New or used car?

By purchasing a used car, you can save a lot of money.

A new car depreciates quickly in the first few years and after 3 years, it is worth only about 60-70% of the original price. In fact, as soon as you leave the dealership, your new vehicle is suddenly worth 5-10% less.

When purchasing a new car you basically are paying for its fresh "new" aroma and warranty. Yet, buying a new car does not always mean the buyer will get perfection. A new car may come with problems associated with poor design or manufacturing defects that may have been already repaired during the warranty coverage period if it's a used car. The same is true for all kinds of recalls and service campaigns.

Another advantage of buying a used car is that you could buy a loaded model with all the bells and whistles that you might not be able to afford had you bought a new car.

However, buying a used car is still a bit of a gamble - there is no guarantee that the car is accident-free, has real mileage, and was properly maintained. There may be some hidden problems like a worn out automatic transmission, or engine problems that may not have been obvious when you test-drove the car. So, next you must ask yourself:

•Will I save money when buying a used car?

•How do I eliminate the risk of potential problems and is this actually possible to do?

First, be prepared. Do as much research as you can. Read reviews, consumer reports, ask colleagues and friends, compare options, gather gas consumption data on the make and model you're interested in. Examine reliability ratings. Try to determine maintenance costs and upkeep, etc. Your goal should be to narrow your search to one or two models. Why? Because if you just enter a dealership without knowing what you want, chances are more likely than not that you won't be happy with your purchase. Later you may find out that it's simply not exactly what you wanted or what you can afford. Someone I know bought a used BMW wagon for quite a reasonable price. When he went for servicing, they discovered that the rear shock absorber was leaking. The price for the part alone was close to 1000 euro! Finally, he sold his BMW and bought a used VW that proved less expensive to maintain.

Another purpose to narrow your choice down to only one or two models is because when you test-drive a few different cars of the same model, it will be much easier for you to compare their condition and pick the best one. Recognizing a transmission problem during your test drive would be easier to do if you were to try a few vehicles of the same model instead of becoming confused by testing out different models.

Second, without a doubt, you should check a car's history records. This will help you to eliminate half of the vehicles from your list with potential problems. Vehicles that have been flooded or restored after serious accidents, those with rolled back odometers, heavily abused vehicles (e.g., ex-rentals, real estate agents cars), those with outstanding liens, etc., can be eliminated after simply checking the history record of the vehicle. In fact, it is not even a good idea to look into a car until you check its history.


Third, don’t buy based on what you've been told because it may not always be the truth. Check out the car yourself very carefully. Ask a knowledgeable person who knows about cars to help you.

As a final step, bring the car to the mechanic you trust for an inspection. A word of caution, NEVER give a deposit or sign a contract before the car is inspected.

Fourth, Be extremely careful when doing the paperwork. For example, if you buy from a private owner, make sure there are no registered liens against the vehicle and that the person who signs the Bill of Sale is the actual owner of the car. Check with the Vehicle Registration Authorities to make sure the car has not been stolen.

If buying from a dealer, read the warranty policy and all the papers including the fine print very carefully. If it's a "Certified" used car, you'd be wise to check exactly what items were checked off and approved because sometimes the car might have a history of an accident in the past, come with a poorly maintained engine and still be Certifiable. Do not rely on a salesperson's verbal promises. Whatever is promised, get it in details in writing. Find out if the remaining original warranty will be transferred into your name. Different manufacturers have different warranty policies. For questions about vehicle registration, change of ownership, legal aspects, etc., contact your local Vehicle Registration authorities.

So buy your car and enjoy it. After that tell us how you felt.

Auto Time Team

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