFAX report.
Cheap Used Cars while avoiding Lemons
Buying a used car is a major investment for most families. A reliable vehicle is needed to get back and forth from work, to carry children to important events and for all kinds of errands and emergencies. In most small towns in America, you will have major automobile dealerships that sell new cars and a selection of used cars and that is where most families go first. Many of these used cars are trade ins from people who purchased a new car at the dealership. Buying from a reputable dealer is a good move, because many of them rely on their reputation to establish repeat customers.

There are more used car salespeople that are not tied to a dealership. These small businesses sell cars they purchase at an auction for from trade ins. For consumers with challenged credit, many of these dealerships offer a ‘buy here, pay here’ program that does not require a credit check. It gives those who really need a cheap used car but can’t get traditional bank financing an option. Unfortunately, many of these dealers are not honest and take advantage of consumers with high interest rates and “lemons.”

If you are unsure about the history of a used car you want to purchase, CARFAX offers detailed reports on the vehicle’s history. The company began in 1984 and exploded in the early 1990s. Many used car dealers offer a CARFAX report with their vehicles. While some buyers are not swayed by a car’s history, many people have avoided purchasing a lemon by using the CARFAX history. The company has also taken many lemons off the road by making them unattractive to buyers.

With the Internet, you can purchase a used car from a seller in California, even if you live in Georgia. The popular Internet auction site EBay has a site called EBay Motors. Used vehicles of all makes and models are sold on the site. Many are auctioned off to the lowest bidder, so it is easy for some buyers to find a great deal on a vehicle. Consumers need to make sure they understand the long lists of terms and conditions before purchasing the vehicle. If the car is 3,000 miles away, the method of getting the car to you should be negotiated up front.

Many car enthusiasts know about www.autotrader.com. The site allows consumers to search for a car by zip code. Consumers can also research their options for purchasing insurance for the vehicle, which is mandatory in most states.

Many consumers find the best deals in used cars in their local newspaper. Many people simply want to get rid of a car they have outgrown and did not feel as if they were receiving enough money if they used it as a trade in. The seller may have purchased a new car with cash and now has an extra car to sell. Be careful, because many people will try to make money by selling you a lemon.

If you want advice of purchasing a used car, you can get if from an unlikely source—the federal government. You can get a publication with helpful tips at www.ftc.gov/bcp/conline/pubs/autos/usedcar.shtm. If you don’t want to sort through all of the advice, here are some of their most helpful tips when buying a used car.

Buying from a dealer? Look for the Buyers Guide. It’s required by a federal regulation called the Used Car Rule.

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. Check out the car’s repair record, maintenance costs, and safety and mileage ratings in consumer magazines or online. Look up the "blue book" value, and be prepared to negotiate the price.

Ask for the car’s maintenance record from the owner, dealer, or repair shop.

Test 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.