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Buying a Used Car Successfully

Buying a Used Car Successfully Purchasing a pre-owned vehicle is currently a popular option for savvy buyers. It’s the cost-effective solution and can be a great option whether you’re looking to upgrade or buying your first vehicle. The reduction in price means that many people are able to afford a much more expensive model of vehicle than if they were buying new. This is because a new car begins to depreciate the minute it is driven away from the dealer’s lot, and the greatest reduction in price occurs between three and five years of ownership. If you chose a used car between three and five years old, you’re guaranteed to have a functional and high quality vehicle for a fraction of the retail price. Setting Your Budget and Choosing a Vehicle Before you start browsing, it’s best to set your budget and work out how much you have to spend. If you’re selling a current car, make sure you know how much it’s worth and whether the sale of it will cov...

The Dumbest Way to Buy a New Car

Buying a new car is one of the biggest purchases many people ever make. But even for such a high-priced item, you should steer clear of what's becoming an increasingly popular way that many car buyers are financing their vehicles. The scary trend in auto financing Strapped for cash, more car buyers are taking on long-term loans to buy new vehicles. As a report in The Wall Street Journal discussed earlier this month, the average term for car loans late last year rose to a record-high 65 months. The proportion of loans ranging from six to seven years in length has grown by more than 50% since 2008, and some lenders are even offering 97-month car loans -- forcing you to make car payments for more than eight years . Ford Focus. Photo source: Ford Motor Company. The reason car buyers are taking on such long loans is pretty clear: Longer loans mean lower payments. With auto prices on the rise and even used-car prices remaining strong, buyers have little bar...

Trouble Finding a New Car? Shortages Begin to Appear

Taz Harvey had only one Sentra for sale at his dealership. Ford Motor Co. F +1.39% launched U.S. production last week of the auto maker's hot-selling Fusion sedan at a factory in Michigan, a move that highlights a broader problem for auto makers: They are short of the cars U.S. consumers want to buy. At Dublin Nissan in Dublin, Calif., owner Taz Harvey started August with one Sentra on his lot. The car was redesigned for 2013 and sales have since soared with its improved fuel economy luring shoppers. "I sell five or six a month and normally have 15 to 20 in stock," Mr. Harvey lamented. It is a similar story for Mike Rouen in Woodville, Ohio. His Chrysler Dodge Jeep store outside of Toledo has a half dozen Jeep Wranglers and about the same number of Grand Cherokees. "I can sell more than that in a month, and it's tough. We're having a hard time getting enough Jeeps," he said. On Tuesday auto makers are expected to ...

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