Car Buying Guide – New vs. Used

This time of year, the car sales pitches hit high tide.  Labor Day sales and “summer close out sales ”
start to pop up at every dealership.  They are trying to sell
off last years models before the new ones take over popularity, and
they are  trying to target those who need cars for the new
school year- such as college kids or new drivers.  Regardless
of what you are buying or what you need, here are some tips to
consider. 

New vs. Used:
There are good deals to be made on new cars because in August,
many new car models come out.  The old ones that have not been
sold need to be moved.  But there are also always deals to be
made on used cars because that is the type of merchandise dealers
do not want to keep around too long.  So the determination
must be made as to what is the best deal.  Here are a few
factors that should play a role in the decision:

• New cars come with a manufacturer’s bumper to bumper
  warranty.  Most used cars are sold “as-is” meaning you take
  the risk of there being problems with the car.  While extended
  warranties on used cars are an option, they are often not worth the
  expense as there are always coverage issues.  
• New cars don’t have anybody’s bad history.  You are the
  first owner and those first miles are all yours.  With a used
  car, there is a history that you may not know about.  More
  research is required.
• Negotiating a price on a new car may be more tedious.  The
  dealers all have a certain amount of room to work with, but there
  are bottom lines to the prices.  With used cars, there is much
  more leeway to negotiate a better price.  
• Overall, you are really combating
  with Price v. Quality.  You pay more for a new car, but you
  also have a better quality product.
   

If You Buy New:
If you are a new car buyer, here are some tips that you should be
aware of before you buy:

• Length and duration of warranty.  The warranty of
  a new car is its best feature.  The manufacturer warrants a
  vehicle free from defect, and will repair or replace any defective
  part free of charge.  But for how long?  Many cars are
  warranted for 3 years or 36,000 miles – whichever comes
  first.  A longer warranty than that can be very useful . 
  So be mindful of how much you drive. 
• Gas Mileage and the Environment:  Gas prices have
  soared over the last few years  In the summertime, they are
  typically the highest.  This has brought upon more popularity
  to electric vehicles and hybrids.  If you are in a pure gas
  vehicle, mileage per gallon is critical.  Surely you do not
  want to find yourself at the pump every week.  
• History of Problems with that Vehicle:  Some
  vehicles have a bad history.  Certain types of makes and
  models have issues that continue to pop up on them that
  manufacturers fail to correct.  Spend some time on the
  internet looking for chat rooms, complaint boards (see the Better
  Business Bureau), and even pending class action lawsuits. 
  This research may tell you about something in a car, such as a
  recurring problem, that may steer you away from getting that
  vehicle.
• Reputation for Service:  Often a new car will
  need some sort of service on it.  All cars need to be
  maintained to some degree.  The dealership and manufacturer
  team together to provide you the service you need on the car. 
  Poor service quality can do more than just sour your feelings
  toward the repair facility, it can effect your entire ownership
  experience.  Pleasant, efficient and effective service makes
  the new car buying experience better.

If You Buy Used:
If you are in the used car market, here are some important tips
you should know:

• Ask Questions:  Make the sales person tell you as
  much as they can about the history of the car.  Ask him or her
  how they got that answer.  Did they get this car as a
  trade-in, or was it purchased at an
  auction?    This can factor into how much they
  know.  
• Order a Carfax:  Carfax.com is a website that
  maintains a database of vehicle histories.  You can plug in
  the VIN of the vehicle and get a detailed history of the
  vehicle.  It can tell you if the vehicle was previously a
  rent-a-car, a lemon, or in an accident.  You can even see how
  the mileage increments increased.  Many dealers will offer you
  a carfax report.  If they do not, ask for one.  If they
  refuse, a red flag should go up in your mind.  Write the VIN
  down, go home and get your own report.  
• Get the Repair History:  This is not always
  possible, but if your used car is being sold by a manufacture
  authorized dealer of that type of car (i.e. you are buying a used
  Chevy from a Chevy dealer) then you can ask for a “warranty history
  report.”  The dealer should be able to show you all the
  repairs made to the vehicle under warranty.  
• Note the Mileage:  It goes without saying that
  the older a car gets, the more apt it is to break down.  Cars
  put on an average of just under 15,000 miles per hear.  Note
  the year of the care and the number of miles on it.  If the
  car averages more than 15,000 miles per year, you are getting a
  vehicle that has been used top greater excess than most. 
• Bring a Mechanic:   We often hear the story of
  how the car drove just fine at the test drive, and then within a
  few days, the car breaks down.  It’s just amazing how the car
  will perform just perfectly when it needs to be bought, then breaks
  down once it is purchased.  Like a puppy that wants to get
  picked out of the litter.  Covert or lurking problems can be
  detected by the properly trained eye.  Bring a mechanic along
  if you know one. 
   
  If your new car purchase turns out to be a lemon, or the used car
  you purchase turns out to be something that was not as represented
  to you, Contact Us for a free case
  review.