Buying a used car? Here’s a checklist for getting it right
You might think of personal style first when imagining the perfect used car, but it’s also about finding something that fits your budget and lifestyle. Here’s how.
Miles per gallon
Begin by looking beyond the sticker price. Your gas mileage can have a huge impact on the household budget, so it’s important to also keep in mind the efficiency of any prospective used car. This is especially true if you have a lengthy regular commute. A reliable source of information for the data you need is FuelEconomy.gov, which allows you to search for cars by make, model and year. Gas-mileage ratings are measured on this federally managed site by the U.S. Environmental Protection Agency. Keep in mind, however, that there can be some variance on miles per gallon, based on the climate where the owner lives, wear-and-tear and how conscientious the previous owner was about maintenance.
Insurance premium
Again, this goes to pocketbook choices, rather than lifestyle choices. That shiny red sportster will certainly look great in the driveway, but you might also see your insurance premiums soar. Can you afford that? Rates vary greatly depending on the vehi
cle, as do deductibles. Discuss buying a high-performance or sportier vehicle with your insurance agent before you open your checkbook. They can give you a concrete idea about the costs you’ll have to manage.
Reliability rating
Owning a used car that provides long-term reliability is its own kind of money saver. Consumer Reports remains a leading expert on which vehicles are going to stay on the road the longest. Things like regular maintenance will always come into play, but these ratings give you a good jumping off point early in your search. Buying a car with the great reputation for reliability can give you a little more confidence in your choice.
Resale value
Some brands and makes maintain a higher value over the years, while others fall quickly behind. This information is critical too, since you’re likely to sell the car at some point in the future. Sources like Kelly Blue Book or Edmunds are great places to start. The higher your used car is valued over time, the better your return on investment will be when it’s time for the next one.
What is Certified Used?
The biggest worry with used car buying has always been the risk of getting stuck with someone else’s old lemon. Certified used cars take away some of that stress.
Getting certified
Used car-certification programs vary widely, so be ready to ask the right questions. A thorough inspection is the key to achieving this certification, so find out who performed it. Factory inspections involve the manufacturer who originally built the car. Dealer inspections are performed in-house, while independent inspections are contracted out to third-party companies who inspect and certify the vehicles.
Contact the inspecting entity and ask for a detailed report on what exactly was checked, what passed and what’s not covered. Then don’t be shy about getting a second opinion from your own trusted mechanic.
Financing and warranty
Next, ask whether their program includes an extended warranty or low-interest financing. The fine print will give you an idea of the difference in pricing for certified and non-certified cars of the same make, model and year. Certified cars should have better terms and longer warranties than their non-certified counterparts. Savvy shoppers end up paying less for a car that’s far more reliable. The dealer may simply extend the newcar warranty, add additional benefits or in some cases extend the warranty to bumper-to-bumper coverage — even if it’s already expired under the original policy.
Transferring benefits
Every certified used car agreement comes with limitations and exclusions. Read everything thoroughly to find out how your prospective car is to be paid for and covered. There may be mileage limits, for instance, rather than a warranty end point based on a month or year. You’ll also want to ask about whether you can transfer the certified benefits to a new owner, should you choose to sell the car before the warrant expires.
That piece of information becomes an excellent sales point that might fetch a higher resale price.
Is it nationwide?
Finally, ask if the manufacturer’s warranty is nationwide through the brand’s network of dealerships. Having access to service departments across the United States makes decisions to travel on vacation, to transfer to another job, or to sell the vehicle a little easier to make.
You’ll have peace of mind knowing that your certified used car can be easily repaired if something were to unexpectedly fail.