If you follow these simple steps? you won't drive away with someone else's headaches.
That new-car smell--not to mention the new-car paint job, the new-car upholstery and the new-car stereo--can be utterly seductive when it comes time to buy a vehicle. And for about 15 million people last year, that seduction led to a brief (or not-so-brief) courtship with new-car payments. But for 41 million buyers, seduction of another sort--lower prices--won out.
Almost three in four car purchases last year were made on the used-car lots. And even with all the rebates and incentives available on new-car purchases, used-car sales are projected to continue to grow strongly. For one thing, cars today are built better than ever before, so they're lasting longer. The most recent data available shows the average car on the road in 1996 was more than eight and a half years old, almost a year older than in 1990, according to ADT Automotive's 1998 Used Car Market Report. And the price of new cars--a bit over $20,000 on average--towers over the $9,000 sticker on the average used car.
But used-car buyers aren't just missing Out on the olfactory joy of driving a new car. They're also missing the peace of mind that comes with being the first owner. That's especially true in private sales, from newspaper ads and the like, which accounted for almost 11 million transactions last year. Dealers are bound by many federal consumer-protection regulations (though not all dealers have halos, of course).
Who knows what that shiny three-year-old coupe you've been eyeing has been through? Aside from just having some transmission problems, say, or a leaking oil gasket, it could be a lemon, a car with a chronic defect that the dealer was forced (under state law) to buy back from the original purchaser. It could have been soaked in a flood or flipped over in a hurricane. Like more than a million cars annually, it could have been totaled in an accident. Or it could have thousands of miles more than the rolled-back odometer indicates.
For cars with serious problems (the ones that could be the subject of deceptive sales practices), state laws vary. In Washington, for example, the Department of Licensing brands, or permanently marks (with "WA REBUILD" across the top), the titles of all cars six years old or newer that are totaled by insurance companies. Across the country in Tennessee, totaled cars get no special marking on their titles.
The National Salvage Motor Vehicle Consumer Protection Act of 1997 has, as the name suggests, been mired in Congress for over a year now, though it shows signs of moving forward sometime soon. The bill would set a federal minimum standard for labeling a salvaged car as such; if passed, it would ostensibly prevent the underground rebuilding industry from "washing" titles simply by taking cars across state lines and retitling them.
Until that federal standard comes into play (and even after it passes), it's up to you to protect yourself when you're looking for a used car. Even if a car isn't suffering from a major trauma, it could still be a headache waiting to happen.
Buy smartly
Car manufacturers are getting into the business of selling certified used cars, which is tantamount to buying new from the dealer (see the box on page 72). Since the companies are staking their reputations on the vehicles, you can be reasonably certain that they've been thoroughly inspected and repaired. Some carmakers, like Mercedes-Benz, have even placed their inventories of certified cars on the Internet, where you can search the database to find exactly what you want.
Some used-car superstores and dealers also tout their rigorous inspections. CarMax backs its cars up with a 30-day warranty, and many dealers offer some sort of warranty, too. Dealers are required to post a sticker on any used car they sell, indicating whether it comes with a warranty or "as is." You're entitled to read the warranty before you buy, and you should; make sure you understand what is covered and for how long.
Dealers are also subject to implied warranties on the used cars they sell. If you buy a car "as is" and it had a serious defect, you would theoretically be able to get repairs or replacement at the dealer's expense.
There are plenty of fine used cars--on dealer lots and being sold privately--that are sold "as is." The secret to finding one is to be aware of the warning signs that the car might not be the cream puff it's advertised to be:
* Body panels that don't quite match up, for example, indicate that part of the car might have been replaced after an accident. Doors or fenders that have rough or slightly different-hued paint, or are missing an accent stripe, are also flag-raisers.
* New tires on a car with low mileage could signal a rolled-back odometer. Ditto for excessive wear on the brake pedal, the upholstery or the carpet under the floor mats.
* Rust in the wheel wells or under the door panels means a new paint job could be covering a marred body.
* A different name on the car's title and the seller's driver's license should sound some warning klaxons about the sale's legitimacy; scam artists have been known to claim that they're selling a car for a friend, when in fact they're acting as unregistered dealers and selling rebuilt cars.
Wednesday, December 16, 2009
