Sunday, January 8, 2012

Tips on Buying a Used Car


Buying a used car has important advantages. You can purchase for much lower than it would have cost you when it was new, as most of the depreciation occurs in the first three years of a vehicle’s life. In fact, the value drops significantly as soon as the new car leaves the dealership. People who buy a new car are actually paying thousands of dollars extra for the brief pleasure of a ‘new car scent’. However, there are risks in buying used, especially if you’re buying from a private seller. So be sure to investigate before you do the deal.
Determine the car’s value
To help you determine the value of a used car, you can check the Canadian Red Book, available at any local library. But this is only a guideline. Look for other cars of the same make, model and year online to see what prices are being asked for them.
Ask plenty of questions
Be sure to ask plenty of questions when buying a used car. This is especially so if you are planning to buy privately rather than from a licensed car dealer or salesperson. Your questions should include:
● Are you the car’s original owner (if buying privately)?
● If not, how many people have owned the car?
● Why do you wish to sell the car (if buying privately)?
● What condition is the car in? How about the body and upholstery?
● Has the car ever had repairs costing more than $1,000?
● Has the car ever been involved in an accident?
● Do you have service records?
● Was the car ever used as a taxi, police car, a lease or a rental?
● Is the odometer’s mileage count accurate?
Always inspect a vehicle in daylight
Make sure to inspect the car in the light. Look for extreme wear of the seats, upholstery, brake and accelerator pedals. Also, look for anything new, since this may indicate the car has had a lot of use. Carefully check the exterior, and watch for waves on the body as that may mean bodywork or that the car has been involved in an accident.
Take the car for a road test, driving it at different speeds and on different road conditions. The road test will help you assess the brakes, steering, shock absorbers and front-end alignment.
Check the car's registration and history
Check whether the car you are buying is registered in the seller’s name. If it isn't, be sure to ask why. You don’t want to purchase a car that has been stolen or rebuilt. To check the car’s history, you will require its Vehicle Identification Number (VIN), make, model and year; if the seller won't provide this to you, you should walk away.
Ask for the Used Vehicle Information Package
Under Ontario law, private sellers of most vehicles have to provide buyers with a Used Vehicle Information Package. This package contains.
● Description of vehicle
● Ontario vehicle registration history
● Odometer information
● Outstanding debts (or liens) on the vehicle
● Wholesale and retail values for the vehicle's model and year, if available
● Retail sales tax requirements
● Bill of sale
Find out about parts availability.
What is the price of parts such as brakes or exhaust that often have to be replaced? If there are generic brands available from auto parts stores, it may help lower your future repair bills. Be cautious when considering cars that were expensive when new, especially if they’re selling at a large discount as used vehicles: their parts could be extremely costly to replace.
Calculate the insurance rates
Find out how much it will cost to insure the car. The rates depend, in part, on the car itself. As with the cost of parts, you want to discover if this cost is a budget-breaker before you buy.
Ask your mechanic to check the car
Before you agree to purchase the car, obtain an objective evaluation from a mechanic whom you trust – rather than someone whom the seller suggests.
For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com 

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