When you buy a used car, there's often less transparency for you as a consumer than when you buy new. Here are three areas to focus on to give yourself an advantage.
The Safety Rating Of The Vehicle
Factors that influence safety ratings may be different when you buy a car than when it was produced; also, it may be difficult to find the rating for your specific make, model and year of manufacture. The National Highway Transportation and Safety Administration (NHTSA) has a website where you should be able to find the safety rating for your car of interest, but if not, the following features are essential for protection:
- Head protection: Material that absorbs the energy of an impact, usually hidden in the vehicle's interior trim, or air bags specifically designed to protect from the neck up.
- Head-restraining features: Additions to the seats, such as adjustable extensions, which minimize jolting if the vehicle is hit from behind.
- Anti-lock Braking System: A wheel-locking prevention feature which provides greater steering control, helping the driver to avoid accidents.
- Traction control: Improves the stability of the car during rapid acceleration.
- Electronic stability control: Aids in steering under frantic or extreme conditions, such as sliding in snow or on ice.
- Vehicle weight: A heavier car means less force is absorbed by occupants in a crash, making it safer than a lighter model.
- Airbags: Front and side airbags protect against occupants making impact with the windshield, steering wheel, dash and side door or oncoming vehicle. Previously deployed bags aren't suppose to be reused, but that doesn't stop some from trying. Be sure by finding out about the vehicle in question.
Depreciation Of Your New Used Car
If you don't plan on driving your used vehicle until it's completely worn out and ready for the automotive graveyard, you should consider the various factors affecting depreciation. Although depreciation eventually slows down as a car ages, it will change how much you're able to sell for later, and be influenced by these numbers:
- Availability of the model: Supply and demand increases or decreases the retail value.
- Features: A car loaded with features may retain value better.
- Mileage: The fewer, the better, so keep this in mind before you buy your used car and travel with it.
- Fuel efficiency: Even older cars with great fuel consumption numbers sell for more.
- Model replacement cycles: Determines how quickly a certain model is rendered obsolete or less valuable.
If you find a used vehicle you like with low mileage that is less than a decade old, you're more likely to suffer less with depreciation on initial price and when reselling, plus have a lower monthly payment and insurance rate.
The Manufacturer's Warranty
Even when buying new, manufacturer's warranties can be confusing; it's important to ask for clarity from any seller regarding your protection with a used vehicle. A manufacturer's warranty should be valid until the specified expiration period, which begins at the time of the original owner's purchase, not when the vehicle was made. So, if your interest is peaked on the used car lot and the original owner purchased the car one year ago, subtract one from the total years of guarantee to determine what you will be left with.
If you're looking at an as-is, no promises deal and would like to purchase coverage, a well-researched extended warranty should do the trick. Your best bet may be an exclusion warranty (covering all but the excluded parts) and one that doesn't exceed what you might anticipate to pay in repairs. If you've investigated your seller well and qualified them as trustworthy, though, ask them for warranty recommendations based on their knowledge.
While there's sometimes greater risk buying a used car than new, your consumer savvy can make up the difference. The key is knowing what details impact the deal and how to assess them.
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