With a soft
economy and an uncertain stock market, more and more people are keeping
an eye on spending and they are interested in getting more for their
money. Kyle Busch has over a quarter-century of experience saving money
on transportation. He answers ten commonly asked questions about purchasing
vehicles and saving money.
(Q) Why does it make sense to consider buying used vehicles?
(A) Transportation is a depreciating asset that loses value,
especially during the first three years of ownership. Buying a 2- to
3- year-old used vehicle will provide about a one-third reduction in
the cost. Additionally, the initial owner will have "test driven"
the vehicle for the second owner.
(Q) What is a common error than many people make when buying
transportation?
(A) A common error when buying transportation involves buyers
not thoroughly identifying their transportation needs and then purchasing
a vehicle that does not entirely meet those needs. For example, a buyer
might choose a mid-size family sedan that satisfies many of his or her
needs. However, six months after the purchase, the buyer realizes that
another vehicle in the same category provides a softer ride, better
fuel economy, etc. and would have better satisfied his or her driving
needs.
(Q) After identifying transportation needs, what should buyers
do next?
(A) It is worthwhile to visit a local public library to research
which vehicle(s) will indeed satisfy specific transportation needs and
then identify those that have good reliability ratings.
(Q) Is it best to buy a vehicle from a specific source?
(A) Each transportation source has certain advantages and disadvantages.
However, the important thing to keep in mind is that a number of vehicle
sources should be considered (i.e., private owners, rental car companies,
company vehicles, off lease vehicles, new car dealerships, bank repossessions,
the Internet). When buyers inform a vehicle source that they are also
considering the other sources, better deals are usually obtained.
(Q) What questions should buyers ask by telephone to better determine
if a vehicle is worth their time to investigate?
(A) - How many miles has the vehicle been driven (the average
is about 11,000 to 12,000 miles per year)?
- Is the transmission an automatic, a semi-automatic, or a manual? If
the transmission is not what the buyer wants, there is no need to ask
further questions.
- Has the vehicle been repainted and if so, why? It is best to avoid
repainted vehicles.
- When are the next state inspection and emissions standard test due?
The vehicle should have a minimum of at least eight months remaining
until the next required state inspection and emissions test.
- How often were the engine oil and the oil filter changed, and who
performed the service? An acceptable answer would be every 3,000 to
3,500 miles or about every three to four months.
- Are you the original owner of the vehicle? Original owners tend to
take better care of vehicles.
- What is the reason that the vehicle is being sold? It is encouraging
if the individual is the original owner and if he or she is planning
to again buy the same make of vehicle.
(Q) What if the owner is lying when answering questions about
a vehicle?
(A) It is worthwhile to obtain as much information about a vehicle
as possible, therefore, buyers should ask questions. The interior and
exterior inspections, and vehicle test-drive help to verify the information
provided by the owner.
(Q) How long should the vehicle test-drive take?
(A) It is worthwhile to test-drive a vehicle for a minimum of
20 minutes on two separate occasions. The test-drive should include
a variety of roads that buyers will drive day-in and day-out.
(Q) Should buyers take a vehicle to a mechanic before making
a purchase?
(A) A mechanic should confirm what buyers have concluded after
they have inspected and test-driven a vehicle. Buyers should request
that the vehicle be raised on a lift for the mechanic's inspection and
that the mechanic test-drives the vehicle.
(Q) Of course buyers what to save money, but what protection
do they have when purchasing a 2- to 3- year-old vehicle?
(A) Most vehicles have manufacturers' bumper-to-bumper warranties
of three years-36,000 miles or four years-50,000 miles in addition to
five years-60,000 miles on the drive train (i.e., engine and transmission).
The warranties are transferable to buyers who purchase the vehicles
used. The warranties begin on the date that vehicles are first purchased
from new car dealers. Thus, it is important to determine the date when
a vehicle was initially purchased.
Buyers best interests are also served when they have performed research
to identify vehicles that have favorable reliability ratings.
(Q) What is a long term benefit of saving one-third when buying
vehicles?
(A) The average new vehicle costs about $15,000 to $18,000. Most
2- to 3- year-old vehicles will easily provide five or more years of
trouble free driving. If buyers invest the savings (i.e., $5,000 to
$6,000) and they are able to add $800 per year toward transportation,
after a five-year period, they will have the money needed to purchase
another 2- to 3- year-old vehicle without straining their budget.
Article reprinted with permission.
Kyle Busch is the author of "Drive the Best for the Price: How to Buy a Used Automobile, Sport-Utility Vehicle, or Minivan and Save Money." His website: www.drivethebestbook.com accepts all transportation questions.
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