How to Avoid Buying a Lemon Used Car

Here are all the tips you will ever need to know to protect yourself from buying a lemon.

Instructions

1




DO YOUR HOMEWORK. Make sure when you buy a used car you do all of the research necessary. For example: You might have a good buying price, but how does the car rate in the cost of repairs?

2




HAVE A CHECKLIST. Have a checklist of pros and cons for each car you're interested in.

3




DO COMPARATIVE SHOPPING. Check the local paper, car dealers and the internet to see what the average price is.

4




CHECK THE KELLY BLUE BOOK VALUE. Kelly Blue Book is the official used car buying guide. See how the prices of local sellers compare with the Blue Book value. Don't forget, buying a car in areas were it snows a lot devalues the car. The salt erodes the paint and undercarriage.

5




CHECK YOUR CREDIT REPORT. Your score can and will affect your eligibility for lower percentage financing. If you go into a high-risk financing category, you're very likely to pay substantially more than the car is worth.

6




DON'T BUY ON EMOTION. Never, ever buy the car on your first visit to the dealer. Don't fall for all of the gimmicks they dealers pull: "It's the last one" or "If you leave now we won't give you that deal again." There is way too much competition out there. Don't regret buying a car on an impulse and risk seeing it for less somewhere else.

7




CHECK CARFAX. Carfax is a great resource for finding out if the car has been in accidents. Often the dealers won't disclose damage to you. The damage can substantially reduce the value of the car, and worse, dramatically reduce the safety of the passengers in an accident.

8




BUY AT THE END OF THE MONTH. Dealers will often cut better prices at the end of the month because they have to make quotas. This is also true for the end of the year.

9




BUY OR LEASE? If you're going to buy a used car, it will probably cost you the same to lease a new one. Leasing is really a term for glorified renting. If you lease a new car, you won't have all the headaches that come with buying a used car. Write a list of all the pros and cons. Here are some widely accepted rules about Buying vs. Leasing: Always BUY a used car. If you BUY a car, new or used, keep it for 10 years. If you want a new car every 4 years, then LEASE. In the long run, BUYING is always cheaper than leasing.

10




READ EVERYTHING VERY CAREFULLY. Make sure you read and understand everything very, very well. Don't worry about asking excessive questions. Who cares if you inconvenience the car salesman. It's their job!!! No is no such thing as a "Cooling Off Period" or "Return Period" when you buy a car. After you sign, that's it. There's no turning back.

11




BACKGROUND CHECK THE DEALER. Do a Google and Yahoo search to make sure that there aren't any negative blogs about the dealer. Also check with the local Better Business Bureau and Attorney General's Office. In most cases, you can check for free online. If the dealer has a bad reputation, don't risk it. Go somewhere else.

12




DON'T BUY EXTENDED WARRENTIES. They are a rip-off! Somehow whatever breaks on the car isn't covered by the warranty. This rule also goes for buying "certified cars." It's just an excuse for the dealer to charge $2000 more for the car. Believe me, they haven't put any more time and money into a "certified" car.