ALT-1 Ways to own the best used Car
Purchasing a new car can put fear into the average consumer. Sticker shock at the dealer is the main cause of this; with the average price of a brand new car being in the $28,000 range. Yes, $28,000...and that is BEFORE tax and any interest. So for the average middle-class consumer, that's about one half of a year's salary. In order to afford a new car you'll have to finance it over 48, 60 or more recently popular 72 month terms.
And we all know that cars depreciate very quickly, namely domestic-made cars.
That new car today, with a total obligation of let's say $35,000 after tax will be worth approximately $7,000-8,000 by the time it is paid off assuming you have a 60-month term. Seems hardly worth it to most.
Your other alternative, and a very wise one, would be to purchase a used vehicle.
So what...it may have a couple of scratches that are hardly noticeable. The odometer may read 100,000 miles. Ultimately it is the very same car that cost someone a lot of money initially. But you can own it for a fraction of the price.
Buying a used car takes a little more knowledge than a new one. Chances are you won't get that fantastic bumper-to-bumper warranty, even if you get a warranty at all. You will want to educate yourself on which used cars are dependable, cheaper to maintain, and all around good value for the money. Here's a few cars that have statistically shown themselves to be a good buy:
1. Toyota Camry. These cars have proven themselves year after year to be of superior quality to almost any other. Maintenance costs are very low, but keep in mind some parts can be quite dear to replace. Engines in Camrys will on average run to well over 300,000 miles without turning a wrench to them. The cost of a mid to late 90's Camry will likely be higher than other cars the same age, but remember, you get what you pay for.
PROS: superb engine quality, long lasting parts, roominess, good resale value.CONS: suspensions wear a little faster than other cars, higher price tag.CONCLUSION: Spend the extra and save the headaches.
2. Honda Accord. Once again, Japanese quality seems to shine through for the Accord. They are reliable, excellent on fuel and are quite peppy for their size. Find one in the upper 90's or early 2000's and you can't go wrong. Price wise, about the same as a Camry; but like its competitor maintenance costs are very respectable.
PROS: reliability, fuel economy, good resale valueCONS: higher price tag, faulty wiring in some modelsCONCLUSION: A great value for the money.
3. Ford Focus. This is one of Ford's "world" cars; meaning it is sold in many parts of the world. There is plenty of room in a Focus, more than you would think just by looking at it from the outside. An early model Focus will run you about $3,000-5,000 or so, depending on the year and options available. It might be wise to avoid the primary year (2000) and try to find one from 2001 and up.
PROS: inexpensive, roomy, cheap to fix, comfortable.CONS: maintenance a little more frequent, bad wheel bearings, lack of horsepower.CONCLUSION: Likely the best bang for your buck price wise.
4. Ford Crown Victoria. If a mid-size or compact just don't have enough room for your family, then consider one of these. They are a very rugged full sized sedan. Millions of taxi drivers and police departments choose these for a reason! You'll be paying a bit more at the pump to drive one, but for an eight cylinder engine the mileage isn't all that bad. The Crown Vic's price range is attractive for what you get, and you get a LOT of car for the money. Best models to choose from: 1998 and up.
PROS: large car room, comfortable, smooth ride, great highway cruiser.CONS: fuel economy, dated styling, handles like a large car.CONCLUSION: A good choice for bigger families.
5. Volkswagen Jetta. For a compact sedan, Jettas have a solid feel to them. The doors are heavier than any other comparable sedan giving you a higher comfort level of safety. The interior panels and trim are quality made. Also with the Jetta comes available engine choices: 2.0L gas, 1.8L turbo gas and 1.9L turbo diesel. You can expect the best fuel economy out of a turbo diesel; VW claims 600 miles per tank. And they're pretty much bang on. Even the gasoline-powered engines will fetch you nearly 450 miles if driven easy. Maintenance is less than average. Go with a 2000-2003 model.
PROS: solid car, excellent fuel economy, reliable engine, good resale valueCONS: rear seat leg/head room limited, faulty accessory wiring, brake repairs more frequent.CONCLUSION: May not be the best choice for a family of any more than 3, but well worth the money for a single person or a couple.
Now for the vehicles to avoid:
1. Chevrolet Cavalier/Pontiac Sunfire. General Motors' plan for these vehicles was to mass-produce as many as possible, build them cheaply, sell them cheaply to provide new cars to consumers for around the $10,000 price range. And they succeeded. But as mentioned before, they were built cheaply and many parts on them do not last long. Cranking out a few hundred thousand of these cars per year might not have been the best idea...you can't build quality vehicles in a hurry, nor will it be healthy for its resale value. 2005 was the last model year for the J-body Cavalier/Sunfire, and just 2 years later you'll be able to find one for about 65% of its original value. If you are in the market for a very cheap late model used car, this is it. If you want one that is problem free, steer very clear of them. Key faults: electrical system, notorious for faulty head gaskets, poor braking system.
2. Pontiac Grand Am. Essentially a slightly larger, upscale version of a J-body vehicle, the Grand Am was a very good selling car through its lifespan. But even as people lined up to buy them, they were turning around and replacing intake manifold gaskets on them. Many owners of the Grand Am even petitioned to GM about this problem...it occurred in well over 70% of models in the 1999-2001 range, and commonly in the 50,000 to 70,000 mile range. General Motors never did satisfy the owners' wishes by recalling the vehicles. Key faults: intake manifold gaskets, poor quality interior trim, high frequency of non-routine maintenance.
3. Chrysler/Dodge Intrepid. Like the Cavalier, Intrepids were designed to sell millions of copies at a lower price to attract buyers. For a fair sized car they were priced very competitively; however any money you saved would more than likely have gone into future maintenance. It's a large sized car with less than acceptable build quality. Key faults: transmission problems, head gaskets, accelerated rusting, low quality front end parts.
Regardless of what you choose, try to determine what maintenance has already been done on the car before you make your decision. Ask if the timing belt (if equipped) has been changed, has the transmission had problems or is it in need of replacing, what are the brakes like etc. Do a little research online and find out the typical problems for a car you have in mind. An educated consumer is far less likely to buy a lemon!
