Used Car Buying

Filed under: Lending, School Age, Young Adults, Adults, Retirees

It makes economic sense to buy a previously-owned vehicle. Considering how rapidly new cars depreciate in value (by as much as a third as soon as it's driven off the lot) you can save substantially by buying a car just one or two years old.

But there's a downside, of course. Your used car "bargain" is only a good deal if the car is in good condition. It's a huge and costly error if it is not. As a result, buying a used car requires more work than buying new. Not only do you have to choose the model you want and negotiate the price, you have to determine if the particular car you're thinking of purchasing is in sound condition, inside and out. Here's just some of what to look for:

Examine the exterior. Check for signs of rust. Are there bubbles in the paint or around the moldings? Is there fresh undercoating (hiding rust)? A new paint job, particularly in a car just a few years old, may either be a way to hide rust problems or be a sign that the car has been in a major accident. Also look for broken or cracked glass or plastic, check to see that the tires match and that the tread is wearing evenly, and open and shut all doors. (A door that sounds "off" can be a sign of major frame damage.)

Examine the interior. Check for missing door handles and control knobs, and check the radio, horn, wipers, lights, air conditioner, heater, power windows, and door locks. Look for rips and tears in the upholstery. Also take a look at the odometer reading to see that it's in line with the age of the car.

Pop the hood. Check the fluids for correct levels: radiator, oil, transmission, brakes. Low levels could indicate that the car has been neglected or that there is a leak. Look for signs of leakage around the engine and under the car. Check the belts and hoses for cracking.

Take a test drive. Listen for any unusual noises, and make a mental note of the "feel" of the car. Some things to watch out or are "fading" or grinding brakes, jerky shifts in the transmission, poor suspension, faulty steering.

Your best move. Have the car inspected by a professional mechanic. This extra precaution, and minor cost, can save you untold headaches (and money) in the future.

Your credit union can provide you with NADA book values for the cars you're interested in, as well as low loan rates. Get both car values and loan rates online at www.decu.com or talk to a loan officer at the Earthmover location nearest you.

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