Buying a Used Car

Buying a used car can be a good deal or a costly mistake. There are things you can do to protect yourself:

Shop carefully.
Car search
Compare prices.
Inspect the car.
Find the best loan.
Read your contract.
Know your rights.

How to Buy a Used Car

When you shop for a used car, don't limit yourself to used car lots. Look in the want ads of newspapers and local magazines. You may find the car you want advertised by a private seller. If you buy from a used car lot, choose a dealer with a good reputation. You can check a dealer's reputation by calling the Better Business Bureau or the Department of Motor Vehicles.

As you shop, compare prices. To find out what prices are fair, check the NADA Official Used Car Guide. This guide is called the "blue book"; it lists fair prices for all kinds of cars. You can find this guide at the public library.

Check It Out

A used car may have a good price, but if it doesn't run, it may be worthless. So before you buy, check it out. Have a good independent mechanic inspect it for you. Test drive it yourself: check the brakes and steering; listen for odd noises; turn on the lights, the heater and the wipers. After the drive, look for leaks and signs of overheating.

Remember, once you've bought the car, it is yours, you may not be able to return it; even if you find out that it has serious problems.

Financing a Used Car

People often shop at used car lots because the dealers offer financing and auto leasing. Financing is a kind of loan that allows you to pay for the car over a period of time, instead of all at once. The cost of the loan is called interest. Because used car dealers gene rally charge high interest rates, you should consider other ways of financing.

Find out if your employer has a credit union. The interest rates at a credit union are usually less than at a car dealer's. Also visit the loan department of your bank. It may have even lower interest rates and better terms of repayment.

If you finance your car, you will have to sign a loan agreement. It will state the amount of the loan and all the extra charges. Always check not only the amount of the monthly payments, but the total of payments as well. This is the real cost of your loan.

Next, look at the security agreement. This explains the lender's rights if you fail to make your payments on time. These rights usually include the right to take the car and sue you for some of the remaining payments. The security agreement usually giv es the lender the title of the car until you have made all of the payments.

The Sales Contract

Whether or not you need financing, a used car dealer will probably ask you to sign a sales contract. The contract states your legal rights and responsibilities. Don't rely on what the dealer tells you. Read the contract for yourself; read it before you sign. The dealer must give you a copy.

Buyer's Protection

When you buy from a dealer, there may be warranties (guarantees) that protect you from hidden problems with the car. There may be warranties even if they are not written in the contract. These are called implied warranties. However, there are no warranties if you buy a car "as is". Look in your sales contract for the words "as is". They must be in LARGE or bold type.

The car comes with a warranty (and if so, what it covers), or
The car is being sold "as is".

Keep your buyer's guide sticker along with your sales contract and financing agreements. They are important documents.

Private Sales

A private seller may give you a better price than a used car dealer. However, the private seller may not be required to follow some of the laws that apply to dealers. Also, implied warranties do not apply to private sales. So, if a private seller makes a promise or an agreement, try to get it in writing.

Summary

A car may be the most expensive thing you ever buy. For this reason, you want to find a good car at a good price. Remember to shop around, compare prices and inspect the car. If you cannot pay all at once, shop for the best loan. Read all contracts before you sign. If you have trouble, think about all of your options, including legal advice.

Here are some useful sites to better your car buying experience...

Car Search * Auto Insurance Group * Car Insurance America * Auto Lease Co. * Car Buying * Car Insurance America * Tips * How to Buy Used Car * Buying auto insurance* Auto Reviews* #*