~ The Used Car bs Buyer’s Manual HOW TO FIND THE BEST BUY ON A USED CAR INCLUDES DIRECTORY OF RELIABLE USED CARS Mil ; AND VEHICLE INSPECTION CHECKLIST Lwii 20102437 , The Used Car Buyer's Manual HOW TO FIND THE BEST BUY ON A USED CAR DAVID J. BUECHEL PYRAMID West PUBLISHING_Disclaimer The purpose of this book is to educate and entertain. It is designed to provide information in regard to the subject matter covered. Every effort has been made to make this manual as complete and as accurate as possible. However, in the purchasing of a used car, there are problems, both observable and unobservable, that are too numerous to cover in a book. Therefore, the buyer assumes all risks and should always beware when purchasin; The author and Pyramid West Publishing shall have neither ability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to be caused, directly or indirectly by the information contained in this book. This manual should only be used as a general guide and not as the ultimate source for car buying. The Used Car Buyer's Manual Copyright © 1995 by David J. Buechel All rights reserved, No part of this book may be reproduced in any form or by any mechanical or electronic means including information storage or retrieval systems without permission in writing from the publisher, except by a reviewer, who may quote brief passages in a review. Printed in the United States of America. For information address Pyramid West Publishing, P.O. Box 830, Newbury Park, CA 91320. Illustrations by Edward J. Buechel First Edition Library of Congress Catalog Card Number: 95-70448 ISBN 0-9647780-0-9Acknowledgments First of all I would like to thank my Mother and my Father for teaching me some smarts. Thanks, Dad, for the expert illustrations, too. Not bad for an ex-sign painter. I would also like to thank Linda Jordan for her patience, understanding, and moral support and all the free photocopying; proofers Lori Lord, Allyson Martin, and _ Terri Nigro, who bailed me out of punctuation hell; and John Thomson who also made a contribution to this book. SS »TABLE OF CONTENTS Introduction PART I: HOW TO BUY A USED CAR FROM A PRIVATE PARTY Chapter 1: Research 13 1. The Good, the Bad, and the Ugly 13 2. Used Car Classifications 14 3. Options to Consider 15 4, Best Used Car Bets 16 5. The Library 18 6. The Blue Book 19 7. Recall Information 20 8. Resale Value 20 9. The Phone Book 21 10. Word of Mouth 22 II, Selecting a Mechanic 23 12, Scan the Ads 23 13. Financing 26 14. Auto Insurance 28 Chapter 2: The Search 29 15. Are You Ready? 29 16. Interpreting an Ad 30 17. Questions to Ask 30 18. Get an Appointment 35 19. Excuses, Excuses 36 20. Cars with Out-of-State Plates 37 21. City Miles Vs. Freeway Miles 38 22. Don't be Hasty 38 23. Dangling Carrots 39 Chapter 3: Checking Out the Beast 41 24. Some Firsthand Tips 41 25. A Word About Color 42 26. How to Check for Body Damage from an Accident 43 27. How to Check for Body Damage from Rust 46 28. Tires and Suspension 48 29. Fluids to Check 49 30. Check Air Filter, Belts, and Hoses = 50 aul31. Things to Leak Out For 51 32. California Emissions 53 33. The Tail Pipe | 54 34. Check the Glass 54 35. About Sunroofs 54 36. Interior 55 37. Luggage Compartment 56 38. Flood Cars 57 Chapter 4: The Test Drive 59 39. Listen with Your Ears 59 40. Check the Brakes 61 41. About Brake Noises 61 42. Check the Alignment 62 43. Check the Transmission 62 44, The Open Road 63 45. About Receipts 64 46. The Character Thing 65 47, A Waste of Time and Money? 66 48, Going to Your Mechanic 67 49. Double Check for Recalls 68 Chapter 5: Negotiating 71 50. Phase 1: Preconditioning 72 51. Phase 2: Negotiating Before the Mechanic's Inspection 73 52. Phase 3: Negotiating After the Mechanic's Inspection 76 53. Emotion Control 78 54, Other Negotiation Tips 79 55. Transfer of Vehicle Ownership 80 56. Salvage Titles 82 PART Il: HOW TO BUY A USED CAR FROM A DEALER Chapter 6: Dealing With Dealers 85 57. The Way Dealers Work 86 58. A Word on Financing 86 39. To Be or Not To Be Alone 87 60. Choosing a Dealer 88 61. Before Going to the Lots 89 62. What to Expect at the Lots 90 63. Getting Focused 90 64. The Games Dealers Play 9365. Buyer Tactics 97 66. Dealer Add-Ons 101 67. The Trading Game 102 68. Warranties 103 69, Lemon Laws 104 | 70. Another Word on Financing 105 Chapter 7: Dealer Negotiations 107 71. Your Approach 107 | 72. Negotiation Scenario W1 108 | 73. Negotiation Scenario #2117 74. A Few Last Tips 133 PART Ill: HOW TO SELL AND CARE FOR YOUR USED CAR Chapter 8: Selling Your Used Car 137 ‘75. Prepping Your Car for Sale 138 76. The Lazy Person's Way 139 77. The Person-with-a-lot-of-Energy Way 139 78. California Residents Only 140 79. Asking Price 140. 80. Advertising 141 81. The Phone Calls 143 82. The Appointment 144 83. Negotiating 146 84. A Few Last Tips 148 etepiet 9:CarCare 151 85. Your Owner's Manual 151 86. About Oil 153 87. Oil Bumers 154 88. Other Fluid Concerns 155 89. Lube Centers 156 90. Ties 156 91. Engine Ping and Gasoline 157 92. Tune-Up 158 93. Repair Fraud = 158 94. Engine Warm-Up 159 95. Car Care Tips 160 Appendix A: Directory of Reliable Used Cars 166 Appendix B: Vehicle Inspection Checklist 168Introduction First of all I would like to thank you for purchasing this manual. You have just made a smart move, use this book is designed to u time and money. And time and money will indeed be say I guarantee it. As with any written information, you will benefit the most by studying and memorizing what is being presented to you here. All the chapters have been written in easy-to-understand English, and all the crucial information has been printed in capital letters, so DON'T FORGET WHAT IS WRITTEN IN CAPS! The Bes part of The Used Car Buyer's Manual focuses on buying a car from a private individual. I notice that all the other car buying guides currently on the market seem to miss the boat on this subject by usually only ore small chapter. This is an area I emphasize because you it most by avoiding the dealers and negotiating with someone who is on the same level as you. The used car lots should be left as a last resort. However, if you reach the point where you must buy through a dealer, you need not worry. I offer plenty of information in the second part of my book: How to Buy a Used Car From a Dealer, This is where I go into detail on everything from dealer shenanigans to, well, dealer shenanigans. Unlike all the other car buying guides available, I offer a reliable used car directory in Appendix A which can save you time and legwork by immediately suxtng you off on the right foot. Everyone knows that not all cars are created equal. Instead of having to spend hours at the library reading up on automotive ratings to weed out the reliables from the undesirables, I have already done that for you. This creates a nice shortcut to making a smart used car investment. As for the auto inspection, there's no need to take notes. I have already done that for you too. In Appendix B you will find a comprehensive inspection checklist which I welcome you to photocopy (for personal use, of course). It follows the steps in Chapters 3 and 4 almost verbatim, making it as convenient as possible for you to perform a thorough inspection. As you can see, I tried my hardest to take the misery and the mystery out of buying a used car. But I didn't stop there. In the third and final of The Used Car Buyer's Manual, I detail how to sell your car for the maximum amount of money, while offering advise and tips on car care.I spent a year of my life writing this manual and the previous 16 years at the school of hard knocks learning it. Now the ball is your court. With a little time and effort on your part, you can learn in a week or two what took me many years (and much, much more $$$) to leam. Now, without further adieu, thanks again and good luck!PART I: HOW TO BUY A USED CAR FROM A PRIVATE PARTY13 CHAPTER 4; RESEARCH THE GOOD, THE BAD, AND THE UGLY Why research? Because research will reveal the good, the bad, and the ugly things we need to know about cars BEFORE we buy. You wouldn't want someone else's problems, would you? Start thinking of a used car in terms of an investment. After all, it IS an investment. You need dependable transportation to commute to work so you can make a living, night? A second-hand car that continuously breaks down, drains you of your hard-earned money, and depreciates radically would certainly be a bad investment. However, a reliable auto that never needs anything beyond normal maintenance will depreciate gradually—making it a good investment. That's what this chapter (and the rest of the book) is all about, separating the good from the bad and the ugly. The first part can all be done on paper, through research, long before you look at any cars for sale. That’s the beauty of buying used. With little difficulty, you can find out which cars offer the best track record. The second part is finding one of those dependable cars that has been well cared for by its past owner(s) and selling at fair market14 THE USED CAR BUYER'S MANUAL value. In order to capitalize on this kind of investment, you must do your homework. IT ALL BEGINS WITH RESEARCH! Before we continue, I must assume that maybe you don't know a thing about cars. If so, just let me clarify. You will see the words make and model used frequently in the coming pages. Just so there isn't any confusion, make refers to the auto maker, like Ford, Chrysler, and Toyota, while model refers to the maker's product line, like Mustang, LeBaron, and Corolla, respectively. Another term I use frequently is “bargaining leverage." What I mean by bargaining leverage is, say you looked at a car that was selling for $5,000 and discovered that the car needs new tires. You would then use the cost of new tires as a reason to lower the price. In other words, if new tires cost $300, then you would naturally expect to get the car for $4,700. You're using the worn tires as bargaining leverage. USED CAR CLASSIFICATIONS If you already know the type of car you want, fast forward to the Best Used Car Bets section on page 16 and seriously consider the cars from my personal picks list. However, if you are uncertain as to what type of car you want at this point, then you have a few more decisions to make. The following autos have been categorized by size and type to help you place yourself and narrow your focus. DO NOT CONFUSE THIS LIST WITH MY PERSONAL PICKS. LIST. Small Cars Some examples are: Chevrolet Cavalier, Dodge Colt, Eagle Summit, Ford Escort and Festiva, Geo Metro and Prizm, Honda Civic, Hyundai Excel, Mercury Tracer, Nissan Sentra, Plymouth Sundance, Pontiac Sunbird, Subaru Justy, Toyota Corolla and Tercel, and Volkswagen Fox, Golf, and Jetta. Mid-Size Cars Some mid-size cars are Buick Century and Regal, Chevrolet Corsica and Lumina, Chrysler LeBaron, Dodge Dynasty, Ford Taurus and Thunderbird, Honda Accord, Mazda 626, Mercury Cougar and Sable, Mitsubishi Galant, Oldsmobile Cutlass Ciera and Cutlass Spee Plymouth Acclaim, Pontiac Grand Prix and Grand Am, a Legacy, Toyota Camry, Volkswagon Passat, and Volvo 4 eeeRESEARCH 15 Full-Size Cars Some big American boats are Buick LeSabre, Chevrolet Caprice, Diplomat, Ford Crown Victoria, Mercury Grand Marquis, Oldsmobile Delta 88, and Pontiac Bonneville. Luxury Cars It's hard to find a crank-up window in one of these: BMW 850i, Buick Riviera, Chrysler Fifth Avenue, Nissan Maxima, Mazda 929, Oldsmobile 98, Saab 9000, and all models by Cadillac, Infiniti, Jaguar, Lexus, Lincoln, and Mercedes-Benz. Sporty Cars Acura Integra, Chevrolet Camaro and Corvette, Ford Mustang, Geo Storm, Honda Prelude, Mazda Miata and RX-7, Mercury Capri, Nissan 240SX, Plymouth Laser, Pontiac Firebird, Toyota Celica and MR2, and Volkswagon Cabriolet. Sport-Utility Vehicles These are the off-road types: Chevrolet Blazer, Ford Explorer, GMC Jimmy, Honda Passport, Isuzu Trooper and Rodeo, Jeep Cherokee and Wrangler, Mazda Navajo, Nissan Pathfinder, Oldsmobile Brevada, and Toyota Land Cruiser and 4Runner, Vans and Trucks These are self-classifying. You just need to decide if you want to go mini, mid-size, or full-size. What will you be using it for? Obviously, this is not a conclusive list of everything out there, but rather a random sampling to use as a convenient way of classifying used cars. Once you do decide on the type of car you want, the next logical step would be to consider which features are for you. OPTIONS TO CONSIDER Buying a used car is not like buying a new car, where you can walk onto a lot and pick a car with the options you want. Usually you have to take what you can get. But do decide on what major options you want, like standard transmission or automatic, 2-door or 4 door, air conditioning, etc. As far as the minor options, such as power windows, power steering, etc., don't get too hung up on having to buy a used car with these kinds of features. You'll only be making life very16 THE USED CAR BUYER'S MANUAL difficult for yourself when you start to shop. Just consider those minor options as window dressings. If the car happens to come with them, fine. But if it doesn't, don't let window dressings become a deciding factor in your purchase. If you do, you will be looking for a used car with just the "right" features for a long, long time. The following is a list of options lumped ieee in three main categories to help you narrow your focus even . Passenger cars For most passenger cars here are some things to consider: sedan, coupe, cabriolet, station wagon, hatchback, mini-van, 8-cylinder, 6- cylinder, 4-cylinder, diesel, 2-door, 4-door, automatic, standard; 4- speed or 5-speed, Sports cars For sports cars: coupe, convertible, hatch back, 8-cylinder, 6 cylinder, 4-cylinder, automatic, standard; 4-speed, or 5-speed. Trucks And for trucks: flat bed, long bed, short bed, van, utility, 1 ton, 3/4 ton, 1/2 ton, mini, mid-size, full-size, 4-wheel drive, 2-wheel drive, 8-cylinder, 6-cylinder, 4-cylinder, diesel, 2-door, 4-door, standard cab, extended cab, automatic, standard; 4-speed or 5-speed. This should help you decide on some of the basic features that you'll be faced with. It's your choice. Once you narrow it down, for example, to a 4-door passenger sedan with a 6-cylinder engine and automatic transmission, then you are ready to head for the library. BEST USED CAR BETS Whether or not you already know the type of car you want, I strongly recommend something from my picks list. Through my own exhaustive research, I have personally selected the following to be the most reliable used cars on today’s market. I took into consideration the three R's--reliability, resale value, and recall history. Please remember, how well a car has been cared for is what really decides how long it will last. Any car can end up a lemon if it was neglected for years. But leading you to cars with proven reliability will start you off on the right foot.RESEARCH 17 Small Cars Chevrolet Cavalier 1984-'94, Chevrolet Nova 1985-'88, Dodge Colt 1980-94, Geo Prizm 1989-94 (previously Nova), Honda Civic 1980-94, Mazda 323 1986-94, Nissan Sentra 1982-94, Plymouth Colt 1980-'94, Subaru Justy 1987-'94, Toyota Corolla 1980-'94, and Toyota Tercel 1984-'94. Mid-Size Cars Buick Century 1986-'94, Dodge Spirit 1989-'94 (except turbo- charged), Ford Taurus (V6) 1988-94, Honda Accord 1980-'94, Mazda Protege 1990-'94, Mazda 626 1980-'94, Mercury Sable 1988-94, Oldsmobile Cutlass 1980-94, Plymouth Acclaim 1989- ‘04, Saturn SL, SC, & SW 1991-'94, and Toyota Camry 1983- 'O4, Full-Size Cars Buick LeSabre (3.8 liter) 1985-94, Chevrolet Caprice 1985-'94, Ford Crown Victoria 1982-94, Mercury Grand Marquis 1983-94, Olgsmobile Eighty-Eight 1980-'94, and Pontiac Bonneville 1980- "04. Luxury Cars Acura Legend 1986-'94, Lincoln Mark VII 1984-'92, Lincoln Town Car 1981-'94, Nissan Maxima 1981-94, Toyota Cressida 1980- ‘92, and Volvo 240 1987-'93. Zippy Cars Acura Integra 1986-94, Honda Prelude 1980-94, Mazda Miata gee Nissan 200/240 SX 1983-'94, and Toyota Celica 1980- 94. Trucks/Passenger Vans/Sport Utility Dodge Ram 50 1983-93, Mazda Trucks 1980-94, Nissan Trucks 1980-94, Toyota Trucks 1980-'94, Dodge Caravan 1984-'94, Plymouth Voyager 1984-'94, Mazda MVP 1989-94, Toyota Previa rancor Nissan Pathfinder V6 1987-'04, and Toyota 4Runner There you have it: the best of the best. Sure, there are plenty of other reliable used cars on the market, and if you choose to look for something not on my list, you won't hurt my feelings. However, for a list of additional reliable used cars, see Appendix A: Directory of Reliable Used Cars.18 THE USED CAR BUYER'S MANUAL THE LIBRARY Whether you choose some models from my list or not, I still recommend a trip to the library to find out about a car's background, like the options that were offered for a particular model, recall history, etc. The best place to start reading up on passenger cars and trucks would be in the past April issues of Consumer Reports magazine. Each Apmil issue offers their annual automotive report. Consumer Guide's annual Used Car Book which rates cars up to ten years old, is also a highly reputable and recommended source for used car information. Conswmer Guide also produces two other publications that are worth a look: Car Comparisons and 50 Best New Cars. Both are published once a year. Another source of information is Kiplinger's Personal Finance Magazine, which used to be Changing Times. Each December issue offers new car information for the upcoming year. Armed with the above sources, you can research a car’s list price when new, its approximate current value, its reliability rating, how it performed in rigorous test drives, any frequent mechanical problems or recalls, rated fuel economy, options that were offered, its body style om photos), and when it was redesigned. you have a couple of hours to kill, go down to your local teary with plenty of loose change for photocopies and start digging. If you have narrowed the type of car you are researching down toa few models, you can save time and look them up oie ye However, if you're starting from ground zero, it may take a lit longer to leaf through and read up on the many different models. If your library is not the kind that stocks back issues of periodicals on the shelf, you'll have to request the issues you want from the reference desk. Once you focus on several autos from the model years in your price range, make photocopies of all relevent information. You'll want to keep these for later reference. One bit of advice—-itis to your advantage not to get hung up on one specific make and model. Leave yourself open to two or three different models that are similar. For example, if you really like the look of the Ford Taurus, consider the Mercury Sable. If you like Japanese and want a Toyota Camry, consider a Honda Accord or a Mazda 626 as well. You will benefit more when you start to shop because there will be more cars to choose from. More choices translates to more competition, which means a better deal is likely for you.RESEARCH 19 THE BLUE BOOK While you're still at the library, check out what the dealer's Blue Book price is on the auto(s) you seek. Most libraries stock a Blue Book or similar price guide, so it would be wise to check yours and make some photocopies while you're there. If your library doesn't have a current Blue Book, you can always call a bank to get a quote, The bank will consider you a potential customer for an auto loan and will be very accommodating. Edmunds Used Car Prices, which is published quarterly and goes back ten years, will most likely be at your library, too, but you would be better off picking one up at any book store for a few bucks to have as a convenient price guide as you shop around. To get the right quote from the Blue Book or Edmunds, you will need to know the following: * year, make, and model * engine size * standard or automatic + 2-door or 4-door * any special packages that were offered like sports or luxury pe etc. + 2-wheel drive or 4-wheel drive (if it was an option) + and mileage In the case of mileage, deductions are made for cars with high mileage, while value is added for those with low miles. Both price guides will quote a wholesale and retail price. The wholesale price is what you can expect to receive from a dealer for a trade-in, while the Tetail price is what you can expect to pay to a dealership or a private party. Through WH own experience, I find the prices in Kelly's Blue Book to be inflated. There is a big difference between what Kelly's quotes and what Edmunds Used Car Prices quotes for the exact same cars. The difference can be up to a thousand dollars or more depending on the model. Edmunds seems to be a little more realistic in their pricing. So when you go to buy a car and see that it's selling for five hundred below book, don't think you just found a deal. It may be five hundred above what is quoted in Edmunds. Kelly's Blue Book is great if you're selling a car, but not when you're buying. So my _ advice here is to exercise common sense. Use Edmunds price guide20 THE USED CAR BUYER'S MANUAL to your advantage when buying a used car and use Kelly's Blue Book to your advantage when selling or trading in. Although you won't be using the inflated prices from the Blue Book to your advantage when you buy, you'll likely hear sellers quoting from it, That's the perfect time to pull out your Edmunds Price guide and challenge them. Keep in mind, don't let the Blue Book or Edmunds fool you. They are only price guides and won't fluctuate with the laws of supply and demand. If there are more buyers than product, guess what? That's right, the price goes up. Reverse the scenario—more product and less buyers--and the price goes down. RECALL INFORMATION The National Highway Traffic Safety Administration, under the U.S. Department of Transportation, offers a hotline number you can call for up-to-date information on recalls for any model car or truck. The number is 800-424-9393 (for the hearing impaired, the TTY number is 800-424-9153). They need to know the year, make, and model and, at your request, will send you a printout on the car via fax or mail. Also, each auto manufacturer offers a computer research service making it easy to check out a specific car's recall history, You need the Vehicle Identification Number, which of course you don't have at this time, but when you do find a car you are considering, it is worth it to double check the recall history with the respective maker. I will remind you of this later on. RESALE VALUE Ever notice how some cars hold a better resale value while others seem to plummet? High resale value goes hand-in-hand with reliable cars. The market will tell you which cars are dependable, and when the market talks, you should listen. Don't shy away from used cars that seem pricey. In general, all the best rated cars will be commanding the best prices. It's like Darwin's theory of natural seeing anil of the fittest. And you should be pursuing them as well. If your budget won't allow the year model you had hoped for, consider getting one that's a year or two older. Remember, when it's your turn to sell, you will still have something highly desirableRESEARCH 21 for the next buyer. However, on models in which the resale value seems bargain priced, watch out! There’s usually a good reason for it, and you needn't find out the hard way. If you have decided on a model(s) the list of reliable cars. that I have previously researched in Appendix A, you may fast forward to the Selecting a Mechanic sectionon page 23. Should you choose not to take my advice on one of those reliable cars I have selected, please read the following two sections. THE PHONE BOOK Go to the yellow pages and look up Auto Repair. You need to call some repair shops to get a mechanic's opinion. Don't call a dealership service shop or even a private shop that specializes in the kind of car you're after. They may give you a biased opinion, tegardless of the truth. The kind of shop you want to call is one that’s been around a few years and works on a variety of domestic and foreign cars. This way you know you're getting the opinion of someone who sees a broad range of vehicles day in and day out. When you call, ask fora mechanic and give the year, make, and model car you're thinking of buying. Ask if there are any bum years put out by the maker that you should avoid. Also ask if there was a certain engine size or feature that you should avoid in these models. You may hear responses like "the turbo-charged 4-cylinder engines in the '82 through ‘86 models are junk, but the 6-cylinder with fuel injection offered those same years seem to be holding out." If you're researching for an import, be it Japanese, German, or whatever, make sure you ask about parts availability. If you live in or around a big city, chances are you'll be okay, but if you live in a small town out in the heartland, you could have problems getting parts. And since most of us don't have a week to wait for a part to come in while our car is down, this is a major consideration. Finally, ask the mechanic for his personal opinion of these particular models. He may highly recommend them, or he may point you toward a different model altogether. Remember, he is up to his elbows in engine repair all day and sees it all, so listen to what he has to say. To get a well-rounded opinion, call at least three different repair shops. : Ae : Be careful of a mechanic who immediately tries to sell you something. Sometimes they buy, repair, and sell cars on the side. When you call to get their opinion and they just happen to have that particular model for sale, chances are they have several different cars22 THE USED CAR BUYER'S MANUAL as well and your honest mechanic may suddenly turn into Dishonest John's Used Cars. Now, the 4-cylinder turbo-charged engine becomes a spunky engine that's great on gas. Yet, on the other hand, he could be an honest mechanic who avoids the lemons and concentrates on fixing and selling the less problematic cars. Whatever the case may be, just thank him for the tip and mention that you will keep him in mind. You're not ready to make your move yet. The key to making a good auto investment is completing your research. WORD OF MOUTH It may sound silly, but asking around is a good way to get an honest opinion straight from the horse's mouth. People aren't afraid to tell you their likes or dislikes about a car they own or have owned. So, ask for an honest opinion from any family, friends, or neighbors who drive the type of cars you're considering. And now that you're familiar with the cars you seek, you should be able to spot them around town. So, in your daily travels, look for those cars that are on your list and, when the opportunity arises, whether it's at a gas station or the mall parking lot, just come out and ask the owner about his or her car. You have your choice of approaches. You could ask "I'm thinking about buying one of those new. Have you had any problems with yours?" Or you could just try the honest approach: “I'm looking into getting one of those used. Have you had any problems with yours?" Make sure you find out the year, engine size, and how long the owner's had itso you can take all that into account. Obviously, the opinion of someone who has owned a car a few years holds more credit than the opinion of someone who's had the same car just a few months. If the person has owned it since new or for a number of years, another good question to ask is, “Would you buy another one?" ‘The thing about the honest approach is that the owner may have a bucket of problems and could see your interest as an opportunity to sell. Any car, regardless of how well it's rated, can end up being a lemon, He, or the previous owner(s), may not have taken care of the car and it's starting to show its neglect. So be wary of anyone suddenly trying to sell you their "great car." If it's so great, then why are they trying to unload it so quick? NEVER BE IN A HURRY TO BUY A USED CAR!RESEARCH 23 SELECTING A MECHANIC If you don't already have a mechanic you like or trust and don't have any recommendations from your friends or family, this is what you do. Go through the yellow pages and look under Auto Repair and find several independent shops who work on the type of cars you have targeted. Call each and tell them you are looking to buy a used car and are wondering what they would charge to check it over and compression test it. They should charge no more than an hour for labor (currently around $50). Also ask how much notice they need to set an appointment once you locate a car. You'd be better off with a mechanic who says he can take it within a day. Once you find a car you like, you don't want to be waiting more than a day to get it inspected or you could lose the sale to someone else, The way to foolproof this would be to have two or three mechanics to call on. If one is too busy, you can call the next one on your list. SCAN THE ADS You need to start scanning the ads for used car prices long before you're ready to buy. This is the most accurate way to see what the market is commanding for the year, make, and model you've been researching. This will also help place yourself when figuring how new a car you can afford. Keep in mind, I am not talking about used car dealership ads. Forget about those. I'm talking about private party ads by people like you and me who are selling a car on their own. The best place to start looking is in the classifieds in your daily newspaper. Weekly “penny saving” flyers that come in the mail or can be found at the grocery store will also advertise used cars, Have a look around at your local convenience store and grocery store for special auto seller publications. Many are photo ads so you can see a picture of the car that's for sale. Other places worth checking are public bulletin boards posted around g: stores, hardware stores, post offices, or wherever there's heavy foot traffic. People will post "For Sale” ads, making this a great way to find a deal. Before I have you rummaging through the auto ads, let's brush up on the typical classified abbreviations used to save space. | know most of this is justcommon sense, but I still want to run through it24 THE USED CAR BUYER'S MANUAL quickly so there are no questions later. Here's how some words may appear: air conditioning - AC, air, air cond anti-lock brakes - ABS, alb, anti lk brks automatic transmission - AT or auto Cassette stereo - cass str chrome - chrm convertible - conv coupe - cpe custom - cust eight-cylinder engine - 8cyl, V8 extended cab - extd cab, extra cab, x-cab, cab + four-cylinder engine - 4cyl four door - 4dr four wheel drive - 4wd, FWD: fuel injection - FI hatchback - HB, hatch longbed - LB manual transmission - MT, man, manual miles per n - MPG or best offer - OBO overdrive - OD package - pkg paint - pnt pickup truck - PU power brakes - PB, pwr brks power door locks - PL, PDL, pwr dr ks power steering - PS, pwr st power windows - PW, pwr wds sedan - sdn shortbed - SB six-cylinder engine - 6cyl, V6, straight 6 stant transmission - ST, std, 4-speed, 5-spd station wagon - SW, st wgn, wagon sunroof - snrf, sun, or moonroof - mnrf tilt steering wheel - tilt two door - 2dr two wheel drive - 2wd | wheels - whis 65,000 miles - 65mi, 65m, 65k eeRESEARCH 25 , I think you get the picture, but while we're at it I would like to offer some definitions to common classified terminology to help clear the air. Asking - Whenever you see the word "asking" preceding the price, i.e. "asking $4,500," it translates to: the seller is hoping to get close to $4,500, but is open to lower offers. "Asking" is a green light to negotiating. Cabriolet - Just a fancy French word for convertible. Cherry Condition or Cherry - see Mint. Clean - It's supposed to mean that the body is dentless and rustless and there is no oil leakage from the engine or transmission, But for some, clean just means they went to the car wash before listing it for sale. Coupe - a two-door hard-top auto with a trunk. Custom or Customized - whenever you see this word it means not original. It could be bad or it could be good, depending on the item itself. Most of us wouldn't mind a customized stereo, but a custom sunroof can leak and hurt the value of a car. Mint Condition or Mint - means that the car looks just like it did when it rolled off the assembly line. Unfortunately, this is rarely the case. Factory - you may see this from time to time. A "factory sunroof” or "factory rims" means the car came that way from the factory. Factory parts are generally more desirable than custom, thereby making the auto more valuable. Firm - means the price stated is non-negotiable. However, I have negotiated firm prices many times. Excellent Condition - almost, but not quite mint. Good Condition - not excellent. Okay Condition or Looks Okay - translates to used, abused, bruised, beat-up, and thrashed. Don't even waste your time. Needs TLC - supposed to mean needs Tender Loving Care, but what it really means is needs Time, Labor, and Cash. Avoid like the plague. Negotiable - means that the owner is willing to go lower than the price stated. Original - you see this word a lot in ads for older vehicles, A car that's "all original" or in “original condition” has all the original parts from the engine down to the doormats. Anything that has been removed, lost, or broken should have been replaced with an original part.26 THE USED CAR BUYER'S MANUAL Original Owner or One Owner - means that the car has had the same owner since new. These are the ones to look for. One owner means less chance for abuse. Runs Excellent - self-explanatory. Runs Good - doesn't run excellent. Runs - basically means the engine runs, but is on its lastleg. If you see an ad that says "runs," run away from it. Sedan -a 2- or 4-door hard-top auto with a trunk. Keep in mind, the prices you see advertised are padded. It doesn't mean the seller will actually get that. So consider this: If you have $2,000 to buy a new car and you see many ‘86s of the model you want selling in the $2,200 to $2,500 range, then you are right in the ball park. You can always count on sellers increasing the price of their autos hundreds above what they would actually take. We'll discuss this in detail in the negotiation chapter. In the meantime, don't let over-priced cars in a certain year lead you to believe that you can't afford one. For those of us who live in a small town where there isn't much ofa used car market, all this can be difficult to do. But if there's a larger city an hour or two away, it would be a good idea to check out the market there, You can do this without driving there if the city's paper and auto publications are available in your town. When it comes time to go look at cars, it could be well worth the one-or two-hour trip to find a decent car at a reasonable price. If you don't already have one, this would be a good time to get a city street map to make it easier to find your way around. FINANCING ‘The best way to buy acaris with a lump-sum of cash. However, if you don't have the money saved up in a nest or have a rich uncle to schmooze, you'll be at the bank's mercy and must borrow--like the rest of us. If such is the case, financing becomes a big part of your research. Find out up front how much car you can afford and get pre-approved with a finance company that offers a competitive Annual Percentage Rate (APR), This way you will know how much the loan will cost you, the amount of your monthly payment, and the length of term BEFORE you go used car shopping. Finding an auto loan that fits you is like fading acar that fits you; you have to shop around. Some loan companies offer better deals than others. | | 28RESEARCH 27 The best way to finance your car is through a home equity loan. If you're a homeowner, check with your bank to see if you have enough equity to finance the amount you need for a car. The advantage in doing this allows you to deduct the interest payments at the end of the year, whereas in a conventional auto loan you can not. If you belong to an employee credit union, this would also be an excellent source to check for low rates. If you don't own a home or belong to a credit union, find the best rate you can through the commercial banks and get yourself set up with one. If later you decide to go the dealership route, you can check what rates the dealership has to offer to see if they can beat the company you're with, Some do offer competitive rates. Most banks and finance companies like to see 20% down (depending on the year of the car) on a used car loan. If you can come up with more, it is to your advantage. I recommend putting down as much as you can and financing as little as possible. It will mean lower monthly payments or a shorter term and, most importantly, less interest to pay in the long run. If you do decide to finance through a dealership, watch out for loans boasting no money down and/or no payments for 90 days, etc. They sound tempting, but you'll only be burying yourself deeper into debt. Dealers will get the monthly payment really low for you, but you may end up paying interest on your interest or adding an extra year of payments to your loan. This translates to more money in the dealer's and finance company's pockets and less in ae More information on dealership financing is covered in the ealing With Dealers chapter. AUTO INSURANCE Insurance is expensive these days, thanks to frauds and ambulance- chasing lawyers convincing accident victims to sue for outrageous sums for their "pain and suffering." And with a $30,000 car not an uncommon thing these days, the rising cost of autos has also contributed to the steep premiums we all pay. If you are a first-time car buyer or making a drastic change from your previous auto, like going from a pickup truck to a sports car, you better get an estimate on insurance BEFORE you buy. Most of us do not like surprises and you may be surprised, unpleasantly, after you purchase that ‘Vette and find yourself short when you go to insure it.28 THE USED CAR BUYER'S MANUAL The best place to start checking for good rates would be through your homeowner's insurance policy--if you're a homeowner, that is, If not, find out which company your parents are with. Most agencies will offer family discounts on auto surance policies. Otherwise, the only other advice I can give here is to shop around. Surf the yellow pages and dial until your finger goes numb. Not all insurance agencies are created equal, as you will find when you receive a wide range of quotes. Go with the lowest from a Teputable company. THE EIGHT GOLDEN RULES OF RESEARCH 1) Focus on at least two models that suit your needs 2) Read up on them at the library, finding out as much as possible 3) Get the book price quotes from the Blue Book and Edmunds or a similar price guide 4) Touch base with a couple of mechanics for future inspections 5) Study the classified ads and learn the market on the cars you seek 6) Get your finances in order 7) Know what insurance will cost 8) Never be in a hurry to buy a used carCHAPTER 2: THE SEARCH ARE YOU READY? Have you narrowed your focus down to two or three particular models? Do you know which features you want? Do you know what the wholesale and retail prices are in a Blue Book and Edmunds? Did you read every auto classified publication you could get hands on to learn what the going market is on the year Is you desire? Did you get yourself lined up with at least one reliable mechanic? Is your financing all set to go at a moment's notice? Did you call and get some quotes from several insurance agents? Have you read my book all the way through, made notes accordingly, and understood clearly what is being presented? If you ie re research is complete. You are now ready to start the search, Because you've already been scanning the ads, you know where to look for possible leads. By this time you should already know on which days weekly publications come out. Make a point to get the publication as soon as it's published. If a particular auto seller comes out every Friday, you don't want to be in town picking up a copy on Thursday. The ads are already a week old, and you will30 THE USED CAR BUYER'S MANUAL find that many cars have already sold. Quite often people sell cars well below market value because they are in dire need for some quick cash or they don't realize their car's full worth. Remember, the dealers read the same ads and are constantly hunting fora kill, You are not hunting fora kill, but you are hunting for a reasonable deal—-and sometimes even those go quickly. INTERPRETING AN AD Let's say you are looking for a Honda Accord and you come across a classified ad which reads: '89 Honda Accord LX - 4 dr, Sspd, low mi, looks and runs like new $6,800 call 555-5555 Now, because you have done your research, you know the LX is the luxury edition with all the goodies. What you don't know is how many miles the car has or it's real condition. Even though the ad says "low miles," your idea of low miles for an "89 might not be the same as that of the seller's. "Looks and runs like new" also sounds good, but again, your idea of something that looks and runs like new may not coincide with the seller's. I once looked at a car which supposedly “looked like new" that had been hit in the rear fender. When I questioned the seller about his misleading ad, this was his reply: "Except for the dent, everything looks like new. Just look at that interior, not even a crack in the dash!" The price of $6,800 is reasonable because you know what the fair market value of an "89 Accord is, thanks to your research. This ad is worth a phone call and that's something that takes only two seconds to decide, QUESTIONS TO ASK When you call, greet the owner politely and always reread the ad back to him. "I'm calling about the Accord. That's an'89 LX?..." Get into the habit of doing this just to double check that there hasn't been a misprint on the paper's behalf. You wouldn't want to drive an hour to look at what you thought was going to be an '89 Accord and have it tun out to be a ‘79.THE SEARCH 31 "How many miles are on it?" would be the next question to ask. You can figure about 12,000 to 15,000 miles year is average. The '89, being six years old, should have less than 72,000 miles if the ad said low miles. Always ask this question whether the ad says anything about mileage or not. Mileage is a key indicator of how much wear is on the engine. If the car's been properly maintained, we can assume the less miles on it, the more life it has left. But if an engine has been rebuilt or replaced, then the mileage doesn't apply. Keep in mind, any car with a new or rebuilt engine that isn't Pere pres ve Oe) be eis Sea ine ite xs a poor design to begin with, ‘ou didn't complete your research. In either case, stay jai er costly repairs are just around the comer. "How long have you owned it?" A very important question. If the person has owned it since new, then you are speaking to the original owner. Originally owned cars are highly desired over multi cars. Why? A multiple owner-car is more likely to have neglected by an uncaring owner at some point in its life. How would you know for sure if the oil was changed on schedule or if the engine was properly tuned? With multiple owners, you'll never know for sure about the car's past, but with an original owner, you'll be able to find out about the whole life of the car. That's not to say that all originally owned cars have been well cared for, but if they weren't, you'll know as soon as you see the car. Years of neglect will be staring you in the face. In all the single-owner cars 1 have come across I can't recall one that was in bad shape. I guess original owners are just a special breed. They buy a brand new car with the intention of keeping it for a long time, so they take good care of it. A one-owner car is what you want. It's what the dealers want. It's what everybody wants. If the owner has not owned it since new, ask if he bought it from the original owner. He may be the second or even third owner and know the previous owner(s) and what they were like. These are the kinds of things you like to hear when calling about used cars. If it turns out that the owner has only had the car for a short period and doesn't know how many previous owners there were, then we are looking at a car blind. You can still buy a decent car blindly, you just have to be extra careful about it. A car that has changed a lot of hands may have something wrong with it that is expensive to fix. Which leads us to our next question.32 THE USED CAR BUYER'S MANUAL "Why are you selling it?" 7 Aas assume that people are selling cars because there's something wrong with them. | know this seems like a paranoid way of thi ings Du gant you io Caink this way to protect yourself. Many people will own a car until the engine starts leaking or the clutch teu cee ee tires wear out or a combination of problems start adding up. Instead of fixing the problem(s), they decide to buy a new car and let the next owner deal with it. Why put money into their car if they are about to sell it anyway? But in order to get the best price they will try to hide the car's faults and THEY WILL LIE TO YOU ABOUT THEIR CAR'S CONDITION. So don't believe what they say. Believe what your common sense and your mechanic say. People can always lie about why they're selling their car, but more times than not you'll be able to detect if they're being honest with you. This is a question you'll ask twice: once over the phone and once when you look at the car. Notice if the second response differs from the first. If possible, try and ask a different person the second time to see if his or her answers coincide. For example, ask the wife over the phone the first time, and the husband in person the second time, etc. People have all kinds of reasons to sell a car. The ones we like to hear are, "I'm selling it because I just bought a new car." Rather than trade in their used model to a dealer, many owners choose to sell their cars privately because they can get more money on their own. Remember, dealers are going to mark up a trade-in to make a profit, so they can only offer so much, which is well below market value. The new-car excuse is the one you'll most likely hear from an original owner. Another good reason which can also give you some eee muscle is if someone is moving. These people a be desperat especially if their phones aren't ringing. Bo end for "moving, must sell" ads. Sometimes people ne ae a tight money situation and, for one reason or another, they need to ince their car for cash. They are having a baby or they got laid off. Whatever the reason, as long as it's justified, you can rest easy when it's a person problem and not a car problem. If the seller says he's bought something else, which is also used, it may be just his personal taste, but it could also be because the car has been nothing but a money pit and he needs to unload it. Other excuses to be nervous about are ones like "I don't need it anymore" or "I want to upgrade.” Any excuse with this type of tone is a good indication of a car that people are unhappy with, so be wary.