Removing that Lemony Old Car Smell
Used car buyers often struggle to balance the benefits of saving money with the risk of buying a lemon. To lessen the risk, a growing number of dealers are certifying their used cars. According to an article in the 6/11 Chicago Tribune, half of all used cars sold today carry the certification stamp—up from one in three in 2002. Such cars typically have been thoroughly inspected and come with an extended warranty. However, certified cars cost from $500 to $2,000 more than non-certified cars, depending on mileage, and there's no standard for what "certified" really means.
Some tips: look for vehicles that are certified by the manufacturer rather than an independent dealer and be sure you understand the terms of the warranty (what's covered and where can it be serviced for warranty-related repairs?).
A recent MarketWatch.com article strongly recommended buying the vehicle's history report as well, which indicates whether the car has a clean title, has ever been in an accident, and has been maintained. Carfax.com and AutoCheck.com offer a single report for $20, or 30-60 days of unlimited reports for $25.
Matt's View
When trying to decide what type of car to buy, another great source of information is Edmunds.com. Click here to see the organization's "Used Car Best Bets" and its analysis of which cars offer the "Lowest True Cost to Own."
This article filed in: Spending
Managing Money by The Book
- "To keep me from becoming conceited because of these surpassingly great revelations, there was given me a thorn in my flesh, a messenger of Satan, to torment me. Three times I pleaded with the Lord to take it away from me. But he said to me, 'My grace is sufficient for you, for my power is made perfect in weakness.'" - 2 Corinthians 12:7-9
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