Mistakes Made in Buying a Used Car

The mistakes made in buying a used car are simple mistakes that can be avoided. More people are buying used cars instead of new cars today, especially if there are two or more in a family. The average cost of a new car today is about $19,000 compared to $11,000 a decade ago.

But the problem isn't that the car is used, because with car leasing and one-person ownership, you can find very good deals on used cars in excellent condition and low mileage.

The problems come from not knowing where to buy, what to buy and how to buy. Let me explain some these for you.

If you're going to spend good money buying a used car, the first place you should go is to a car dealership. Purchasing a car directly from the owner creates problems because you won't have a warranty, you won't have a guarantee, and there is not much you can do if something happens 2 days after driving the car home.

Warranties only transfer if you buy from a car dealer, and of course the owner isn't going to guarantee the car. In the long run, that deal you got from the owner, may end up costing you a small fortune to fix. So if this is the route you take, just make sure you purchase the car for at least 15% lower than what a car dealership is asking.

The next mistake is going by the prices listed in a used car price guide. A lot of these guides aren't up to date, so the best thing to do is check your Sunday paper's classified section for at least a month. This way you can get a feel for what the price should be for the car you're interested in purchasing.

Next, don't make the mistake of buying a car, and not test driving it. I was surprised to discover than 60% of car buyers don't test drive the car, because they are afraid of being pressured into buying, or that test driving the car somehow means they are obligated to purchase the car.

The solution. Test drive the car. If you like it and it meets all your requirements and the price is right and you're satisfied with everything, then purchase the car.

Test driving could possibly uncover problems with the car that can be fixed before you buy it. But if you don't test drive it, you could also end up taking those problems home with you.

On the other hand, if you don't like the way the car drives, then tell the dealer thanks for the test drive, but no thanks to the purchase of the car. Then go on to your next stop.

People also make the mistake of purchasing company owned cars. These are some of the worst cars you could buy. They tend to have high mileage and low maintenance.

These are company cars, and the people who drive them aren't obligated to take care of them. So these cars are driven hard and basically dogged. Then the company trades them in for a new car.

Compared with a private owner's car of the same make, model and year... A company car will have more miles on it, not to mention more wear.

Always ask the salesperson if the car was owned by a company. He should know, and will either tell you, or he won't know. If he doesn't know, try doing the math.

Company cars generally average about 20,000 miles per year, compared to the 16,000 miles per year driven with leased cars. So either multiply the age of the car by 20,000 or divide the miles by the age of the car.

This should give you a general idea of how many miles the car was driven each year.

Last is purchasing a used car without checking the tires, the interior, under the hood, the trunk, the head/tail lights, the signal lights, the AC/heat, the radio/disk player and anything else you deem important.

Even car mechanics check these things before purchasing a car, so at least check the tires. Having to replace all 4 can be an expense passed on to the car dealer if you check them first.

Don't know anything about checking tires except for the old "looking and kicking." Well try rubbing your hand back and forth across the tires. If they are well balanced, they will feel smooth to the touch.

Also try the old "penny trick." Put a Lincoln penny - head down - between the threads. Run the penny around the tire. If you should see the top of his head at any point, then the tires should be replaced, because this indicates they are worn.

If you take the time to check under the hood, the interior, the radio and all the lights... this could save you a lot of heartache later.

Basically, the mistakes made in buying a used car can be avoided by knowing what to look for, and how to go about getting the best car for your money. Laws have also changed, that gives the consumer certain rights when purchasing a used car.

Unless pay raises catch up with the economy, there will always be a market for used cars. The mistakes that are made however, is not asking questions and not checking the details.