Work Life Tips

The market has never been better for devotees of used cars. Dealer incentives on new cars have brought buyers into the market sooner than they may have otherwise entered it (that means a glut of high-quality used cars to pick from). The overstock at used car dealerships, low interest rates, and easy credit spell a great deal for savvy used car buyers. Thanks to market dynamics and the overall economy, used cars sold by new car dealers are actually selling for less than the levels reached in 2001.

If you are in the market, choose the car type you want (SUV, wagon, compact, hybrid, etc.), then focus on reliability and safety and crash test performance. You can find a list of top-recommended cars—as well used cars to avoid—in Consumer Reports’ Used Car Buying Guide.

Let’s say you have your eye on a used 2002 Volkswagen Passat, it passes the visual inspection, and your mechanic gave it a clean bill of health. Can you be sure it’s not a lemon?

The National Highway Transportation Safety Administration (NHTSA) maintains a free, searchable database of automobile recalls. You can simply enter the year, make, and model and you will be able to view a report listing any recalls that apply to the car. You can also check for recalls on car safety equipment while you’re at it (including child safety seats).

Now let’s say, according to the database, that your dream Passat had two recalls, one for tires and one for a problem with the fuel tank. Does that mean you shouldn’t buy the car? Nah! Take the NHTSA recall report back to the dealer, make sure the dealer fixes these items if they haven’t already been fixed, and by all means by the car if you want to.

If you want to avoid the possibility of buying someone else’s mechanically compromised used car, auto dealers have an solution for you: certified pre-owned cars. Dealers have so many top-notch pre-owned cars coming off lease in like-new condition that they created a certification program.

Certified used cars have been inspected and reconditioned, have generally low mileage, and are still under manufacturer’s warranty. In short, they are the cream of the used car crop. You are likely to pay more for a certified car (from a couple hundred to a couple thousand dollars more).

If you are considering buying a certified pre-owned vehicle, ask for specific details and evidence about which checks were done and what kind of reconditioning took place. You should also ask about a statement of warranty.

*Any dealer anywhere can “certify” a car, since there are no legal requirements or government oversight of pre-owned vehicle certification standards.

There is a large part of the car-buying population who won’t even consider buying a new car. In fact, used car sales outnumber new car sales three to one. Before you go to your local used car dealer, however, figure out which type of car best suits your needs and then research it well either online or at the library.

You can check safety and crash test ratings at several Web sites (including Hwysafety.org and Safercar.gov). You can find information on owner satisfaction at J.D. Power & Associates’ Web site. You can also find information on ownership costs at Edmunds.com and Intellichoice.com.

When you visit your used car dealer (which may well be the local new car dealer as well), how do you know you’re getting a truly reliable car? Aside from giving a car the obligatory kick in the tires, you should plan to take the car for a meaningful test drive under the same conditions you will most often be driving in. The following things are signs of trouble:

• Jiggling or rattling sounds

• Squealing brakes

• Warning lights lit on the instrument panel

• Pinging noises coming from the engine
• Clicking noises when making hard turns

Even if the car seems perfect, your best bet is to get a Carfax vehicle history report using the car’s vehicle identification number (VIN) from Carfax.com. You should also have your own mechanic check the car from bumper to bumper.

By and large, car sellers will make more on their old car than from a trade-in.
The risks and work associated with selling to a private party may give the trade in more appeal. Here are a few of the tasks and risks involved in selling a car a vehicle privately:

– With a private car sell, you may be opening your home to unsavory strangers
– To avoid any liability issues in regard to transferring the title of the car, the paperwork must be prepared for DMV documentation
– Drop insurance coverage as soon as your name has been removed from the title
– A current smog certification is required in certain states

Unlike the vehicle trade-in where most of the work can be performed online and consist of a few offers from dealers, selling to private buyer requires a little more work.

To take the guesswork out of calculating your vehicle trade-in value and test drive these smart strategies. Certain car owners will pay for a professional appraisal to assess the value of their trade in. The cost of a professional vehicle appraisal ranges between $30 to $300 dollars.

To save money and acquire a feel for the used car market, take your car to a minimum of three dealerships with used car lots. State that you are trying to sell your car.

After each dealer provides you with an offer, tally up the total of the offers, and divide the sum of each offer by the number or dealerships that looked at your car.

Take the final average and add ten percent to the amount. The total should provide an approximation of the wholesale value of your used car.

Trade-ins are undervalued by car dealers and over assessed by consumers. The value of the automobile trade-in is commonly misunderstood by consumers.

When consumers research the value of their car, the highest amount is not what most car dealerships expect to pay. Unfortunately, a trade-in is worth much less to a dealer because their target gross profit per unit is $1,200 and up.

When shopping around for a car dealer to trade in your used vehicle, look at the other cars on the lot. If you have a Saturn and most of the dealer’s cars are foreign imports, the chances of making the most from your trade in are nil. If you have a red Acura and three other cars on the lot are red Hondas, do not expect much for your trade in.

To maximize the value of your trade in, remember to size up a car dealership’s other vehicles.

Car dealers do not perceive or calculate trade-in value the same way a consumer does. The manager of a car dealership will calculate a trade-in and assign a price by taking the following steps:

– The car’s exterior condition will be reviewed (body damage, the paint, etc).

– The trade in will be evaluated and driven for a mile or so

– Track the vehicle identification number VIN at CarFax.com

– Look at the mileage, transmission, under the hood

As far as curb appeal is concerned, mileage and the condition of the body are important facets of the trade in value.

Calculate trade-ins by deducting the dealer’s maintenance costs. Regardless of the condition of your car, many dealers will charge a reconditioning fee of $500 or more.

The reconditioning fee will cover the cost of a safety check, car detail, smog check certification and other maintenance fees. If a car dealer makes a deal to trade-in your car, be sure to ask the following questions:

- Is the trade-in offer before or after reconditioning?
- Can you rollover the outstanding debt of your trade-in to your new car purchase? (Remember to refinance the rolled over loan to avoid a long term loan where you will pay more for the new car than its value).
- What is the wholesale and retail value of the trade?
- If you are under warranty with your trade in, ask the salesperson if he can recommend a new car with an incentive amount that covers your debt. This tactic will help you offset trade-in debt while eliminating the effects of a “rollover.”
- To ensure that you are getting the best deal, request a breakdown of each fee and credit associated with your trade in purchase of a new car.