This information offers suggestions and tips to help you in the used car buying process. We can help you further. Visit our free purchase / lease analysis area.

MAKING AN INTELLIGENT PURCHASE

This guide offers suggestions and tips to assist you in the used car buying process. Its aim is to help buyers maximize the advantages of buying a used car while at the same time minimizing your risks.

What car should you buy? Good Question . . . .

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 used 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.

The Consumer Guide® Vehicle History Report can save you money and hassle by revealing a used vehicle's history, including title, DMV, odometer, major damage, recall, insurance and more. Ask friends, co-workers and others about their experiences and satisfaction with their cars, would they buy the car again?

Check auto and consumer magazines with records of various models. The annual Consumer Reports Guide to Used Cars can be particularly helpful in pointing out potential repair problems and troublespots.

Find out if a particular vehicle has ever been recalled for safety defects by calling the National Highway Traffic Safety Administration's (NHTSA) toll-free hotline (1-800-424-9393). Also visit SafetyAgent.com, this site will locate and even email specific recall information to you at your request absolutely free!

Check insurance rates with your agent when selecting a car; some cars cost more to insure than others.

Negotiating ( see negotiating tips )

For many transactions, bargaining is still part of the process. Bargaining can be exhausting. Many sellers, especially dealers, will try to convince you that the car you are looking at is "the best one you can find at that price." This is quite possible however, you should be sure in your own mind that the car is worth the asking price not because the dealer says so.

1. Getting the best price on the "new" car (see new car buying guide)

If the salesperson starts to talk about anything other than price (trade-in, financing, etc.), tell him or her that you will discuss that later, after you have agreed on the price of this particular car. Work on a cash price for the "new" car.

2. Selling or trading in your current car

Whether you plan to trade your present car or sell it yourself, you should know what its wholesale and retail value is.

Wholesale versus retail: The wholesale value of your current car is the lowest amount your car is worth. The retail value of your car is the wholesale value plus the profit someone will pay to buy your car. Typically, you will receive wholesale value for your trade-in at a new or used car dealer, and you will get the retail value if you sell it yourself. There is another term known as ACV which stands for "Actual Cash Value". ACV refers to the vehicles actual cash value before the dealer spends money on repairs, detailing the auto etc. This figure is always lower than your wholesale and trade-in amounts.

Selling your car yourself: You can get an idea for the wording of a newspaper advertisement in the classified section of your local newspaper. The ads can also give you a guide for an asking price of your present car. You can also request your free wholesale, retail and trade-in figures directly from WheelsDirect2U.com. Click here.

3. New and used car warranties, buying a car "as is"

The Federal Trade Commission's (FTC) Buyers Guide: By Federal Law, this must be displayed in every used car prominently. The Buyers Guide will tell you if the dealer is offering a written warranty on the car.

The FTC Used Car Rule specifies that it is deceptive for a used car dealer to:

Misrepresent the mechanical condition of a used vehicle.

Misrepresent the terms of any warranty offered in connection with the sale of a used vehicle.

Represent that a used vehicle is being sold with a warranty when the vehicle is being sold without a warranty.

Where warranties are given, they often differ, depending on the seller. Whatever the warranty, make sure it is understandable and in writing before buying the car. The warranty should spell out the parts and labor guaranteed, the length of coverage ( in miles and/ or days)., and a deductible charge for warranty service (if any). If the used car is a recent model, the original manufacturer's warranty may still be in effect.

Many used cars come without any warranties at all. These cars may be sold "as is" or "with faults," as long as this is fully disclosed in the FTC Buyers Guide.

Used car or dealer warranties: The best time to negotiate for a used car warranty is after you have agreed on a price for the car. If you try to get a salesperson to come up with a warranty before a price for the car is set, you will pay a higher price for the car.

Buying a car "as is ": If no written warranty is offered, the Buyers Guide tells you that the dealer assumes no responsibility for repairs and that you will pay all costs for any needed repairs. Usually, the dealer has no further responsibility for a car sold "as is" once the sale is complete and you drive off the lot.

If, during negotiations, the seller or dealer makes any promises about repairing problems with the vehicle, add each of these promises to the written contract. If the contract is silent about these items or describes the sale "as is," you will have a very difficult time enforcing the seller's oral promises later.

Implied Warranties: An implied warranty is an unwritten warranty of fitness. The principle of "implied" warranties is that any car you buy can be safely purchased on the assumption that it is roadworthy and will perform for a reasonable amount of time without undue expense or trouble on your part. The implied warranty may be denied by the seller, however, when you buy a car "as is. "

Know beforehand what the total cost will be, including price, down payments, the interest rate and monthly payments. (use the calculator and amortization schedule, (new window) Or click the link for a free purchase or lease analysis. This service will provide you with the complete cost, interest, dealer profit and expose any discrepancies on the dealers part. We have save our viewers thousands and thousands of dollars. Dealers have emailed us the dislike of this service simply because we expose the "back end" of the car business thus relieving them of substantial profits.

If the registration fee is paid to the dealer, the dealer can have as much as 30 days to forward it to your state's Department of Motor Vehicles.

Most state's Lemon Laws only apply to new cars still covered by the manufacturer's original warranty; most used car buyers are not protected so beware. ( see our lemon laws section )

Buying Used Continued

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