| There are two basic ways to buy a used car | | | | will lose in value. Two cars may cost $8,000 each |
| cheap, and one good reason: To save money. It | | | | used, but one may be worth $6,000 a couple |
| isn't just that they cost less to buy initially. The | | | | years later while the other is only worth $4,000. |
| research shows a four-year-old car can cost 40% | | | | You can research resale value online, or study a |
| less over its lifetime. That's including the costs of | | | | used-car price guide to see which models have |
| gas, oil, repairs, insurance - everything. This is why | | | | retained the most value over the years. |
| almost half of the millionaires in the United States | | | | Get The Right Price |
| buy used cars, according to Thomas Stanley and | | | | The second part of buying a used car for less is |
| William Danko, authors of "The Millionaire Next | | | | to negotiate a lower price. You don't have to be a |
| Door." | | | | master negotiator to do well, but there are a few |
| Buy The Right Used Car | | | | tricks you should know. The first is to have a |
| The first approach to buying a used car for less is | | | | good idea of what the car is worth. Get out that |
| to look for the cheapest "type" of car for your | | | | car price guide, and look for the wholesale cost. |
| purposes. Some cars just cost more than others, | | | | Make your first offer lower than that. What else |
| both to buy and to operate, so look for the | | | | can you do? |
| lowest-cost one that will do what you need. In | | | | - Spend some time looking at the car. If you are |
| other words, whatever your negotiating skill, a | | | | interested, spend some time with a car and |
| four-year-old Jeep Wrangler is still going to cost | | | | owner or sales person. Negotiator refer to this as |
| more to buy and run than a four-year-old Ford | | | | "time investment." The more time the seller has |
| Escort. So if you don't need the four-wheel drive | | | | invested with you, the more they want to sell to |
| or space of the former, consider the latter. | | | | you, so as not to "waste" that time. It has been |
| Here are some of the factors to consider when | | | | shown that you can get a lower offer accepted if |
| looking at the overall cost of a vehicle: | | | | you first take more of the sellers time. |
| - Price. You can look in one of the popular auto | | | | - Hint at the problems. Look at the engine and |
| "blue-books" or price guides to see what used | | | | under the car, even if you aren't sure what you |
| cars are selling for. The accuracy of these may | | | | are looking at. Point out any problems you see |
| be suspect, but they do give you a good idea of | | | | politely, but never contradict or insult the seller in |
| the relative values, so you can compare various | | | | any way. You want the seller to like you but start |
| models. | | | | to doubt the value of his car. |
| - Repair costs. At a public library you can find a | | | | - Be ready to walk away. Unless you really need |
| copy of the Consumer Reports auto edition. They | | | | a car today, always be ready to say, "I'll think |
| have ratings for all the major systems and parts | | | | about it," and leave. This is one of the oldest and |
| of different models, and usually an average annual | | | | surest ways to get price concessions. Sales |
| repair cost for them as well. | | | | people in particular know that when people "think |
| - Mileage. You can ask an owner about the | | | | about it" they rarely return. They will usually make |
| mileage he or she gets, and try to gauge their | | | | their best offer at this point. |
| honesty. Alternately, there are websites like | | | | - Have a mechanic look at the car. If you can't |
| fueleconomy.gov where you can find fuel | | | | bring the car to your mechanic, have a friend with |
| economy figures for used cars. If you drive | | | | some mechanical knowledge come with you to |
| 20,000 miles per year, the difference between 20 | | | | look at the car. It isn't necessarily cheap if it |
| miles-per-gallon versus 34 MPG is an extra 412 | | | | breaks down a week after you buy it. Also, |
| gallons per year, or $1,240 at $3 per gallon. | | | | everything that your friend or mechanic finds |
| - Insurance. Some cars cost more to insure. Ask | | | | wrong is a negotiating point that may result in a |
| your insurance agent about the cars you are | | | | lower price. |
| considering, to see if there is a big difference in | | | | Quick review: To buy a used car for less, look at |
| costs. | | | | the right cars - the cheapest for your needs - |
| - Resale value. If you intend to drive the car for | | | | and then negotiate the lowest price you can. |
| just a few years, you have to consider what you | | | | |