Used Car Advice

I participate in a number of auto consumer discussion boards where I seem to answer some of the same questions over and over. That's a great way to pick topics for this blog. I know the "hot" topics that are of interest to a lot of people.

This post will be related to a question most often asked by young people buying their first car: "Where can I buy a used car for less than $5000 [or some other relatively low price]?"

Behind the question is usually someone who has no experience with selecting cars, buying cars, or financing cars.

Depending on the details of the question, I usually suggest some places to look for inexpensive cars, such as the local newspaper classifieds, free "auto trader" magazines at the supermarket, online at craigslist.com and eBay, and local consignment lots.

I suggest staying away from independent used car lots, especially "buy here, pay here" lots until they have enough experience to recognize the potential pitfalls.

I also stress the importance of test driving, not taking a seller's word about a car's condition, and getting a qualifed mechanic's inspection. I point out that used cars are generally sold "as-is" and that there is usually very little recourse if problems are found after the sale, even if purchased from a large dealer.

First time buyers generally have no established credit history, so getting a loan can be a problem. Most such buyers get a family member to co-sign the loan. I then point out the importance of making payments on schedule and not defaulting on the loan because building a good credit history is very important to their financial future.