Insurance for imported cars

The good news is that you will always be able to find insurance for an unofficial import, somewhere. Such cars are more common that you might think; the Eunos Roadster, a type of upmarket Mazda MX-5, was never sold here but there are thousands on UK roads nonetheless, imported from their native Japan. Indeed Japan is where many cars imported into the UK start life, because Japan is a major car-market where they also drive on the left.
There are two main types of import:
The Grey Import: Vehicles that are not built to European standard and are not EU approved. They are usually second-hand cars and you will have to shop around. For common imports, such as the Eunos, it should be fairly easy, as a market has been established and they are a known quantity being almost identical to the MX-5. For more obscure cars, insurers do not know what they are taking on, and will charge accordingly or even refuse to offer cover. Even if they do quote, they may also demand detailed information on the vehicle. If you are thinking about buying such a car, get a quote beforehand.
Parallel Imports: These are vehicles that are right hand drive and purchased outside of the UK. However, they are built to EU Type Approval, and compatible with UK specifications. In addition, parallel imports are new cars imported from Europe and should be far easier to insure than grey imports.
Generally speaking, you should expect to pay a higher premium than a standard car bought in the UK. In some cases the cost of the inflated premium, plus the cost of buying and importing a car from outside the UK, can result in you not making any savings; buying a UK car in the first place might have made more sense…

Fun, fast and frugal for £15k

* Name: Yiorgos
* Age: 23
* Lives: Harrow, London
* Job: Advertising account executive
* Current car: VW Golf GTi 1.8T
* Annual mileage: 22k



The problem
Yiorgos Hadjiandrea lives and works in London but every weekend makes a 400-mile round-trip to Harrogate, Yorkshire, to visit his folks. He currently uses his VW Golf GTi for the commute. It’s the 1.8-litre turbocharged model but Yiorgos’ heavy right foot means he’s only getting around 29mpg on the motorway. And with current fuel prices the way they are that means he’s spending £450 a month on unleaded. It’s a habit he can ill-afford. As a young lad living in London, Yiorgos has got a lot more to spend his hard-earned cash on so he’s come to us for help.
What's he got to spend?
With the sale of his own Golf and a bit of cash in the bank, Yiorgos has budgeted on spending £15,000 for his next set of wheels. He’s looking at used but wants the newest car his money can get.
* Setting your budget

What he wants
Audi TT (Image © Audi)
Yiorgos likes the Audi TT but with no diesel option he won't slash his fuel bills
Yiorgos is out to make an impression and he isn’t prepared to sacrifice performance and style for the sake of economy. This much is evident when he tells us he’s currently considering either an Audi TT or a BMW 325i coupe. Buy any of these two cars and Yiorgos might as well kiss goodbye to even more cash every month. Neither will reduce his astronomical fuel bill. A dramatic rethink is needed, although it helps that we know he wants something flash, sporting, fairly brisk and German. He’s not fussy then.
What we suggest
Given his crazy weekend mileage and desire to reduce his fuel bills there’s really only one choice for Yiorgos and that’s to go diesel. Either that or take the train. However, choosing a diesel isn’t the compromise it once was. These days modern diesel engines are refined and fast and most manufacturers now include at least one sporting diesel choice in their range.

* A-Z of buying a used car

The saloon choice: BMW 330d
BMW 330d (Image © BMW)
The BMW 330d offers mighty performance and excellent economy
What's good about it? What isn’t? For £15k Yiorgos will be looking at the previous-generation BMW 3-Series, which isn’t as bad as it sounds. Far from it, in fact. Arguably he will be getting a prettier car than the current 3-Series and, although it isn’t as razor-sharp as the new model, the 330d will still entertain like a clown at a kids’ party. The agile chassis is key to this car and, once you add in the rear-wheel-drive set-up, the inch-perfect steering and the superb body control, you’ve got one hell of a car. On top of this, the 3-Series’ cabin is sturdy and the reliability is strong.
The oily bits
The 3.0-litre turbodiesel is an incredibly flexible unit, with 204bhp and 302lb ft of shove. Police forces up and down the country swear by this engine - and it isn’t hard to see why; 60mph from rest takes around seven seconds and the top speed is a very-illegal 151mph. But the best bit of all? Yiorgos can put his foot down safe in the knowledge that he’ll be pulling in an average of 43.5mpg on the combined cycle, or mid-thirties when he’s in a real hurry.
What isn't so good?
BMW 330d interior (Image © BMW)
Be wary of cars with automatic gearboxes because economy can suffer greatly.
If you’re after a 330d with an auto gearbox be advised that fuel economy can permanently drop to the mid-thirties - or worse when you cane it. Other problems to look out for include the 330d’s rear brakes discs which wear out quickly. Also run your hands over the rear tyres because the 330d can go through rubber at an incredible rate, especially if the previous owner enjoyed putting his foot down around roundabouts. When you’re on the test drive listen out for anything unusual.
What's around for £15k?
There’s heaps of choice at this money. Prices start from about £6,000 for a high-miler but for £15k Yiorgos could get a 2003 03-reg 330d Sport with 54,000 miles and a full service history, like the one we found in the classifieds. An approved used car from a dealer will cost around £2,000 more and should come with a warranty and full inspection. As for insurance, Insurancewide.com quoted Yiorgos £2,142 for a year's cover.

* Used 330ds for around £15k
* New BMW 330d roadtest
* Get an insurance quote

The convertible choice: Audi A4 Cabriolet 2.5 TDI
Audi A4 Cabriolet (Image © Audi)
The Audi A4 Cabriolet is the classy choice, with a zippy electric roof and a first-rate cabin
The 330d may be the sporty driver’s choice but for those who care more for image then little beats the Audi A4 Cabriolet. On balmy summer nights Yiorgos could drop the hood – electrically, of course - settle into the comfy seats and cruise to Yorkshire in style. The swish Audi is also the car most likely to earn Yiorgos a second glance from passers by and, if he’s really lucky, there’s room for three of them in the wonderfully-appointed cabin. It’s also fully-loaded in there with leather, climate control and, depending on the model, satellite navigation. Enough luxuries to allow him and his companions to travel in style.
The oily bits
There’s a huge choice of engines available with the A4 Cab but for Yiorgos’ purposes we’re recommending the smooth 163bhp 2.5-litre V6 TDI turbodiesel. This engine isn’t available any more, replaced instead by a 2.0-litre TDI. The 2.5 TDI will get from 0-60mph in 9.9secs and on to a top speed of 140mph. Clearly, it won’t blow Yiorgos’ socks off, especially when you compare it to the BMW’s blistering sprint times, but it’s refined and smooth – perfect for cruising.
What isn't so good?
Audi A4 Cab interior (Image © Audi)
The Audi A4 Cabriolet has one of the smartest interiors of any mainstream car on sale but there are still niggles you should look for
Sit in the Audi’s robust cabin and you’d be forgiven for thinking the car was bomb-proof. But even Audis suffer from niggles so it’s vital that you push, prod and pull every button and switch in the cabin to check that things are working as they should. Some A4 Cabs have been known to suffer from electrical faults, such as the hood failing to operate, so put the roof up and down a few times. As with all used car purchases, try and bring a mechanic along as the ignition coils are prone to burning out. The bills aren’t horrendous if this happens, but you’ll usually need to replace all four and it can be a pain if your car breaks down. Also watch the driver’s footrest because it can come unstuck and rattle around in the footwell.

* How to avoid a dud deal

What's around for £15k?
At £15k there isn’t much around. Residuals for the diesel are very strong and the cheapest 2.5 TDI we could find in the classifieds was a 2002 52-reg model with 75,000 miles for £15,995. Haggle, though, and Yiorgos shouldn’t have any trouble slashing at least £500 off this. A dealer car will be well out of Yiorgos’ budget. The Audi may be slightly out of his budget, but the Audi's insurance is the cheapest, with a quote of £1,760 from Insurancewide.com.

* Used A4 Cabriolets for around £15k
* Audi A4 Cabriolet roadtest
* Get an insurance quote

The coupé choice: Mercedes C-Class Sports Coupé
Mercedes C-Class Sports Coupé
The C-Class Sports Coupé isn't the best to drive but it's spacious and well-built
So why should Yiorgos choose the Sports Coupé then? Well there’s that Mercedes badge for a start, which tends to lend a degree of sophistication to the car in question, but the Sports Coupé is also surprisingly spacious inside. It’s certainly not as cramped as most coupés, with a high roofline and a big boot. These things probably aren’t going to set Yiorgos’ fire alight, though. What might just tempt him are the generous equipment levels, with climate control, cruise control and electric front windows as standard, and alloy wheels, leather seats and multi-disc CD players on higher-spec models. However, be wary of poorly-specified older cars, some of which miss out on air-con.
The oily bits
Mercedes’ diesel engines are among the best on the market and with the Sports Coupé buyers get a choice of two, either the C200 CDI or the C220 CDI. Both use the same 2.1-litre turbodiesel engine in either 122bhp or 150bhp form. For Yiorgos, we’re recommending the 150bhp C220 CDI. This will give him fairly decent performance – 0-62mph in 10.3secs and a 139mph top speed – as well as 42.8mpg on the combined cycle.
What isn't so good?
Mercedes Sports Coupé interior (Image © Mercedes)
It may be a Mercedes but the quality might not be as good as you expect. Give all the buttons inside a good prod
Mechanically, the Sports Coupé is sound but Mercedes build quality has slipped in recent years and there are a few issues to be aware of. Get a mechanic to check the turbo’s oil seals as these can cause problems and, while he’s under the bonnet, get him to inspect the glow plugs. Basically, break these and you could be facing a bill for several thousand quid. Again, check all the switches work and pay close attention to the interior quality as it isn’t as robust as you might think. To drive, the Sports Coupé won’t win any awards but on a long journey its refinement and smoothness will be hard to resist. But before you buy any car, take it for a good drive to see if you get on with the driving experience.

* How to take a test drive

What's around for £15k?
Yiorgos won’t even have to spend this much as most Sports Coupés are less than £15k in the classifieds. In fact, for a grand less he can get himself behind the wheel of a 2003 53-reg C220 CDI Sport, with 50,000 miles on the clock and all the mod-cons. Bargain. Insurance, courtesy of Insurancewide.com, came in at £1,883, making the Merc the second most expensive to cover.

* Used C220 CDIs for around £15k
* Get an insurance quote

If we were him…
Audi A4 Cabriolet (Image © Audi)
The Audi A4 Cab is our choice for its cool styling, fun image and good fuel economy
Yiorgos’ requirements are fairly restrictive. He wants a car that’s fun but also economical, something that will impress his friends but not leave him broke at the end of every month. It’s for this reason that we recommend he goes for the Audi. With its sexy looks, strong engine and excellent economy it ticks all the right boxes and will make Yiorgos stand out, whether he happens to be commuting on the M1 or cruising the boulevards of Cannes.

* Setting your budget
* A-Z of buying a used car
* New BMW 330d roadtest
* How to avoid a dud
* Audi A4 Cabriolet roadtest
* How to take a test drive
* Used car homepage

Are you thinking about choosing a new car? If so, our motoring mentor could help with a detailed guide like the one above.

Buying an extended warranty

All new cars come with original warranty provided by a car manufacturer. This original warranty covers most of the vehicle components for a certain period - most commonly, three years or 36,000 miles. After the original warranty expires, you will have to pay for all repairs out of your pocket. This is when an extended warranty may be helpful. An extended warranty is basically a service contract between the car owner and the warranty company. According to this contract, the warranty company will pay for the repairs covered by the contract for a specific period of time. It's something like health insurance for your car. With an extended warranty you are protecting yourself from unexpected repair costs.
For instance, you bought a used car that is out of original warranty and the transmission fails. If you don't have an extended warranty you will have to pay out of from your pocket, transmission repair may cost you more than a couple thousand dollars. If you have a good extended warranty, it would cover most of the repair costs - in some cases you would only have to pay a diagnostic fee, or a deductible, depending on the type of warranty you have.
However, not all cars are qualified for an extended warranty and not everything is covered. Items like belts, brakes, tires and other wearable parts are usually not covered. Also, you still have to maintain your car properly and keep all the receipts.

Legal aspects of buying a car

Many questions may come up when buying a used car such as how to transfer the ownership, how to write a bill of sales, how to register the car from another state or province, what papers are required to register the vehicle, the owner's and buyer's responsibilities, etc. Because each province or state may have different laws and requirements for the sales transaction of the car, it is best to call your local vehicle registration office or Department of Motor Vehicles, or legal authorities.

Negotiating the deal

Often when you use a proper negotiation technique you can get a reasonable discount. Here are a few proven tips:
1. Start negotiating from the beginning. Try to get a discount from the very first time you phone about the car. If they ask for $15,000, ask them if it's worth to come if the $14,000 is your bottom line, considering that you are the real buyer. Usually they won't say "No", which means that when you come, you can start negotiating down from $14,000, not from $15,000
2. Negotiate the total price. Dealers always like to add some additional fees on the top of the sticker price. Ask to calculate a total price "on the road" and use it for a negotiation.
3. Make a lower offer. Don't be afraid to make a lower offer. If they are asking $15,000, offer $13,000. If the salesperson believes you will really buy a car, he/she will go down in price, and maybe you will then get the car for $13,800 or thereabouts.
4. Be ready to leave if you feel any pressure or if you have any hesitations about the car - there are so many other cars available. You don't have to decide immediately. Do not give a deposit or sign anything until you are absolutely satisfied with the car and conditions.
5. Nothing works better than competition. Let's say you have two cars on your list that you're interested in. Show it to the salesperson and say you will buy a car from whomever gives you the better price. For example, if one of the salespersons offers you a $500 discount, phone to another dealer on your list and ask them if they can match it.
6. Whatever is promised by a dealer, ask to confirm in writing. Negotiate all the details of the deal. If the dealer promises to install new tires, make sure you agree on what kind of tires - cheapest available or of a well known brand like Michelin or Goodyear. If there is some kind of warranty that comes with the car, make sure you understand all terms and condition. If the dealer promises to show you all service records, make sure you check them before paying for a car.

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?

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.

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.

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.

What mileage is OK for a used car

n 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.

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 - automobile, motorcycle, and umbrella insurance in California and automobile insurance in Arizona, Illinois, Indiana, Nevada, Ohio, Oregon, Texas, Florida, Georgia, Pennsylvania, Washington, Colorado, Minnesota, Missouri, New Jersey, Wisconsin and New York. Online insurance quote.

Insurance.com - compare auto insurance quotes from different companies.

For Canada:
TD Insurance
RBC Insurance
PC Financial Insurance
Kanetix

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.

What type of used car will fit into my price range?

Let's take a look at some prices:
$10,000-$18,000 - 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 $5000-$9000 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 $1000-$2000 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 cars or trucks in this price range. However, be prepared to spend much more money to keep such vehicle running.
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.

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.

Decide how much you can afford

Set yourself a firm limit of how much money you want and can afford to pay for a car. The process of buying a used car can be time-consuming and stressful and it might be difficult to resist the urge to buy more expensive vehicle, especially when higher total price is hidden under "low" monthly payments. Often dealers could try to push you into buying more expensive vehicle to increase their commision. In fact, this is very common situation when people rush into buying a car or a truck only to realize later that they cannot afford paying for it. Thousands of people are searching the Internet for an answer to "How to get out of a car deal?" You want to buy something that you can afford, something that will not put excessive financial strain on your family budget, so you need to set yourself a firm limit.

Car value and price

Don't look for cheapest car. When it comes to used cars, "best deal" doesn't mean the cheapest one. Your goal is to look for a car in good condition for reasonable price. If you choosing between relatively cheap car that might have an accident in the past or was poorly maintained, needs some repair, etc. and more expensive one that is in excellent condition, I'd without a doubt choose the more expensive one. You will simply save on repairs and will have less troubles driving it. Don't think they sell it cheap because they don't know the price or they simply want to clear their inventory. If they sell it cheap, definitely there is something wrong with it. Remember, proper price for a certain used vehicle is not the one indicated in blue or black book - they give you just an average price. The actual vehicle value big time depends on a car condition. Two cars may only look the same. One may have been maintained so poorly and the engine won't last long after you buy it. Previous owner of another vehicle may have been religious about maintenance, was using only synthetic oil, has done the rustproof and so on. Without a doubt, I'd rather pay $2000 more for this second car just to have peace of mind driving it.
So, how to determine how much you will have to pay for a certain model?
Just to show you as an example, I search Ontario used cars for sale website Autotrader.ca for a three years old Honda Accord. The search result gives me more than 200 vehicles with the price ranging from 12,000 to 22,000 CAD. To be realistic, I know that for 12,000 I will not be able to buy something really good. 22,000 CAD seems to me too high. But there are quite a few cars for 17,000 - 18,000 price range - this looks more realistic to me. I also know that most new car dealers will be able to give me a discount from 1,000 to 3,000 CAD if I use proper negotiation strategy (read below). So, in our case with three years old Honda Accord, I'd probably will be able to get the one in a good condition for 15,000 - 16,000 CAD depending on mileage, options, etc. You can use the same strategy everywhere; whether is Miami Florida or Winnipeg Canada.

Taking a risk out of used car buying process

First, be prepared. Do as much research as you can. Read reviews, consumer reports, ask colleagues and friends, compare options, gather gas consumption data on the make and model you're interested in. Examine reliability ratings. Try to determine maintenance costs and upkeep, etc. Your goal should be to narrow your search to one or two models. Why? Because if you just enter a dealership without knowing what you want, chances are more likely than not that you won't be happy with your purchase. Later you may find out that it's simply not exactly what you wanted or what you can afford. Someone I know bought a used BMW wagon for quite a reasonable price. When he went for servicing, they discovered that the rear shock absorber was leaking. The price for the part alone was close to $1000! Finally, he sold his BMW and bought a used Camry that proved less expensive to maintain.
Another purpose to narrow your choice down to only one or two models is because when you test-drive a few different cars of the same model, it will be much easier for you to compare their condition and pick the best one. Recognizing a transmission problem during your test drive would be easier to do if you were to try a few vehicles of the same model instead of becoming confused by testing out different models.

Second, without a doubt, you should check a car's history records. This will help you to eliminate half of the vehicles from your list with potential problems. Vehicles that have been flooded or restored after serious accidents, those with rolled back odometers, heavily abused vehicles (e.g., ex-rentals), those with outstanding liens, etc., can be eliminated after simply checking the history record of the vehicle. In fact, it is not even a good idea to look into a car until you check its history.

Third, Don't buy based on what you've been told because it may not always be the truth. Check out the car yourself very carefully. Ask a knowledgeable person who knows about cars to help you.

Fourth, Be extremely careful when doing the paperwork. For example, if you buy from a private owner, make sure there are no registered liens against the vehicle and that the person who signs the Bill of Sale is the actual owner of the car. Check with the Vehicle Registration Authorities to make sure the car has not been stolen.
If buying from a dealer, read the warranty policy and all the papers including the fine print very carefully. If it's a "Certified" used car, you'd be wise to check exactly what items were checked off and approved because sometimes the car might have a history of an accident in the past, come with a poorly maintained engine and still be Certifiable. Do not rely on a salesperson's verbal promises. Whatever is promised, get it in details in writing. Find out if the remaining original warranty will be transferred into your name. Different manufacturers have different warranty policies.

New or Used Car?

By purchasing a used car, you can save a lot of money. A new car depreciates quickly in the first few years and after 3 years, it is worth only about 60-70% of the original price. In fact, as soon as you leave the dealership, your new vehicle is suddenly worth $1000-$2000 less. When purchasing a new car you basically are paying for its fresh "new" aroma and warranty. Yet, buying a new car does not always mean the buyer will get perfection. A new car may come with problems associated with poor design or manufacturing defects that may have been already repaired during the warranty coverage period if it's a used car. The same is true for all kinds of recalls and service campaigns. Another advantage of buying a used car is that you could buy a loaded model with all the bells and whistles that you might not be able to afford had you bought a new car.
However, buying a used car is still a bit of a gamble - there is no guarantee that the car is accident-free, has real mileage, and was properly maintained. There may be some hidden problems like a worn out automatic transmission, or engine problems that may not have been obvious when you test-drove the car. So, next you must ask yourself: Will I save money when buying a used car? How do I eliminate the risk of potential problems and is this actually possible to do? Read on to find out more information.

Do's and Don'ts when finding a Used Car

Do Check a used car history report This does not give you a 100% warranty that the car is OK, but may save you some money if it will show you some bad records, for example, if the car was written off after an accident or has had an odometer rolled back.
Do ask someone knowledgeable to inspect the car for you; it may save you a lot of money.
Don't buy a car after a serious accident - especially following a frontal collision. You wouldn't believe how many possible problems may arise later as a result of an accident.
Don't buy a car as soon as you see it. Take your time, test drive the car as long as you can. For example, some problems may only be caught when the engine is cold while other problems may only be discovered when cruising at highway speeds, etc.
Don't base your decision on what you have been told. "One Owner, highway driven" in fact, may be an ex-rental, heavily abused vehicle.
Don't buy a car if you have reservations or hesitate for one reason or another…if you don't have a good 'gut' feeling about it. If the engine seems too noisy or works as if it is in rough shape and sounds heavy, the transmission shifts harshly, some works needs to be done, something seems to be wrong with the papers, etc. - move on.
Don't buy a car if it needs some "minor" repairs. Often this results in spending big bucks for repairs that never seem to end.
Don't buy a flooded car; it may look good and still be drivable but later a flooded car may develop many expensive to fix problems: corrosion, electrical, electronics, wheel bearings, transmission, etc.
Don't be rude to a salesperson at the dealership. Regardless of the many stereotypes we share, many salespersons are genuinely nice people. Be persistent but not rude; treat them well and they will be willing to help you...