The Art's Automotive guide to buying a used car

Buying a used car is often a stressful process that raises many questions --

* Which makes and models match my preferences?
* Which makes and models will hold up well?
* How can I tell if a car was well maintained and if it's in good condition?
* How can I tell if a car is fairly priced?

It can also be very time consuming. Before you can start driving your new used car you'll need to --

* Research the makes and models you'd like.
* Call sellers for interviews and to set up a time to see the car.
* Arrange to have the car inspected.
* Negotiate the price.
* Get a smog inspection.
* Register the car at the DMV.
* Call your insurance company.

Buying a used car can be a pain. However, it's a lot less painful than shelling out $25K+ for a new car, assuming, of course, you have that much liquid cash to spare. If not, you'll have to add in another $5100 for interest for a total investment of $31K, not including the mandatory full coverage insurance. On the other hand, if you buy a 4 year old used car someone's just finished paying $31K for, you're likely to pay only $10,000 and still be able to put 10 years / 150,000 miles on it. This is why so many people put up with the hassle of buying a used car.

Here's the method we suggest for finding you're new-to-you ride

1. Choose at least two model generations you are willing to buy (e.g. 1993-1997 Toyota Corolla and 1992-1995 Honda Civic). If you have your heart set on only one model, you may have more trouble finding one in good shape at a reasonable price. If you choose 2 or more models to look for, you will have a larger pool to choose from and are more likely to find a good deal. Pick your models carefully, with used cars, there are no "backsies". If you find out you don't have enough leg room after you've bought the car, you'll have to learn to like being cramped, or go through the hassle of selling the car and finding another.

2. Decide whether you want to buy from a used car dealer or a private party.

Used car dealers make their living buying cars and selling them for more than they paid for them. They have overhead in the form of rent, inventory, and pre-sale repairs. You will almost always pay more for a car bought from a used car dealer than you you would buying the same car from a private party. Why would you want to go to a used car dealer? Convenience. There are lots of cars to peruse in one location. Why wouldn't you want to go to a dealer? Well, many of them use high pressure sales techniques and some of them try to sell cars in very poor condition by masking their defects.

Private party sellers are just as varied as the general population. Some people are nice. Some people are mean. Some people are quirky. Some people are frightening. If you choose to buy your used car from a private party, you'll have a chance to pay less and meet some of your fellow citizens.

3. Find people selling the type of car you want in the free classified papers, Craig's list, and in the on-line classifieds of the your local papers. Write down a list of questions for sellers such as:

* Does the car have a salvaged title (don't buy salvaged cars, they were totaled for a good reason!)?
* Are there any dents or cosmetic problems?
* Are there any mechanical problems you know about?
* Do you have service records?
* Have you passed a smog check in the last 2 months?
* If I am interested in the car, may I, or will you, bring the car to my mechanic for an inspection.
* Add any questions that are important to you and ask about any information missing from the ad.
* If it all sounds good, set up a time and get an address (or agree to meet at a public place).

After you've written your list, copy or print it several times, and use it as a guide for your phone calls. Write the name, number, car, and ad source on the top of the sheet and write the answers to the questions under the questions. After you've made 20 calls or so, everything will start to blur together and you won't be able to remember all the details. You'll need your notes to sort out who said what. If you've made plans to see the car, you might want to print your MapQuest directions and staple it to the back of your notes, especially if you are going to see several cars.

4. Do a basic inspection yourself, before bringing the car to your mechanic. Here's what to check:

* Check for signs of previous body work such as
-- a change in paint color or texture from panel to panel
-- overspray in the wheel wells.
-- most newer cars have VIN (a 17 digit identifying number) tags on most body parts. Check that they are all there and that they match (you can use the last 3 digits).
-- paint on the edges of weather stripping from poor masking.
-- sight down the side of the car and look for ripples.

* Check for blue smoke from the tail pipe. Some white steam is normal, but thick blue / gray smoke with an acrid smell is a sign the engine is past it's prime. Checking for smoke when the car is started with a cold engine is the best time.

* Check all of the fluid levels. If the seller won't bother to top them before a buyer comes to look at the car, what must their normal habits be? Please note that the car must be on level ground (the side of the street usually isn't) and you should be familiar with how to properly check a given fluid so you don't jump to any erroneous conclusions. BTW, never open a radiator when hot, you could be badly burned.

* Remove the oil cap and check the color of the metal on the inside of the engine. It should be silver or tan. Dark brown or black is a sign the motor oil has been neglected. Be sure to put the oil cap back on!!

* If the car you are looking at is an automatic, check the transmission fluid condition by pulling the dipstick and dabbing some of the fluid onto a white piece of paper. The fluid should be a bright red / pink color. Purple is still OK too. But if the fluid is dark brown or black, the fluid has been neglected. Be sure to put the dipstick back!!

* Drive the car and make notes on anything that seems odd, so you can relay that information to your mechanic when you have the car checked out.

5. Once you know you like the car, and it's passed your initial inspection, and the price seems like it's somewhere near right, it's time to bring the car in for inspection. Many buyers skip this step, and I've seen it lead to disaster. We've had customers buy literally worthless cars without inspection. At Art's, you will need to make an appointment in advance to have the car checked out, and we realize that this can be inconvenient. Sorry. A couple suggestions -- You can make an appointment on a day you will be looking at a car, and cancel it if it doesn't pan out. Please call to let us know though. You can also call in on the day you are looking at cars and see if we've had any cancellations (10:00 AM is a good time to do this. If a customer has not come in by 10:00, we figure they are not coming and give their spot to someone else).

6. Check the seller's maintenance and repair records for gaps in service and looming service events. If you bring the records with you, we can help you with this. If this is not possible, we can give you a list of service items to find out if the seller has done.

7. If we inspect the car and you are satisfied with the results of the inspection and you and the seller can agree on a price, you're almost done. Get a smog check before trading your money for the pink slip. In California, the seller is responsible for selling a car that will pass the smog check, not necessarily for paying for or procuring the smog check (although some do to make their car more attractive to potential buyers). However, if the car does not pass the smog check after you've paid for the car, and the seller refuses to take responsibility for the repairs necessary to make the car pass smog, you'd have to take the seller to small claims court to collect, and even then you might have trouble collecting on you're judgment. It's much easier to deal with this before the money has changed hands.

8. You have 10 days to register the car with DMV after purchase.

9. Insurance will normally cover you (liability only) for a short "between cars" period, but why take chances, call them ASAP and add your new car.

10. Congratulations, you're done! Don't forget about any maintenance or repair issues brought to light during the inspection though.

Useful links

http://www.kbb.com

The Kelly Blue Book site. Be sure to use the private party value if you are buying from a private party and the retail value if you are buying from a dealer. Read the condition descriptions carefully. It's also a good idea to check the average price in local classified ads too.

Feel free to e-mail questions about cars you are considering. You can send a message to us all with this link.

Q&A

Q: How can I tell if a car has a salvaged title?
A: It will say salvaged on the pink slip in California.

Q: Where can I find the body VIN tags?
A: On the driver's side of the dashboard, near where the dash meets the windshield. On the driver's door pillar. On all four doors, usually near the strikers. On the inside of the front fenders, the area visible with the hood up. On the underside of the hood. On the front transverse crossmember (the metal part that runs above/parallel to the radiator). On the firewall. On the top of the rear bumper (usually visible with the trunk open). On the underside of the trunk lid. And maybe elsewhere.

Q: I can't find all of the VIN tags, does that mean the car's been wrecked?
A: Maybe, maybe not. Not all cars have all of the above mentioned VIN tags. It seems like the body part tags became more common around 1996, earlier cars may have only the dash, firewall, and drivers door or door pillar tag. The tags should be fairly symmetrical though. For instance, if the right side door have tags and the left don't, that would be suspicious.

Q: What's wrong with buying a salvaged car?
A: A car is salvaged car is a car that an insurance company has assessed as un-fixable for less than the value of the car. When a claim is filed, the insurance company would like to pay as little as possible. Of course they would rather fix the car than pay the insured the full value of the car. If the insurance company totals the car, it's with good reason. Sometimes used car brokers will buy salvaged car and repair them, cutting as many corners as possible in order to make a profit. You don't want own a car like this as the duct tape and bailing wire repairs start to fail.

Q: But the seller says that the car was totaled because the seats were stolen. The list price on the seats is over $6000. That's why the car was totaled. When the seller bought it back from the insurance company, he just bought a set of used seats from a wrecking yard for $600, and now the car is fine again.
A: This is a very common story, we hear it or a variation once every couple months. Insurance companies have heard of wrecking yards. In fact, most insurance policy contracts specify that the insurance company can use used part to repair the car in the event of a claim. If the insurance company totals a car, there's a very good chance they knew what they were doing.