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Question: What can I do to make the best decision when
buying a used car?
Answer: A used car purchase is usually a big cost for
Consumers. Careful shopping can result in savings and good
transportation Here are some suggestions to help you make a good
choice.
Find a car that the dealer covers with a warranty by
checking the "Buyers Guide" posted on used cars. Select a car
with at least a 30-day, 100 percent warranty under which the
dealer agrees to pay all repair costs for covered items. Avoid
"As Is - No Warranty" cars.
Choose a safe car. Call the National Highway Traffic Safety
Administration toll free number (1-800-424-9393) to see if the
manufacturer has recalled the car for safety defects. If it has
been recalled, ask the dealer for proof that the defect has been
repaired.
Check with the state motor vehicle department to research
the car's title history. Make sure the car is not a "lemon
buy-back," salvaged or wrecked car. Get the written mileage
disclosure statement required by federal law from any seller and
make sure it matches the odometer reading on the car. Check the
title to the car before you sign on the dotted line.
Look carefully at the car in full daylight. Take it for a
test drive. Get a reputable mechanic who does not work for the
dealer to check it over, and pay for a diagnostic test. Ask the
mechanic if the car would pass a safety inspection, so you can
ask the dealer to make repairs before you buy the car. Check out
the frequency of repair records for used cars in Consumer Reports
magazine, which you can find at the library.
Don't sign the sales agreement on the spot. Check prices at
the library with the NADA Official Used Car Guide or through
used car pricing services.
Comparison shop. Handle your car trade-in, the used car
purchase, and financing as three separate transactions to get the
best deal on each. Get a written price quote before you talk
about your trade-in or dealer financing.
Shop in advance for the best deal in financing at your
credit union, bank or finance company. Compare their annual
percentage rate (APR) and total finance charge with the financing
offered by the dealer. Look at the total cost, not just the
monthly payment. Don't take possession of the car until the
financing paperwork is final.
Avoid high-profit, low-value extras sold by dealers, such as
credit insurance, extended service contracts, auto club
memberships, rust proofing and upholstery finishes. These extras
are often costly and unnecessary, or they are available elsewhere
at less cost.
For more information do an "auto sales" search on the web or
in the library catalog. You will find books and web sites that
have information on how to buy used cars and get the best deal
for your money.
Source: 1998-1999 Consumer's Resource Handbook
For more information, contact your local
Colorado State University Extension office.
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