(ARA) – If your old clunker is gasping its last, you might think (like millions of other Americans these days) you can save yourself some money by buying a used car instead of a new one. You can — if you make smart buying decisions. Hasty or unwise used-car buying can end up costing you much more in the long run.

As new car sales have crashed, purchases of used cars continue to rise, according to many news reports. In March, PBS reported that dealerships sold more than 2 million used cars in recent months, about 25 percent higher volume than you would expect in a healthy economy. The math behind the trend is simple: new cars cost more than used, depreciate faster and are generally costlier to insure, so more Americans are buying used to save money.

But what about repair expenses? If you buy a used car for $15,000 and it costs you $5,000 in repairs in the first year, have you really saved? To ensure you’re buying a used vehicle that won’t turn into a money pit, follow a few simple steps:

Early in the Process:

Repairs are a reality of used car buying. As vehicles get older, they begin to need more maintenance and repairs. Some newer model used vehicles may still have some factory warranty left, but older models usually do not. An impending need for repairs, however, may not necessarily be a deal-breaker if you find out ahead of time how much those repairs might cost and budget appropriately.

You probably already have a few makes and models in mind. Before you settle on one, compare the cost of the parts needed for the most common repairs and maintenance. One model may have a sales price that’s $5,000 less than another you’re considering, but if the cost of parts is 20 or 30 percent higher than parts for another vehicle, the higher priced model might actually be a better deal.

Turn to resources like RockAuto.com to compare parts prices. The site’s Repair Index automatically pulls prices from the company’s vast auto parts catalog based on year, make, model and type of part. It’s a quick, easy way to compare parts costs for different models and the results can be surprising.

For example, you might think a Chevy Metro is an economical car, but parts for one can be expensive, according to RockAuto, which sells parts for an average 20 to 60 percent less than other parts dealers. The bulk of the company’s business is selling parts direct to consumers, so it’s possible to save even more money by buying parts directly and doing repairs yourself. Visit www.RockAuto.com to learn more.

Next, check the repair history for a particular make and model from a credible source like Consumer Reports. The independent ratings organization maintains a huge database of information on virtually every make and model vehicle available in America. Actual owners and drivers contribute the information based on their experiences with a particular vehicle.

Once You’ve Narrowed it Down

When you find a vehicle you’re interested in, check the repair history and maintenance for that specific car. Pull a vehicle history report from a third-party source like CarFax, which will generally list major (reported) maintenance and accidents. The report can also help you spot discrepancies in odometer readings, if the vehicle has been used in an area prone to flooding, or if it’s been rebuilt after being in an accident so severe it was declared a total loss.

Never buy a used car until you’ve had it checked by your own mechanic – not even from a dealership that offers “certification” on its used vehicles. If a seller isn’t willing to let you take the vehicle to your mechanic, walk away.

Finally, consult your insurance agent to see how much it will cost to insure the vehicle. A used car that actually increases your annual premium may not be the great deal you thought it was.

Courtesy of ARAcontent

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Even with American automakers’ very public struggles to stay afloat, many financial and business experts agree that the American automobile industry will never disappear. But a perfect storm of rising inventory, greater competition and economic factors make this summer a particularly good time to buy a new car. 

Factors driving the trend include: 

* Ample inventory – Right now, most American auto dealers have about a six-month inventory of new vehicles on their lots. That means if they stopped adding cars to their inventories tomorrow, they’d still be able to sell for six months before they ran out. 

Ideally, dealers prefer to keep smaller inventories — just a few months’ worth — because every unsold vehicle costs them money the longer it sits on their lots. For potential buyers, this excess of inventory means more motivated dealers and a wider selection of makes and models to choose from — even high-demand hybrids. 

* Incentives – From zero percent financing and no-money-down deals to low interest rates on shorter-term loans, dealers are offering a plethora of incentives to woo buyers. Rebates and employee pricing have been around for a while, but last year several car companies introduced programs that promise to make at least some car payments for you if you lose your job (and income) within a certain time frame after buying one of their cars. With the arrival of warm weather – traditionally a prime car-buying season – dealers and automakers are rolling out new incentives every week. 

* Financing – With competition for your car-buying dollar expected to become even fiercer, your financing options may soon expand. You’ll be in an especially good position to land a deal if you know the power of your credit score prior to negotiations. 

Your credit report and score give lenders a better idea of what kind of credit risk you may be. The higher your score, the more likely it is that you will be able to negotiate good finance terms for your auto loan. 

If you don’t know what’s on your credit report, find out before you head out to the dealer’s lot. Web sites like FreeCreditReport.com give you instant access to your free credit report and score with enrollment in their in Triple Advantage Credit Monitoring membership. 

* Competition – Not only are new car dealers competing with each other, they’re competing with a booming used car market. More Americans are opting to buy used vehicles, perceiving them as cheaper to purchase. Yet new cars most often cost less to operate and maintain, so buying a new car now (when everyone else is looking for used) may actually make greater economic sense for you in the long run. 

Finally you might consider buying a new car because it’s one way you can actually help the economy. Recovery from the recession is everyone’s concern and responsibility, federal officials have said. Contributing your hard-earned dollars to support a vital American industry can not only put you in a new set of wheels you’ll enjoy for years, it can give you a sense of doing your part for the economy as well. 

Courtesy of ARAcontent

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But before jumping into the market, you should gain a clear understanding of your credit and financial profile to know what you qualify for and if it’s the right time for you to buy a car.

“Through a simple check of their credit reports and scores, many consumers are likely to find that they’re in a solid position when it comes to cashing in on these troubled-economy car deals,” says Lucy Duni, vice president of consumer education at TrueCredit.com by TransUnion. “At the same time, it’s important for consumers to set their limits based on their credit position and their overall finances, because there are many costs associated with making a car purchase, including regular maintenance fees and insurance.”

TrueCredit.com is offering simple tips to guide consumers on the road to making a smart car purchase:

Tip 1: Rev-up your report knowledge.

Review your credit report on an ongoing basis to ensure it accurately reflects your credit history. Your history will dictate your credit score and your score affects your loan rates. Always know where you stand by signing up for TrueCredit Messenger, a free application that is downloaded to your desktop and lets you know when there’s been a critical change to your report.

Tip 2: Make necessary tune-ups.

Whether or not you’re in the market for a new car now, keep a close eye on your credit report. If you spot something that doesn’t look right, you should first contact the creditor involved. If that doesn’t solve the problem or if the issue doesn’t involve a specific credit or loan account, contact the appropriate credit-reporting company directly. If you have significant issues with your reports, consider delaying your purchase until those issues are resolved to help you get the best rate available.

Tip 3: Protect Yourself.

Your credit behavior influences more than just your loan rate. It often plays a role in determining the monthly insurance premiums for your home and car. If you’re getting ready to shop for insurance, TrueCredit.com Insurance Scores let you see ahead of time how you’ll likely be viewed, allowing you to take proactive steps to improve your own credit health that could result in lower premiums.

Tip 4: Make an age-defying purchase.

Decide if you want to buy a new or used car. Buying a used car can save you a heap of money if you do your research. Since new cars generally depreciate 10 to 35 percent during the first two years, it’s a good idea to check the depreciation rate on the car you’re interested in by looking up the current price and the price for the same car made two years earlier. On the other hand, many of the factory incentives are on new models, so you may get a better deal with a new car right now. It’s important to shop around to find the best deal for you.

Tip 5: Luxury vs. economy — calculate how much you can afford.

Before you decide that a car is right for you, it’s a good idea to evaluate your balance of debts and assets to see how much you can really afford. Also determine if you have a trade-in or down payment to help you pay for the car. These assets can help you negotiate a better rate with lenders and can be especially important if you have problem credit.

Tip 6: Navigate your options.

When you’re ready to talk to lenders it’s a good idea to shop around for the best available interest rate. Visit your local bank or credit union to discuss applying for an auto loan. Financing with the car dealer can sometimes be more expensive, so pricing out your options is a good idea. And don’t worry. Shopping your loan with multiple lenders over a several weeks will generally have the same net effect on your credit reports as checking only with one lender.

For more tips on managing your credit, visit www.GoTrueCredit.com.

Courtesy of ARAcontent

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First select a sturdy, efficient car that has a proven track record of performance and dependability. Thought must be given to a variety things including: type of car, size, gas mileage, maintenance, service contracts and insurance. Some cars carry a higher insurance premium due to the theft ratio. With the fluctuating price of gas, consider models that get the best gas mileage.

With the automotive industry in crisis, be on the lookout for over-zealous car dealers who are trying to turn every consumer visit to the dealership into an immediate sale. Shop around various dealerships for the best bargain you can find. It is important to be an informed shopper. Read the automotive section in the newspaper to become familiar with prices and deals available. An informed consumer can force the dealer to reduce his offer two or three times.

Consider your needs, lifestyle and road travel requirements. A mother with children who is active in the community car pool may consider an SUV to be the best fit. A business executive who often travels with clients, customers and potential customers may look for a more traditional four-door sedan as a good fit. A single person without a lot of family ties may be interested in a sporty, fast, two-seater vehicle as a perfect fit.

Make sure you select a car that is affordable for your budget and lifestyle. It is important to select a vehicle that will have a payment plan that allows easy manageability along with other financial obligations such as mortgage, rent, food, utilities and recreation. Buyers are encouraged to pay special attention to financing rates.

“Shop the financing before you buy. Buyers can be approved for a dollar amount and fill in the car later. Then check what the dealer is offering,” says Robert Lindquist, professor of business at Argosy University, Orange County.

Lindquist also recommends car buyers make sure that a low-interest quote is simple interest, and not add-on interest which doubles the rate and, ultimately, costs the consumer more.

In addition, Lindquist advises buyers to consider purchasing an extended warranty, particularly if you finance the car for longer than 36 months. The average car warranty is three years or 36,000 miles.

All of these factors are crucial when selecting the right vehicle for you. It is important that consumers are thoughtful in choosing a car that complements their lifestyle, and is affordable for their wallet.

Courtesy of ARAcontent

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By Diana Robinson

(NC)-Thinking of buying a used vehicle, but you’re not sure what you should be looking for? Keep these tips in mind as you search for your next dream vehicle.

1. Consider carefully where you buy the vehicle.

There are many places to purchase a used vehicle today. A reputable car dealership, a manufacturer’s certified pre-owned lot, a newspaper ad, an online ad, a private individual – there are many options, but you may be more comfortable dealing with one option over another.

2. Check that the paperwork seems to be in order.

Does the Vehicle Identification Number on the dash match the one on the door and the registration records? Are the Vehicle Registration forms the original ones and not copies? If the seller is a private individual, ask them to show photo ID to verify the name is the same as on the vehicle’s paperwork.

3. Ask to see all repair receipts for the vehicle.

Review all records to identify any potential future problems and to ensure the car has been properly maintained. Keep in mind that stolen vehicles generally don’t come with repair records.

4. Ask to see or purchase a vehicle history report.

A vehicle history report will tell you the car’s complete history. This information can be the most important you will receive in your decision making process, giving you complete peace of mind about the vehicle you are buying or saving you thousands of dollars in unexpected repair costs down the road. CarProof Vehicle History Reports is a Canadian company that offers the most comprehensive report available. More information is available online at www.carproof.com.

5. Look carefully at the vehicle in the daylight.

Does the vehicle look like it’s been properly maintained? Is there any visible damage? Is the paint an even colour all over the vehicle? Is there extreme wear and tear anywhere or does anything seem brand new?

6. Take the vehicle for a test drive.

Forget how fast it goes, how does it really feel as you are driving it? Does it pull to one side? Does it seem to smoke or do the brakes squeal? All these could mean expensive repairs.

7. Check the odometer.

Does the number of kilometres seem appropriate for the age and reported use of the vehicle? The average is 16,000-20,000 kms a year. Does the rest of the vehicle show more wear and tear than expected for its age?

8. Ask for a written statement about any accidents the vehicle has been in.

A recent survey conducted for CarProof Vehicle History Reports found that the biggest concern for 64 per cent of Canadians when buying a used vehicle was that it may have been damaged in an accident.

9. Get the car checked by a mechanic before the sale is finalized.

A qualified mechanic will be able to detect if the vehicle has hidden repairs, includes welds that were not done at the factory. They will also be able to determine if the vehicle is in proper working condition.

10. If something about the deal seems too good to be true, it probably is.

The car could have been rebuilt after being declared a complete write-off after an accident, or it could be stolen. Walk away if you are not completely comfortable making the purchase.

Credit: www.newscanada.com

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Approximately 25 per cent of all vehicles have some sort of accident claims recorded against them. It’s important to ask a seller if a vehicle has been in an accident and to get a written report of the vehicle’s accident history. This will ensure you are fully aware of potential problems that could arise. For instance, if it is a serious enough accident or if the repairs are not completed as required by the manufacturer, the warranty may be voided. Ask the seller to provide a vehicle history report if you want complete and full disclosure about accident claims, but make sure it provides accident claims information.

Credit: www.newscanada.com

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Considering the money you are likely to invest in a sports car, it makes sense to research extensively prior to buying the car.  Good research can help ensure you end up in the perfect sports car for you—not only in terms of design and function, but also in terms of your pocketbook.

There are three principle resources that should be consulted prior to investing in a sports car.

Internet

The internet offers an incomparable quantity of information that can be of tremendous value to a prospective sports car buyer.  One can find car reviews, technical breakdowns and analyses, and various automobile sellers though quality internet research.

In addition to gathering mechanical information and base insight into different models of cars that might appeal to you, the internet also gives you a chance to perform a global analysis of asking prices and deals being offered on the types of cars that interest you the most.  You may learn that dealers in more distant regions of the country are able to provide better deals on the specific model you covet.  Locally, you might be able to find the asking prices from several dealers in your area. 

One must, however, take care to consider the quality of the source material they discover while perusing the ‘net.  One of the greatest attributes of the internet is that it allows an easily accessible forum for people of all types.  When conducting research, that quality can also be a detriment.  Try to keep in mind the apparent source qualifications and biases that might be present when gathering sports car information via the internet.

Publications

Although the internet offers a wealth of information, traditional print publications remain a tremendous resource.  The automobile publication market is crowded with a variety of titles, many of which might offer great detailed insight on the particular cars in which you are interested.  It is not uncommon for many automobile makes to have titles centered specifically on them.  These sources can provide analysis and information you may not be able to find anywhere else.

Any local newsstand can give you a variety of options.  A local library may also be able to supply you with both current and back issues of popular automotive magazines.  This can be of great value when considering a used sports car.  Articles written about the car when it was introduced may contain information that is hard to find on the internet and is not regularly presented elsewhere.

Experts

Prospective sports car buyers often overlook one of the most valuable resources available:  local experts.  If you are interested in purchasing a particular make or model of sports car, it makes great sense to discuss your prospective buy with mechanics specializing in their care.

A mechanic who specializes in English imports, for instance, might be able to tell you what to expect in terms of regular maintenance costs or if the particular English sports car you are considering is especially prone to any mechanical problem necessitating expensive repair.

Mechanics and other experts are likely to give you a unique perspective that one can only gain from being “under the hood” on a regular basis.  Even the most ardent do-it-yourself type can benefit from the knowledge imparted from an expert repairman.  Their opinions can be of special value when considering a used vehicle, as mechanics often know what problems are likely for older cars and can give you an idea of how much money you can expect to spend to keep your purchase in perfect running order.

Consulting with mechanics also provides a value in excess of the information gained.  You may find someone you can trust to work on your sports car in the future. 

After conducting extensive research on the sports cars in which you are interested, you can move to discussions with dealers and other sellers with additional confidence and an expert understanding of the vehicle. 

Performing great research prior to stepping onto the lot will help you narrow your search, pick the car that meets your needs, and leave you much better prepared to begin price negotiations as you seek out the perfect sports car. 

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New cars are wonderful, of course, but there is something special about older models.  In the sports car realm, many older automobiles are very coveted collectible items and have surprising value.  Sports car aficionados recognize quality and seek to preserve it.

Although one can never be sure they will pick a winner and not a lemon, there is a two-pronged approach that should be followed:  Research and Investigation.  Research refers to gathering background information on the vehicle make and mode.  Investigation refers to carefully evaluating the automobile itself.

Research

Research the car in question.  Research it thoroughly.  Yes, consult the Blue Book and determine its estimated value, but don’t stop there.  Find out what kind of problems the car in question most often experiences.  Find out what telltale signs of problems might be evidenced in a used version.  Learn the car inside and out before making the deal.You can perform this research at the library, via the internet, by discussing the matter with experts and experienced professionals or through any other number of potential means.  Your research methodology is not as important as your research results.  You need to know what to look for and what the car is probably worth before making an offer.

Make notes and formulate a checklist of things you will want to investigate on the car you are considering.  Take your notes with you along with any questions you might have for the owner that have been spurred by your research.

Investigate

Knowing about the car in general terms is essential.  Your research has provided you with a great overall perspective on the make and model you are evaluating and you have an idea of what to look for.  Now, it is time to take the next step and investigate the car being sold.

Ask to see service records.  If you are very interested, invest in obtaining a CarFax or similar vehicle history report.  Find out everything you can about the car you might be buying.

Your investigation is not just a matter of pushing papers, however.  Now is the time to put your knowledge to work.  Physically inspect the car closely, noting deficiencies that will require repair work, and paying close attention to any areas your earlier research indicated might be troublesome.  When test-driving the car, keep your mind on specific issues and problems you know to be common or possible with the car. 

Don’t rely on your own investigation alone.  Get a second opinion.  Find a mechanic who specializes in working with the type of car you are considering and take the car to them for an inspection if it passes your initial check.  The seller should be happy to let you do this.  If he or she is not, that should be considered a warning that all might not be well with the car.  A mechanic may or may not charge for a once-over on the auto.  However, if there is a nominal charge involved it will be well worth the expense if it helps you avoid a horrible purchase.

If your research indicates it is a sports car with which you could be happy and your investigation shows it is free of visible problems, the buying process can proceed.  It’s at this point that one begins to discuss price.  If your research implies this may not be the right kind of sports car for you and/or your investigation shows problems with the vehicles that are in excess of your willingness to undertake repairs, you should not buy the car.

If your research and investigation lead you to avoid a car, it will seem as if you learned a great deal for very little.  In reality, however, your effort not only increased your knowledge base for future car shopping but also may have saved you from a nightmarish investment.

When considering a used car purchase, always be sure to emphasize both research and investigation.

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Research the Market

A prospective buyer should investigate the prices being asked for the cars in which they are interested. Local newspaper ads, as well as an internet sites can provide you with a good way to determine prevailing asking prices. Internet research can supply you with information regarding the asking price for similar cars throughout the world. This information will help you decide what a sports car is worth and what drivers in other areas of the world are paying for the vehicle.

Patience is a Virtue

Do not negotiate with sellers until you are ready to buy, and avoid being pressured into making a decision right away.

This also means one should avoid pretending to be an immediate buyer when dealing with salespeople.  Feigning immediate interest is not a good practice as the salespeople will not know if or when they should take you seriously.  If you later return to a salesperson, they may not show you adequate attention or interest if you have “played games” with them before.

When feeling out the market, one should also wait to discuss the price one is willing to pay.  Providing a salesperson with a specific price range while investigating the market is a feeding tool the sales person can use to get an idea of how much they may be able to push a price upward. This also gives them an opportunity to direct your attention to specific vehicles that may or may not meet your expectations.  While being patient, discuss price in broad terms and avoid excessive specificity.

Negotiate Wisely:  Use the Telephone

When you feel you understand the market and have pinpointed potential sports cars in which you have a strong interest, you will need to begin the negotiation process.  One should enter this critical aspect of sports car purchasing with an awareness of good negotiating technique.

One should strive to negotiate via telephone instead of dealing with sales staff face-to-face.  In-person negotiation puts the buyer on the salesperson’s home territory, giving them a greater degree of comfort and advantage.  For instance, face-to-face negotiation allows salespeople to “work in packs,” approaching the customer from multiple angles simultaneously, potentially clouding key purchase issues.  At the dealership, salespeople can also use “tricks of the trade” such as checking for “management approval” in another room, creating pressure opportunities.  Pressure can be a salesperson’s greatest asset, and accessing them by telephone leaves you in a less restricted position. Remember, sports car salespeople are talented professionals.  If you are in their presence, you can expect sales pressure to be exerted in any number of ways—some of which you may have never expected.    

If you are dealing with them on the telephone, they have to talk to you, are less able to play games with you, and are less able to effectively use emotional ploys.  You cannot be passed from one salesperson to. Telephone negotiations allow you to have critical information right in front of you and allow you to take time to discuss your automobile purchase with other trusted sources before sealing the deal.

Retain Your Power

Often sports car buyers feel like sellers have the upper hand.  This feeling of powerlessness can lead to poor decisions during the buying process.  One must remember that, as the consumer, they are in a powerful bargaining position.

Early research allows a sports car buyer to understand competing prices and to use this information to move sellers into lower costs.  An informed potential buyer should feel comfortable using their research and understanding of the sports car market to their advantage.

At some point in price negotiations, a sales person will provide what is clearly a final price.  At this point, the prospective buyer still needs to retain their bargaining clout.  Ask the salesperson to unbundled the price of the extended warranty and compare that to the original price.  Ask if there are financing options that can further reduce the car’s price.  The smart sports car buyer must continue to keep his or her own best interests in mind.

Be a Reasonable Person

Even though a smart buyer will be tenacious and well informed, it is necessary to retain a level of civility and politeness in sports car price negotiations.  The staff at the dealership may be an important ally if your car subsequently needs repairs.  A good relationship with a sports car dealership can also be of great benefit for future purchases.

So, even though one must be a strong negotiator, it is not necessary to push salespeople too far or to engage in inappropriate argument.  Haggling for a great price is perfectly acceptable, but it should always be done in a professional manner.

Remember, these five tips can make the often-difficult sports car buying process easier for any buyer.

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