| Most new cars lose $1,000 to $2,000 of their | | | | like the actual mileage on the car (trusting the |
| value the second you drive them off the lot. That | | | | odometer is not wise). When you combine the |
| alone means buying used can be a very smart | | | | CARFAX report and your mechanic's inspection, |
| money decision. | | | | you can be pretty confident you're getting what |
| But the loss in value in the first three years is | | | | you think you are getting. |
| what really counts. Most new cars are worth only | | | | Third, consider where you'll buy your used car. Will |
| 60 to 70 percent of their original price within three | | | | you buy from an individual or from a dealer of |
| years. That's a big price to pay for that new car | | | | some kind? You might get a great bargain buying |
| smell. | | | | from an individual, but that bargain might not be |
| That said, buying a used car is a bit like rolling the | | | | as good as you think. Dealers often have |
| dice. Somebody else owned it and did things to it | | | | certification programs for their used cars, and |
| that you might not know about just by looking. | | | | might even give you a warranty. That can be |
| He is also selling it for a reason. Was it submerged | | | | worth the higher price you might pay. |
| in a river for a few days? | | | | Fourth, pay the right price. This is a little |
| So you need to do a little more due diligence | | | | subjective, but there are some reasonable |
| when buying used in order to save yourself hassle | | | | guidelines you can follow: |
| and headache. | | | | - $10,000-19,000 is a reasonable price for a |
| First, have your own mechanic check it out. Make | | | | decent car that's three or four years old |
| an appointment and leave your current car with | | | | - A "cheap" car ($1,000-2,000) probably is going to |
| the seller as collateral. If your mechanic gives the | | | | have very high mileage and cost you a lot more |
| prospective vehicle the thumbs up, you're in good | | | | in maintenance |
| shape. You can get good deals on used cars on | | | | - Old cars are cheaper, but they also are less |
| eBay, but your risk goes way up when you have | | | | likely to last; cars three to five years old often |
| to buy a vehicle without getting it checked out. | | | | are the "sweet spot"-relatively low price and |
| And definitely never sign a contract or hand over | | | | several remaining good years of trouble-free |
| any deposit money until you have had the car | | | | mileage |
| checked out. | | | | Buying a used car does not have to be a risky |
| Second, check the history of the car. You can do | | | | strategy, just like buying new is not necessarily |
| that by the VIN number. Visit Carfax.com, pay | | | | risk-free. If you do the due diligence you have |
| about $25 and you'll get a report on the car | | | | just read about, you can buy used smart, which is |
| you're considering. This won't guarantee you don't | | | | probably the smartest car purchase you can |
| get a lemon, but the report will show you things | | | | make. |