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What type of used car will fit into my price range?
Let's take a look at some prices:
$8000-$12,000 US / $12,000-$18,000 CAD - This is the average minimum amount of money one would need to spend on a 'decent' car 3 to 4 years old. This would be a typical car (not a luxury car) sold from a new car dealership. They usually have, what would I recommend as a perfect choice, traded in one-owner certified vehicles that were sold new and serviced at the same dealership. Sometimes you may find such a car from a private owner. Usually such a car may last for another few years relatively trouble-free if properly maintained.

For $4000-$5000 US or $6,000-7,000 CAD, you may be able to find a 6 to 9 year old used car with relatively high mileage which still might be in good shape. However, it may take a lot more time to find a good condition used car in this price range. Typically, independent used car dealers sell cars within this price range.

For at least $1000-$2000 US, or $1500-$3000 Canadian, you may be able to buy something that can serve as simple transportation to get from point A to point B. More than likely it may be a car with high mileage sold by a private owner. Dealers usually do not spend time selling a car in this price range. However, be prepared to spend much more money on maintaining the car and keeping it drivable, if buying a car in this price range compared with buying a car for in one of the other price ranges discussed. To learn more about what kind of vehicle you can afford for your hard earned money, try to search the Car Sales websites where you can enter the maximum amount of money you intend on spending. Click to: Used cars for sale on the Internet. Don't forget that aside from the sticker price you may need to pay extra for taxes, registration and there may be other charges to consider.

Choosing the right car
I can tell you, you won't get a good deal if you just browse from dealer to dealer without knowing what kind of car you are looking for. The first step - You need to decide what exactly you want. Do you need simple transportation to drive to work and back? If so, a small Sedan would suit this purpose. Do you want a car to be very economical? If so, you would want to select a car with a small engine. Don't expect to find a V6 or V8 engine or 4WD truck if you are looking for something really affordable. Are icy roads common in your area? If this is the case, then you need a car with ABS. If you want to use your car to tow a trailer, then you will have to consider a car with more powerful engine. Once you've decided on what type of car is best suited for you or your family members, and you know what you want, check out the market, see what models are available, and see what fits into the price you can afford. Following this you will be able to narrow your search to just a few models. Then compare the reliability rating and read more reviews. Don't forget to check insurance rates, get the quote before buying a car. Follow this link for more tips: How to choose the right car for you.

Cost of insurance
The cost of insurance varies a lot depending on the make, year and model of the car, driver's experience and many other factors. I definitely recommend to get insurance quotes before buying a car.
Follow these links for auto insurance quotes:
For US:
GEICO.com Auto insurance quotes.
21st Century Insurance Company Auto insurance quotes for Arizona, California, Illinois, Indiana, Ohio and Texas residents only
For Canada:
TD Insurance
RBC Insurance
PC Financial Insurance
State Farm
Kanetix

What mileage is OK for a used car
In general, I would not recommend purchasing a car with a very high mileage, for example, 250,000 km (155,000 miles) and higher would be considered very high. However, "low mileage" does not necessarily mean it's going to be a "good car". Be aware of cars that may have undergone restoration after a serious accident or cars that haven't been property maintained, or cars that may have had their odometer rolled back - nowadays they can easily 'fix' even electronic odometers. Again, checking a car history records will certainly help to avoid those lemons with "fixed" odometer. When considering the 'mileage' count, it simply means that when choosing a car whether it has 60,000 or 80,000, it is not as important as the fact that it was well maintained and accident-free.

How old is not "too old"?
I would not recommend buying an old car even at "bargain" price; no matter how many new parts you put into it, it will be still an old car that will need more and more repair later. Simply scratch out from your list anything older than ten - twelve years. Perfect choice will be three - five years old car because the price is greatly reduced and you will still have few trouble-free years.
One important detail: 2000 is a model year, not the production year. The car produced in august 1999 may carry 2000 model year as well as the one produced in July of 2000. This is related to all cars and model years. To know exactly, look for the first registration date in the car history report.

Where to look for a car?
You may have already searched the Internet for a used car. The Internet is an effective tool you can use to find out what is on the market in terms of availability, production year and price. It will give you the most up-to-date information compared with automotive magazines. Follow this link to check List of Cars for sale websites.

Who sells used cars?
New Car Dealers, Used Car Dealers and Private Owners will have used cars or "re-sale" cars. Personally, I would suggest that the best buy for you would be to purchase a car that has been very well maintained (preferably at a dealership) and has never gone through an accident or other major problems. Most likely you'll be able to find such a car sold privately by the original owner or at a new car dealership where it was traded in. The price for a used vehicle is usually higher at a new car dealership. However, paying a higher price may provide you with all the service records for the car. Most likely, the previous owner may have taken the car specifically to the dealership because he/she felt it was maintained very well, instead of taking it somewhere else to be traded in. You're more likely to find a well maintained car through a dealership because previous owners have taken care of their car very well because they value it, and the dealership is more than likely to be particularly about the condition the car is in to ensure it has a high quality.
Now let's discuss other places to buy a used car. Independent used car dealers will offer used cars at a less expensive cost but more often than not, you'll find a cheaper car but it will have been less maintained. A word of advice: try to avoid dealing with curbsiders. Here's what happened to someone who contacted me and then went on his own to buy from a curbsider: A person contacted me and in an effort to save on taxes, arranged the deal as a private sale. Later the buyer checked the history and found the car was written off in a different State in the USA due to an accident and the mileage was noted to be a lot higher than the curbsider stated to him. After repeated attempts this person cannot even locate this "dealer".
On to the private owner… Quite often you can find a good car for a reasonable price from a private individual, and usually they will be more flexible in terms of price but keep in mind that they do not offer any warranties.
Making phone calls
It may be a good idea to take the time to make phone calls and enquire to confirm all vehicle information that is important to you: mileage, color, transmission, Air conditioning, ABS or for any other options that may be in your interest. You may find a car to suit your purpose but it may not have all the essentials you really need. For example, you may find a car without air conditioning (A/C) but it will meet your needs in all other aspects. Similarly, you may find a car that is a two-door but you have a family of four and it would be much more suitable if your purchase was a four-door. Who is the Owner? How long has she/he owned this car, and how many owners were there before of this same car?
Answers like: 'This is a friend of mine's car', or 'I bought it a couple of months ago' may indicate something suspicious. You need to deal with the actual vehicle owners and he/she has to sign the bill of sale. If one sells the car after just a few months, this may indicate that this car has a problem or the seller is in the 'curbsider' business. Did the car have any accidents, major repairs done? Where has it been serviced and are there any records available for you to review? Don't expect the seller to provide you with complete information. He/she may be unaware about previous accidents or other problems. Refer to the vehicle history report and the result of mechanical inspection. I wouldn't recommend buying a car after an accident or after a major repair, e.g., a re-built engine or transmission. Is the car drivable now? Does it have any problems or concerns that need to be solved? The car may not have valid license plates or insurance or have some mechanical problem at the time you are conducting your search. Therefore you won't be able to test-drive it. Here is the short list of questions to ask:
- When did you buy the car? How many previous owners? Current mileage?
- Any previous accidents? Major repairs? Any repair needed now?
- What's the mechanical condition? Any concerns?
- General condition of the car? Interior? Exterior?
- Any rust? Scratches? Any other damages?
- Where the car has been serviced? Are the service records available?
- What is the reason for selling the car?
- Any liens?



continue to part III