| Deprecation will save you money on a used car | | | | repair costs a dealer will pay under the |
| loan, whether you buy from a dealer or a private | | | | warranty; > that spoken promises are difficult |
| party. But only one source is required to post a | | | | to enforce; > to get all promises in writing; > |
| Buyers Guide. | | | | to keep the Buyers Guide for reference after the |
| The average used car sold for about $13,900 last | | | | sale; |
| year; half of what a new car cost according to | | | | Buying a Used Car from a Private PartyPrivate |
| One reason for the sharp drop in used car pricing, | | | | sales are not covered by the Used Car Rule and |
| as Edmunds points out, is depreciation. | | | | don't require Buyers Guides. They are also not |
| . . . there is a steep decline in the car’s | | | | covered by the implied warranties of state law. |
| value in just the first year of the car’s | | | | That means a private sale is on an as is |
| lifefrom 20 to 30 percent. In other words, | | | | basis unless your written purchase agreement |
| that car that was worth $21,800 when it was | | | | with the seller says otherwise. So be sure to |
| new can be purchased only a year later for as | | | | have your own mechanic go over the car |
| little as $15,260. | | | | thoroughly. |
| Buying a Used Car from a DealerThe FTC Used | | | | Some used cars may be covered by a |
| Car Rule requires dealers to post a Buyers Guide | | | | manufacturer's warranty or a separately |
| on used cars. (Buyers Guides do not have to be | | | | purchased service contract. However, warranties |
| posted on motorcycles and most recreational | | | | and service contracts may not be transferable, |
| vehicles.) The Buyers Guide must tell you: | | | | so be sure to review the documentation before |
| > whether the vehicle is being sold "as is" or | | | | you buy. |
| with a warranty; > what percentage of the | | | | |