Why You Should Buy A Used Car Instead Of A New One

I hate losing money. I hate getting ripped off and being had. That is why I don't buy a new car.
Why buy new when you can buy used and save a lot of money?

In most cases, buying new is a foolish choice to make. You can buy quality used/pre-owned vehicles for 25-75% less than a new vehicle. Yes it is a little harder and you have to do more due diligence, but it is worth it. There's no reason why you can't find a good quality vehicle with up to 100,000 miles on it and be able to keep for another 100-200,000 miles.

Example, my last two cars:

• 1993 Acura Legend bought in 2000 with 98,000 miles on it. That car new was around $33,000, I paid just over $10,000. It now has 245,000 on it. I've never done nothing more than routine maintenance. The same maintenance you would have to eventually do on a new car.The car has been great. Only recently have I had a major issue...a blown head gasket...caused by excessive over heating...caused by a faulty thermostat...that should've been replaced earlier...cost on thermostat? Less than $30...cost to install it? About $60. Now I will purchase a used replacement engine from Japan that only has 30,000-50,000 miles on it (about $1500) and have it replace (about $1,500 in labor). Yes it will cost me about $2,500-3,000 to replace the engine, but that is a lot cheaper than buying a new car.
• 1987 Acura Legend bought in 1995 with 111,000 miles on it. That car new was over $25,000. I paid $3,700 for it. I never did anything out of the norm on that car either. I drove it till 285,000 miles. It started having some faulty issue with stalling while driving. I couldn't get anyone to figure it out. I ended up selling it to a mechanic. He took it home and had it fixed in a day.

So in the past 15 years, I've owned two cars and have spent about $14,000 on them combined. I've driven them for a combined 323,000 miles. That equals about .04 cents per mile to drive. Now compare that to buying say a new like vehicle for $25,000 (in reality much higher) and only driving it for 100,000 miles (or less, like most people). That cost equals .25 cents per mile...OR SIX TIMES HIGHER!

Vehicle Quality Reviews

This is my Vehicle Quality Review that I do on each vehicle and then share it with my clients.

How To Safely and Profitably Sell Your Car

1. If your state requires vehicle inspections, get a new/current one done. Some people like to know that the car has passed a state inspection.
2. Change the oil.
3. Clean the car really, really well inside and out, under the seats, all the nooks and crannies, shine the tires, wax the car, etc. A good first impression does help.
4. Advertise it on Craigslist and consider AutoTrader. The trouble with AutoTrader is, it is dominated by dealers. **Note: If you do Craigslist, be sure to post it to at least the localities within a hundred miles from you. That is what I like least about Craigslist is you can't do a radius search (not that I figure out anyway). But there is a service called SearchTempest.com that allows people to search Craigslist by zip code radius search.

When advertising do the following:

1. Check to see what others are asking for theirs.
2. Put up several exterior photos, picture of the engine, trunk, and several interior photos including a picture of the odometer.
3. Explain clearly the basics of the car (year, make, model, miles, color)
4. Explain the condition of the exterior and interior (make note of any defects, but don't overemphasize)
5. If the car has been in an accident or had any body work, explain what happened and how long ago.
6. If the car has had any major repair (trans, engine, etc.) explain and give time frame.
7. Note any recent repairs and/or service work that has been done. If you have service records make that known.
8. Above all, be perfectly honest about the car

When someone is interested in your car:

1. If you are a woman, I would have a husband, father, brother, significant male be there when showing the car
2. Get a full name and number prior to giving them your address or where you will meet them. If you meet them somewhere other than your home, have another person follow along in another car.
3. When they arrive, ask them to show you their drivers license...make sure it is valid and current before letting them drive your car. Take down the address.
4. Going on a test drive with them is a gut call. I don't usually do it. I think most people prefer to go by themselves. Some may want you to come along, if they do and they look trustworthy, then make that call.
5. For $1700, I would do cash only and give them a receipt. If someone pays by money order or certified check they are generally good. You can always go cash it or deposit it right then and there.
6. If the buyer wants to take the car to a professional service place/mechanic to have them check it out, by all means let them. Find out which service shop and what time YOU should take the car by to have the shop check it out. If they want to take it to their "mechanic friend", then that is another gut call. If I trust them, I would probably do it. I would just want to know when, where, who, and how long for.

After they agree to buy the car, you need to deal with the tags on the car. You have several options:

1. You can let them go with the tags on the car and ask them to mail them back. I would not do that, but that's me.
2. If they are somewhat local, you can drive the car to their home, take the tags off and have someone bring you back or follow along to bring you back.
3. They can run down to DMV with the title and get new tags and then come back.
4. You can take the tags off and have them haul it/tow it away.

 

Forbes: Worst Made Cars On The Road

Here's an article from Forbes Magazine about what they say are the Worst-Made cars on the road.

Articles like this can be helpful, but you sometimes have to take them with a grain of salt. The surprise vehicle on there to me was the Ford F-250.

Here's the article.

Die-hard drivers: 200,000 miles and up

Yes, you can keep a car up to 200,000 miles and beyond. I am a firm believer in expecting to get at least 300,000 miles out of a car. To most people that seems far fetched, but it is not.

I personally don't typically buy a car till it has around 100,000 miles on it. And except for one vehicle, I've never had any issues. Let me share my tips with you.

1. To start, you need to buy a good quality used vehicle. I usually buy either Acura's, Honda's or Toyota's. Of course there are other good quality vehicles on the market.
2. When I buy a car, truck or van I check it out. I take for more than just a "test drive." I like to drive it for 50-100 miles. This gives me time to find out if I really enjoy driving the car, am I comfortable in the vehicle and are there any apparent issues that I am noticing.
3. I may or may not take a car to a mechanic. Because I'm in the industry, that does give me an advantage, but I am no mechanic, so if I feel the need, I will take it to a mechanic and have them check it out.
4. I also get up close and personal to the car. I check the paint work by looking for overspray, "orange peel," and other signals that the vehicle has been painted. I look for any apparent body work as well. Now you might be surprised, but in my experience I would say that somewhere between 25-50% of vehicles on the road have some sort of paint and/or body work. In most cases it is not a big deal. Let me point out something that you must understand. You can not trust CARFAX or AutoCheck to tell whether or not a vehicle has been in an accident. I do suggest you get a CARFAX or AutoCheck report, but I urge you not to trust it when it comes to telling if the car has been in accident. The fact is, CARFAX and AutoCheck don't know about most of the accidents that vehicles are in. Plus their data is not always current. Keep posted because we plan on holding a consumer seminar and workshop on how to tell if a car has been in an accident.
5. When I own a car, I seek to take good care of it by changing the oil every 3,000 miles and keeping the fluids filled, the filters replaces when needed and taking care of basic maintenance when needed. I don't take my car to the new car dealer for service. WAY TOO MUCH MONEY. I find a good local mechanic to take my car to. Here in Charlottesville, I have been very please with Airport Auto Center on Airport Road. I also highly recommend a mobile mechanic. He is an ASE Certified Technician that comes to you. If you would like his number, please e-mail me.

Our family currently has two vehicles. A 2003 Honda Odyssey with almost 100,000 miles on it. The only odd issue I've had was power window issue some time ago and just recently one of the rear windows is not functioning properly. These are minor repairs. I also have a 1993 Acura Legend with almost 250,000 miles on it. It was running great, until I had a couple overheating issues. Now I have a blown head gasket. My solution? I will get a "Take-Out" engine and have it put in. A "Take-Out" engine is an engine that comes from Japan and was taken out of the same vehicle at around 30-50,000 miles. Because Japan has very high emissions standards, vehicle owners are required to replace their engine every 30-50,000 miles.

So I can buy a Take-Out engine for around $1,500 and have it put in for $500-1,000. Bottom line, I get a relatively unused engine for $2,500. THERE'S NO WAY I COULD BUY ANOTHER USED VEHICLE OF SAME QUALITY FOR THAT MONEY!

I hate wasting money or getting ripped off. And just about every time you buy a new car, you are getting ripped off. Ripped off, because of the depreciation, not because they charged you too much. So buy a quality pre-owned car before you buy a new one. It is a wiser financial decision!

This article from CNNMoney shows some people with high mileage cars.

For more information, keep posted or contact me here.

Airport Auto Exchange sells used, pre-owned cars, trucks and vans in Charlottesville, Virginia to a diverse clientele. Call or stop by.