Ford Focus SUV
The used car market is increasing by the day and consumers are assailed by information from print ads, television, and the Internet on where to find the best deal. The following guide is not only meant to help out a person with their first used car purchase but should be applicable for any other car purchases in the future. There is a lot of information available to the curious consumer and this detailed list should provide a thumbnail sketch of the used car market that is easy to digest.
Used Car Necessities
Before a person goes to buy a used car, they need to know a few specifics before taking that purchase on the road. Used car owners need to first have a valid driver’s license and auto insurance, which can be found either online or at local insurance providers which can be found in local phone books. Another good way of determining which auto insurance to take on is to ask friends, family, or co-workers, who may have a better feel for a particular company. Along with the license and proper auto insurance, a used car owner, depending on state law, will have to register their car with the state department of motor vehicles along with any other fees that may apply. While these are typically one-time fees, they can add up and should be considered part of the used car budget. Finally, a used car owner needs to make sure that the transfer of car title to them is both valid and legal. With a used car from a dealership, this is not typically a problem but someone looking to purchase a used car from a private lot or an individual should consult their local and state laws and perhaps a legal expert in order to ensure they have made a proper transaction.
Pros and Cons: Dealerships versus Private Lots
For those looking to purchase a used car, the next consideration after figuring out what necessities comes with the purchase is to figure out where to purchase their used car. Outside of online web sites that are becoming more heavily trafficked, the two major options for those looking for a used car are dealerships and private (or unaffiliated) lots. A dealership deals in a specific type of car (i.e., luxury vehicles) or make/model of car (i.e., Toyota, Ford, Volkswagen). A private lot is owned typically by a local individual who is not affiliated directly with any particular motor company and whose inventory is a combination of local trade-ins and factory overstock. There are several advantages and disadvantages for both dealerships and private lots.
Dealerships come fully stocked with brand information, helpful and experienced salesmen for that particular brand, and great maintenance facilities for your used car purchase. There is a certain sense of comfort from purchasing from a certified Saturn or Toyota dealership because they can more readily provide brand parts than a private lot. As well, there are usually several steps of customer service and car inspection that not only gives comfort to worried used car owners about the condition of their car at purchase, but also gives them the knowledge that they have a place to go in case of questions. However, big dealerships can be intimidating to first time used car buyers and even for those who have purchased a vehicle before, dealing with a dealership is not always a picnic. Unlike private lots with a smaller customer base, dealerships have to juggle many customers at the same time and can’t commit their resources to an individual consumer on a round-the-clock basis. Finally, used car buyers may not be able to find the same deals at a dealership as they can find at a private lot.
Private used car lots offer a more intimate shopping experience, typically taking up a small portion of the space of a dealership. A private dealer often has a more eclectic inventory than a dealership because they are not beholden to a specific make or type of car. As well, with the owner often stepping out to make a sale, used car buyers can often find better deals at a private dealer because of more personal negotiations. However, because of the increased power of private dealers outside of the dealership environment, some consumers may overpay for a used car or truck without knowing if the sticker price is legitimate based on mileage and model year. As well, unlike a dealership, consumers can only get what they say at a private lot instead of putting themselves on a wait list or engaging the resources of a dealer like Ford or General Motors to get the car they like.
Car Types
There are seven types of cars that a person can choose from: small car, mid sized car, full-sized car, sports cars, trucks, sports utility vehicles (SUV), and vans. Small cars, like the Ford Focus and the Toyota Corolla, are usually called entry level vehicles because they are the types of cars typically purchased by first-time car buyers. Small cars, while having less cargo room and passenger space, are usually very affordable and great fuel efficiency because they have less weight to carry.
Mid-sized and full-sized cars offer much more cargo room than small cars, have decent fuel efficiency, and come in a wider variety of models than entry level cars. Hatch backs offer a slight bit more room than the entry level cars with a signature back hatch that lifts for access to trunk space. Sedans and wagons offer much more space than other types of mid-sized cars and are usually loaded with solid safety options for families and those who travel quite a bit. Full-sized cars, like Ford Crown Victoria or the Toyota Avalon, offer a big frame, good safety, though often have poor gas mileage.
Sports cars and convertibles like the Porsche Boxster and the Lotus Elise are great looking automobiles that are usually very expensive and seen sparingly on highways and city streets. Convertibles are a staple of suburbs and coastal cities where people with the money to purchase such a car can show off their vehicles. While these cars can get up to some great speeds, they have poor safety and fuel efficiency ratings and are not practical for families and those who have a tight transportation budget.
Trucks, sports utility vehicles, and vans offer some of the same traits in different model shapes. Trucks are typically durable and have stronger engines than cars or vans in order to carry a lot of materials and have good safety ratings because of their strong frames. Sports utility vehicles like the Hummer and the Toyota Highlander offer a similar ride as a car with the power of a truck, which has become appealing to a great number of families looking for safety in their automobile purchases. Vans like the Kia Sedona and the Chrysler Town & Country offer the best storage of all of the aforementioned vehicles classes but can be cumbersome to drive for those who don’t have multiple passengers or a lot of material to move around.
Costs of Owning a Used Car
Like any major consumer purchase, a used car can bring a lot of additional costs after the initial purchase from the dealership or private lot. The major cost that must be accounted for throughout the ownership of a used car is the various maintenance issues that come along. Oil changes, flat tires, occasional dents and dings add up to a small fortune over the life of an automobile. As well, it is important to consider the reliability of a particular make and model before purchasing to keep down the number of repeated trips to the auto shop.
Another major cost of owning a used car, and one that has become newsworthy over the last couple of years, is the amount of gasoline that needs to be purchased on a regular basis. Automobiles like the Toyota Corolla, the Honda Civic, and the Scion xB have great fuel efficiency, meaning less time and money at the gas pump. Conversely, purchasing a Hummer or a Ford Escape means a greater financial burden at the gas pump and a higher transportation budget overall.
Finally, there is the more vague measurement of how efficient a car is in terms of time and money. Used car owners need to consider the aforementioned fuel efficiency and maintenance costs along with commuting time to work and other tasks and the total amount of time spent with the car. While the increased time spent in traffic commuting to work and travel is a reality we all have to deal with, a person shouldn’t spend every waking moment worrying about the quality of their vehicle or how much money they have to spend weekly or monthly to keep it running.
Where to Buy Used Cars From
There are many great places to buy used cars, both online and in person. Many dealers, like Ford and General Motors, have overstock sales on cars that they haven’t been able to push over the last couple of years. These sales are comparable to the end of year sale where dealerships like Toyota are trying to push last year’s models, both used and new, to make space for new, current year models. As well, used cars can be purchased at local private dealers and by looking through classified sections to find a deal from an individual in your neck of the woods. The most important tool a person can use in figuring out where to purchase a vehicle is to use online investigative resources like CarFax, which allows a person to look up a VIN (vehicle identification number) and see all of the accidents and other events that may influence that particular car’s performance. The best piece of advice is to look to “newer” used cars, perhaps a 2004 or 2005 model, to find a middle ground between price and reliability.
Accessories
Used car owners can purchase a number of additional items for their new automobile. One of the most obvious choices for many people who buy used cars is to add some power and quality to the manufacturer-installed sound system. Along with a new radio, which can improve sound quality, used car owners can add new radio tuners, CD players, and satellite radio receivers to turn a used car into a multimedia center. As well, many people purchase speakers and amplifiers in order to make their music experience more enjoyable. These items can be purchased at dealerships and at electronics stores like Radio Shack and Best Buy.
Other accessories that can be added to cars allow the car exterior to go from used looking to the appearance of a brand-new car. Tinted windows give the driver and passengers privacy while new wheel rims can dazzle the eye and make a used car look great. In addition, used car owners can add spoilers and decals onto their used car in order to make it more reflective of their personality. These are only a few of the possible accessories that can be added onto a used car and many of these can be purchased from local specialty stores, automotive stores, and on occasion from car dealerships.
Financing Options
For used car financing, there are typically two financing options with a couple of sub-options that can cut down on the cost of a car purchase. The two financing options are to outright purchase the vehicle and to lease the vehicle for a fixed term, typically three years. However, companies like Saturn and Toyota have started to offer lease-to-own options on new and used cars, which allows people with only a little bit of money to get into a car that will eventually be their own. Financing depends largely on where the used car is purchased or leased.
With a used car purchase, there is typically a down payment that gives a certain amount of money up-front to the dealer in good faith for future payments. At the time of purchase, customers and dealers negotiate payment options and extras like option warranties and service agreements. With a used car lease, there is typically a higher down payment than on a used car purchase but lower monthly payments for the term of the lease.
For private lots, these options may be available but often the prices are low enough for someone to pay up-front for a used car. The benefit of paying up front is that there are no payments, though it can still be quite pricey even for an inexpensive used care. As well, making payments to a dealership or higher-end private lot allows more financial flexibility over the purchase term.
