Buying Cars

Just some advice for my children, where they can refer to it, as needed:

Buying a new car is a daunting task, but nothing compared to buying a used one!  So this is to address a used ones, since like me, my children should be less likely to buy a new one for a great many years!

First off Consumer Reports has a running log of the 10 most recommended used cars to consider, based on consumer responses.  In no particular order currently:

• 1989 - 2002 Geo Prizm  (this is re-badged as a Toyota Corolla, Chevy Nova and Chevy Vibe - so any of these three would be fine as well, since they are a Geo Prizm!).  Expect 35 - 40 mpg!
• 1990 - todate Subaru wagon (this is the Toyota AllTrac model through 1992)
• 1975 - 1985 Mercedes 300D/300TD (these are diesel models and finicky but well respected!)
• 1976 - todate Honda Accord
• 1983 - 1990 BMW E30
• 1987 - 2001 Jeep Cherokee (note this is NOT the Grand model, it is the one with the 6 cylinder inline engine!)
• Toyota 4Runner, (this is the old model and although well thought of, can be costly for repairs!)

So, you have found one of these or another car, now what?

Do a search on the internet for the Year, Make and Model of car you are considering and print out a list of vehicle recalls, if the car is legit, then ;there will be a record of the vehicle having had this work done to it.

Look up its value on the internet on Kelley's Blue Book, or similar and decide if you can afford it.  Well read on just in case:

1.  Most cars build after 1990 can be reasonably expected to live to 300,000 miles and then expect tremendous cash investment to maintain from that point onward.  How many miles differences is there between this number and the mileage on your candidate?  Divide the difference by 12,000 and that number is the possible number of years before total replacement is guaranteed.

2.  Most cars build after 1970 came with aluminium heads and iron blocks.  This means that you will get to have a head gasket replacement every 150,000 miles.  Figure $2,000 for this at a shop.  How many miles does your candidate have?  Ask if it has had a head gasket replacement and how many miles ago.  If the car is a Subaru you may have to do this every 30,000 miles!  A real gamble on the Subarus.....

3.  Take the car to a local shop and ask them to do a condition and repair proposal.  Most shops will change you between $80 and $200 depending whom you ask, the model of car and where you live.

4.  Consider first year ownership expenses as being tires, brakes, air conditioning service, flushing the radiator, etc.

5.  If the tires are new, expect them to be hiding a bad front end on the vehicle.

6.  Most vehicles are front wheel drive, so listen closely for any rumbles or steering slop in the front end.

7.  Watch for smoke in your rear view mirror as you are accelerating from a stop.  Don't buy.

8.  Look out for a recent retitling of the vehicle, the registration would show how old the prior title was.  If recent then you are looking at a car which probably was wrecked, titled in a state which does not track this and then re-titled back in the home state.  This is particularly  a problem with used car dealerships.  Walk away.

9.  Look out for a car sold by a dealership but advertised as a private sale - something is wrong, so just walk away.

10.  Another scam is someone buying a car from party X, cleaning it up to look pretty and then reselling it either with the title from the original owner or with a new transfer.  No matter the story, just walk away, they are lying....

11.  Look for signs of an accident - front paint is not faded, rest of car is; front paint is shiny, rest of car is dull; look under the hood noting any painted numbers on the body parts or manufacturer labels left on; look for mis-matched bumpers; have a friend follow you on the test drive to see if the wheels are aligned and tracking together straight.  Just walk away if any of this is true.

12.  So, you have run down this list, you have an idea of repair costs, now what?  Well, take blue book value, subtract repair costs, and make an offer.

Okay, so you now have a car.  Now what?

Figure $50 to $100 per month in repair costs on the car and bank this amount so that you will have enough to keep the wheels rolling through time.  Of course, I am assuming you still have your $550 in savings in the first place as your extreme emergency fund....  And no, a car is not an extreme emergency - it is a convenience.

Good luck and happy shopping!