Good stewardship: purchasing a used car

[Tim]

Please suggest principles to keep in mind when purchasing a used car.

I am in the market for a mid-size sedan (saloon for the U.K. folk).

Here is what I am thinking - there is a big depreciation in value in the first year of a new car, so getting a car that is ~3 years old would put its value just after the steep part of the curve. Then, I think that "cost to own" and "reliability" rankings should be consulted. Perhaps it is as simple as that?

Suggestions?

 

[Scott1]

Sound thinking.

You can look for a used 1-3 MODEL year to find good value for money.

First, fix your budget, let that define your search.

Generally, you can get a 1 model year old for 25% less than brand new; even more depreciation on the options you want, e.g. 30-35% on those. E.g. a $20,000 car with a $1,000 sunroof will depreciate something like:

$19,000 x .75 = $14,250
$1,000 x .65 650

Total $14,900

Do research on-line, there are lots of resources.

If you want some personal recommends, PM me.

 

[One Little Nail]

Hello Tim, I would recommend when you're browsing for your "new" car & when you've found the one you're looking for,
to firstly pop to bonnet or I believe you call it a hood & take the radiator cap off before you've started the engine & look for any floating oily substance on the radiator water this could indicate that there is a problem with head gasket, check to see
that the water isn't rusty, if you notice these 2 things walk away, also if after starting the engine you take it for a test drive
if you notice any smoke upon starting the engine or whist you accelerate, walk away just make sure you stop first
after your test drive leave the engine running, go and take the oil cap off the top of the engine block and see if there is any
smell or sight of exhaust smoke as this will indicate the the rings are worn, if so walk away, if the car is an auto with the engine running handbrake engaged & foot on the brake pedal run through the gears 1 2 R P etc if there is a lag in the gear change or a ding sound or excess push it could indicate problems & very expensive repairs, walk away also, check to see if
vehicle has tow bar, it may have been used to tow a boat so car could have become partially submerged or used to tow heavy & excessive loads which cause strain on the engine & drivetrain.

the purchase of a secondhand car is a good choice as you can save 1,000's off the new car price, I purchased a Car 5 years ago for 1 Thousand Dollars, a Mazda 626 derivative, the way I see it is if you purchase a new vehicle for $30,000 & keep it
for 10 years you're outlay is already $3,000 a year & thats before you've spent any money on registration, insurance, fuel, servicing, tyres etc etc which you have to do anyway with a second hand car, I can honestly say that Ive spent well less than a $1,000 annually on average over those 5 years on mechanical repairs, so I'm well ahead $$$.

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[jwithnell]

I realize I'm likely to be in the minority, but since upkeep is critical to me, my choice has been to get a stripped down, smaller new car. That way, I know it has been scrupulously maintained. I'd rather crank the window by hand and know the engine is well cared for.

 

[Hemustincrease]

Get a German or Japanese car. They were built to last. Mine is 16 years old.
Also consider the mileage from the perspective of which big servicing job is about to come up. Some people sell just before the clutch needs replacing or cam belt etc. Better to buy a used car which has already had the 60 000 mile service done so both those jobs should have been done.

 

[Andres]

Buy used obviously. Cars depreciate greatly just after being driven off a lot. Do research on-line. Google which cars hold good value and which don't. Then utilize the internet to shop for a veh. There are multiple sites such as Cars.com, Carmax.com, Autotrader.com where you can easily search for vehs. Even if you aren't going to purchase a veh from one of these sites, I would utilize them to give you a good feel for what price is a good value. For example, when we bought our van a few years ago, I researched for months using these sites. I knew what a fair asking price was for the veh we wanted. Then we finally found a good veh with low miles but it was at a car dealership. Because my wife and I knew what a fair price would be for this veh, we were better prepared to negotiate with the dealership. That's the last tip - dont be afraid to play hardball. Dealerships are notorious for marking the price up on their vehicles, so you should always be able to talk them down some.

 

[Edward]

Perhaps it is as simple as that?

You've left out a couple of important steps. Check the Carfax. And when you find the 'perfect' car, take it to a mechanic you more or less trust, and have him check it out - including a compression test.

Get a German or Japanese car.

Honda, Toyota, Hyundai, Volvo in that order for reliability. German cars are well engineered, but parts can be horribly expensive, and NEVER take them to the dealer for work - only use independent garages.

Stay away from Chrysler, GM, Fiat, French and British made products.

 

[Afterthought]

As part of your research, make sure you understand what kinds of problems your kind of vehicle tends to have and at what mileage the vehicle tends to have them. Some used vehicles can have some pretty nasty repair expenses that might be looming in the near future when you purchase. Also, if you get the kind of vehicle that many people use (e.g., a Toyota), then it may be easier to find replacement parts.

 

[reaganmarsh]

Honda, Toyota, Hyundai, Volvo in that order for reliability.

I have a 1997 Honda Civic LX (which we bought used at a fair price in 2003) now with nearly 170,000 miles on it. I've really only done the regular maintenance and changed the oil. It runs very well and I've had almost no problems. My father-in-law drove his old Honda to just over 300,000 miles and it still ran well when he found he needed a truck instead. I intend to drive my Civic until it falls apart, and probably purchase another Honda to do it all over again!