Tips for Buying Used Cars - How to Find a Good Used Car

Used-car dealerships, on the other hand, tend to sell cars with higher mileage and more wear and tear than the trade-ins on the new-car dealer lots. The pricing in some used-car superstores can be nearly one percent higher than prices at franchised dealers. The cars tend to be rental and corporate fleet vehicles, which may have taken a beating at the hands of multiple drivers.

It's fine to visit the superstores and take a printout, but then head over to your local dealer and see if you can cut a better deal.

Leasing Companies: All of the cars getting turned in when leases expire can make things very tough on leasing companies. If the leaser doesn't buy that car at the end of the lease (and a lot of people don't), that leaves some nice bargains for the savvy buyer.

Car Rental Agencies: Car rental agencies often sell older cars that have been with them around six months and have between 8,000 and 15,000 miles. Rental cars are notoriously abused by drivers, but this fact is also reflected in the price. You may be able to get an excellent deal. In fact one of the things to consider is that fleets of any kind generally maintain a vehicle more conscientiously than the average consumer does.

Newspaper classifieds are an iffy source. You might get a good price in a private sale, but if something goes wrong with the car you won't have much recourse.

Avoid Buying a Lemon

Wherever you take a serious look at a used car, follow these steps before you commit to buying:

• Test-drive the car and take it to a professional mechanic who is familiar with used-vehicle inspections. Be sure your mechanic lists the items he or she checks and get his or her opinion on the overall condition of the car. Usually a mechanic will check out the car for a fee of $100 or so, and report any repairs that might be needed. You can then either buy the car at a reduced price that takes into account the cost of the repairs, or walk away if the car doesn't seem to be in good shape.
• Ask the seller for the car's maintenance records. A person who kept good maintenance records probably took good care of the car.
• Get proof of past ownership. Many dealers will provide a vehicle history cost at no or low cost. A car's title history can be tracked with a single phone call.

You can get a vehicle history report on any car registered anywhere in the United States or Canada through CARFAX. Call them during business hours at 800-444-0145, or check them out online at www.CARFAX.com. You can get a variety of reports (some free, some for a charge). CARFAX can also help verify the odometer reading on the car you want to buy is accurate. CARFAX says that of the cars they report on, 1 in 10 show a mileage discrepancy.

Keep in mind that if the report turns up some problems, these problems become negotiating tools. You should either ask the dealer to have the problems fixed— without increasing the cost, of course—or insist on a lower price so that you can use the difference to have your own mechanic do the work that's needed.

If everything checks out and you're getting a fair price (you can compare at sites like www.autotrader.com), then you may have found your next car. And you won't have to absorb the depreciation costs!

Check out these articles for more car smart tips:

• How to Choose a Good Mechanic
• When Your Warranty Really Expires
• 5 Tricks Car Dealers Use