Used Cars Below Cost

Research Used Cars
Check your local library for reference material on various car models, options, their comparative prices and their track-record for reliability. Check the Classifieds section of your local newspaper to compare used car pricing. Check various websites to learn whether a specific used car model has ever been recalled. Ask the vehicle seller for details concerning past owners, use, and maintenance. Find out whether the used car has been damaged in a flood, involved in a crash, been labeled a lemon or had its odometer rolled back. The vehicle identification number (VIN) can give you this information. Your state's motor vehicle department can research the car's title history. Inspect the used cars title for "salvage," "rebuilt," or similar notations. The National Highway Traffic Safety Administration (www.nhtsa.dot.gov) lists VIN numbers of its crash-test cars and will let you search an online database of manufacturer service bulletins. The Center for Auto Safety www.autosafety.org provides information on safety defects, recalls, and lemons, as well as service bulletins for used cars. Make sure any mileage disclosures match the odometer reading on the used car for sale that you're interested in buying.

Used Car Costs
The real cost of a used car includes more than its purchase price. Consider the vehicle's reliability. A used car that is unreliable may cost you much more in frequent repairs, as well as the aggrevation and even lost time from work. Financing terms can also significantly affect your total costs when buying a used car. Check with your local bank, credit union or even insurance company or motor club to compare current financing and interest rates.

Used Car Dealers
Check with your local Division of Consumer Services and the Better Business Bureau to see if they've received complaints about a particular car dealer. Never rely solely upon oral promises of a salesman; ask the salesman to put it in writing as oral promises are impossible to enforce. If you are considering buying a specific used car, insist upon having the vehicle inspected by an independent mechanic before you purchase it. Refusing to allow an independent inspection is a clear warning, and you should take your business elsewhere. Always ask if the used car has ever been in an accident.

"Used Car Buyer's Guide"
Federal law requires car dealers to affix a Buyer's Guide sticker on the window of each used car for sale on their lot. The sticker will inform you as to: whether the car comes with a warranty and, if so what specific protection the dealer will provide; whether the car is sold "as is" (with no warranties); that you should ask to have the car inspected by an independent mechanic before you buy; that you should get all promises in writing; and what some of the major problems are that may occur in any vehicle. If the deal was conducted in Spanish, you are entitled to retain a Spanish-language version of the Buyer's Guide.

Warranties
Buying a used car "as is" disclaims all warranties. You should not expect any legal protection if the used vehicle is a "lemon." In Florida, there is no Used Car Lemon Law. If the dealer does not affirmatively disclaim all warranties in writing, you will be covered at least by implied warranties of merchantability, fitness for a particular purpose (dealer's advice that the car will be suitable for a particular use, such as hauling a trailer), and good title. If the dealer provides its own written warranty, read the terms carefully to determine what repairs are covered, the extent of coverage and the other terms and conditions. The dealer may try to sell you an extended service contract. You should consider the extent to which the same repairs are already covered under the dealer's warranty. The value of a service contract is determined by whether its price is likely to be greater or less than the cost of repairs to the used car. The Federal Trade Commission requires dealers to post a Buyers Guide on all used cars for sale. This buyer's guide specifies whether the used vehicle is being sold "as is" or with a warranty, and what percentage of repair costs a dealer will pay under the warranty. Keep in mind that private sellers of used cars generally have less responsibility than dealers for defects or other problems. Private sellers generally don't have to post information.

Private Used Car Sales
You may save money by buying used cars for sale from a private individual, such as through the classified section of your newspaper. But you should be aware that private vehicle sellers do not have to provide you with a Buyer's Guide, and do not provide implied warranties under state law. It may be even more important to obtain warranty promises in writing and to obtain an independent inspection prior to purchase of the vehicle.