1. DO YOUR RESEARCH, DECIDE ON THE CAR OR CARS YOU WANT. Too many folks scan the classifieds with only a vague idea of what they want, focusing primarily on the price. This creates problems when it's time to make a deal; furiously researching a vehicle while the clock is ticking induces a sense of panic, and prevents you from making a calm, cool decision. It is also wise to have more than one make or model to choose from, as it increases the pool from which to choose.
2. SHOP THE CAR, NOT THE PRICE. It seems to be the norm that folks decide on the vehicle they want, then scan the classifieds for the cheapest vehicle of that type. In typical American fashion, value is equated with price. This equation is wrong, here's why: with the advent of the Internet, it is too easy to valuate a vehicle; the days of grandma offing her classic for a steal are gone. It is also the case that a person who maintains his or her car properly is very aware of the fact, therefore wants maximum return on the sale. So, when a car is priced on the cheap end of the spectrum, it is usually priced so for a reason. In other words, you should expect to get what you pay for.
3. SHOP THE OWNER, NOT THE CAR. Shopping for a car should be thought of as a filtering process. You should expect to spend 95% of your time making phone calls, and 5% of your time test-driving cars. Of the cars you test-drive, you should not assume that you will drive one of them home. This may sound time-consuming, but it takes far more time to get to a car and test-drive it than it does to screen the prospect on the phone. So, we say shop the owner, because you can glean a lot of information about the person you are talking to, and if you can form an opinion about the person, you can also form an opinion about the car. So have your questions ready, but pay extra attention to the person's personality. If someone gives you sensible answers to your questions, seems patient and mild-mannered, in other words treats you well, it's a strong indicator that they treat their car well, and that they will work with you to ensure the process goes smoothly. So the two parts to this formula are 1. Profile The Owner, and 2. Ask The Right Questions.
Profile points: Are they selling multiple cars? Brokers (or worse, shade-tree brokers) are a bad bet, which we'll elaborate on later. Our opinion is you should move to the next prospect if they appear to be a broker, unless you specifically intended to call one. Are they selling the car for someone else? All too often you'll hear the 'it's my cousin's car, but he had to leave the country, so I'm selling it for him' (or something like that) routine. This is an excuse to not answer questions truthfully or not disclose known problems. Do they have a good reason for selling the car? The ones we like are 'I just got a new car' or 'my daughter just moved off to college, so we don't need it anymore'. Having a good reason to sell a car means it's less likely they're selling the car for an unethical reason, such as a major flaw, etc. Do they communicate clearly? This is an open-ended implication, but the fact is it is easy to get lax in the details; poor communication can lead to honest mistakes, and can be an excuse for blatant deception. Seen it many times, trust me. So, we call these 'Red Flags'; there are too many to fully itemize, but you get the idea, and you need to watch out for them.
Questions to ask: Are you the original owner? Original or secondary owners are the best, for obvious reasons. Is the car modified? Modified cars are almost always worse than stock cars; stay away from them unless you specifically want one. Certain cars have a greater tendency to be modified, so doing your research helps. Does the car have a salvaged title? This, too, we will discuss in better detail, but you should not even consider a car with a salvaged title. Has the car been in an accident? This is not always a major problem, but you want to know in advance, and should consider it one of those Red Flags we talked about earlier. Also ask if the car has had paint work. Poor quality paint work can be a problem, and it doesn't have to be resultant from an accident. How often do you change the oil? Every 3-5k miles is imperative. Yes, this may be debated, but we feel strongly about this. Do you have service records? I want to say this, too, is imperative, but the fact is many people are lousy about keeping records. Let's say this is another Red Flag. Why are you selling the car? This was mentioned previously, but applies to both topics. Again, there should be a good reason for the car being sold.
4. BE PATIENT. 95% of the problem cars people buy were bought in haste. If you resign yourself to following the formula, the odds are good you will end up making a smart purchase. Patience cannot be stressed enough.
5. RED FLAGS. I wish I could apply a formula to this, like a certain number of Red Flags means you walk away, but it's not that simple. Suffice it to say, the fewer Red Flags the better, because we're filtering here
6. BROKERS. Stay away from them. This may not seem fair to all those poor souls flipping cars for a profit, but here's the logic: First, you pay a premium off the top, as there is a pricing matrix called Retail Price, which is the price you pay the broker; it is usually at least $2,000 more than Private Party Price. Second, the formula works against you: brokers buy low, sell high; they usually do not know the vehicle history; they usually do not look for problems, as it is not in their interest to find them; they are in it for profit, nothing more. By and large, these cars tend to have the most problems, coupled with the highest price tags. Anecdotally, the Dealer Certified cars actually seem to be OK, but you still pay a premium.
7. SALVAGED CARS. We give this its own category to make sure it stands out. Stay away from salvaged cars! A car is salvaged when an insurance company determines that the cost of repairing it meets or exceeds the value of the vehicle. So, by definition, salvaged vehicles are NEVER repaired properly, because a proper repair makes no sense economically.
8. GET A PROFESSIONAL INSPECTION. Can't stress this enough. We could talk about how to inspect a car yourself, but that would read like a novel, and introduces so much subjectivity that it may cause more problems than it solves. So, regardless of your level of confidence in your own abilities, we feel it is critical that a professional who specializes in your vehicle performs an inspection. Aside from simply a second set of eyes and ears, a specialist knows what to look for. Of course, there is no way a mechanic can ascertain every nuance in the hour he spends with the vehicle, but he can surely tilt the odds in favor of your purchase being a smart one
9. FINAL NOTES. The vehicle must be Smogged in order to transfer title. There are many ways this can work, but the best thing to do is get the Smog Check before money changes hands. Also, something that is often overlooked is the Release Of Liability. This is a document attached to the Pink Slip. This document protects the seller, which is also you if you are getting rid of your old car. This document must be filled out and mailed to the DMV. We also recommend that the seller photo-copies it and saves it somewhere safe. This may seem a minor detail, but can save you from major complications in the future. As for where to shop, we like Craigslist online, Auto Trader online, the Buggy Bank in Berkeley and any and all classified ads in local periodicals. The basic idea is to cast your net as wide as possible; do not limit your resources to one or two venues.
