Automobile

How To Buy A Used Car For Less

There are two basic ways to buy a used car cheap, and one good reason: To save money. It isn't just that they cost less to buy initially. The research shows a four-year-old car can cost 40% less over its lifetime. That's including the costs of gas, oil, repairs, insurance - everything. This is why almost half of the millionaires in the United States buy used cars, according to Thomas Stanley and William Danko, authors of "The Millionaire Next Door."
Buy The Right Used Car
The first approach to buying a used car for less is to look for the cheapest "type" of car for your purposes. Some cars just cost more than others, both to buy and to operate, so look for the lowest-cost one that will do what you need. In other words, whatever your negotiating skill, a four-year-old Jeep Wrangler is still going to cost more to buy and run than a four-year-old Ford Escort. So if you don't need the four-wheel drive or space of the former, consider the latter.
Here are some of the factors to consider when looking at the overall cost of a vehicle:
- Price. You can look in one of the popular auto "blue-books" or price guides to see what used cars are selling for. The accuracy of these may be suspect, but they do give you a good idea of the relative values, so you can compare various models.
- Repair costs. At a public library you can find a copy of the Consumer Reports auto edition. They have ratings for all the major systems and parts of different models, and usually an average annual repair cost for them as well.
- Mileage. You can ask an owner about the mileage he or she gets, and try to gauge their honesty. Alternately, there are websites like fueleconomy.gov where you can find fuel economy figures for used cars. If you drive 20,000 miles per year, the difference between 20 miles-per-gallon versus 34 MPG is an extra 412 gallons per year, or $1,240 at $3 per gallon.
- Insurance. Some cars cost more to insure. Ask your insurance agent about the cars you...

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