Buy A Pre-Owned Vehicle

Now that the manufacturers and dealers are desperate for new car sales, they are literally fighting for your business. However, this mainly applies to new car sales, and this has opened up some good deals on pre-owned vehicles.

Face it, why buy a used car if you can afford a new one?

Now the problem is, not everyone can afford a new vehicle. Also, not everyone wants to buy a new vehicle.

This article is an attempt at helping you in a very important investment: Mobile Independence.

Before choosing a vehicle, you should ask yourself the following question:

• 1. Do I prefer to buy the vehicle from a dealer or a private individual?
• 2. Will the vehicle be used for business or private use?
• 3. Will this be my primary vehicle?
• 4. How concerned am I with fuel economy?
• 5. How many people will I be expected to transport?

After answering these questions, you should now have a good idea of the type of vehicle you would be interested in. Now is the time to research the models you are most interested in. Visit the forums and research any problems owners may be experiencing. Research pricing, fuel consumption, cost of service parts (oil filter, brake pads etc.) and any recalls.

Now is the time to visit prospective vehicles. Keep your eyes open to more than one choice. Visit as many prospects as possible, taking the time to do preliminary inspections.

Inspect the tires, making sure there is enough tread life. Make sure the tires are not showing excessive wear on the edges. Inspect the sidewall for any bulges, cuts or slices. Generally speaking, the tires will give you an idea of future suspension problems. Some may be caused by past accidents, some by worn bushings. Keep in mind these will cost you to be repaired.

Check for previous paint work, or rusting. Once again these can be signs for previous accident damage. Slowly rub your hand on the exterior of the vehicle. The paint should feel smooth, instead of a rough grainy feeling. Stand afar from the vehicle and look for color discoloration, especially on the doors or fenders. Open the hood and look around the engine compartment to make sure all panels are straight.

Now that you are in the engine compartment, check the oil and coolant. Pull the oil dipstick and look at the color of the oil. This should be a gold color and not black. The dipstick should have no signs of burnt oil or gunk. Also keep an eye out for any milky looking substance, which would be a sign of a blown headgasket. Replace the dipstick and remove the oil filler cap. Look on the inside for the previous signs of abuse. No white milky substance or gunk. The gunk comes from a vehicle that hasn't had its oil changed at regular service intervals. Replace the oil cap and move to the radiator cap. Remove and look for signs of rust or the same milky substance. Coolant should be blue, green or red depending on the manufacturer of the vehicle. Replace the cap and move to the interior of the vehicle.

Inspect the upholstery for tears, cigarette burns, stains etc. Lift the mats and look for signs of flooding. Listen to the radio, going through the preset stations. This will give you a general idea of the personality of the previous owner.

After selecting the vehicles you are most interested in, have a certified mechanic accompany you on a test drive. Have him do an inspection, especially the transmission oil. Also have him inspect the charging/starting system. Listen to his advice, as he is likely more experienced at this than you. However, don't be afraid to ask him questions. Choose your vehicle based on his input.

Now it is time for negotiations. Always make the seller work for the sale. Use your negotiation skills. You are aiming for the best deal possible. In the US you can aim for fair trade value plus $1000.00. If at a dealer, you can also negotiate for add-ons, like a free oil change.

If you are financing the purchase, I would suggest letting the lending agent work for your business also. Call the different banks and research their interest rates. Do not let them check your credit rating, since too many checks will lower your FICA score. Some banks will even haggle on the interest rate, although the reduction will most likely be low. Also keep in mind some banks still use compound interest loans, instead of simple interest. If you will be making double payments, I would suggest simple interest loans. If not, use which ever bank has the most affordable monthly payment. Keep an eye out for specials, where the banks will offer you reduced charges, or even better offers.

Hopefully this article will help you in investing in reliable transportation.