Buying a Used Vehicle in the Internet Age, Part II

At the end of Part I, I made the statement that when you’re searching for a used car or truck, your job is not to approve vehicles, it’s to eliminate them.

Why? Because most used cars come with little or no warranty. So before buying one, you need to have it inspected by a competent mechanic.  Such a check won’t guarantee a car that’s perfect, but it could reveal problems that you, as a layman, might not catch. But such inspections can cost $50-$150. You need to weed out any obvious “lemons” long before you reach that point or you'll quickly go broke paying inspection fees.

So….where do you find used vehicles and how do you eliminate the lemons?

One thing you need is a source of prospects that’s local.  It used to be that your town newspaper was the main place to go, but although you’ll still find ads there, the number has dropped considerably. So take a look at the internet.

Start with Craigslist.com. Since you can specify the locale you want to search, you can hunt for vehicles within a reasonably driving range. You can also specify the make, model and year you’re interested in, plus a price range.

First, though, check Craigslist’s information on avoiding scams. Believe me, a lot of scammers are out there. 

When I first started looking for “Mike” I ran into quite a few. There was, for example, the person who needed to sell their truck immediately--at a very cheap price--because they were being shipped out to Iraq. Interestingly, I found an ad for the exact same make, model and year of truck that had been posted a day earlier,  featuring the exact same language, except this time the owner was going to Dubai.  In both cases, the owner offered to “ship the vehicle from Dallas to the buyer’s location.” Since I was searching the Dallas/Fort Worth Craigslist, I couldn’t help but wonder why the vehicle needed to be “shipped" at all.

Of course, chances are that there is no such vehicle and this ad is being run on Craigslist all over the country, to lure buyers into sending money to the scammer. This is why Craigslist specifies that all offers to ship cars are fraudulent. 

In fact, you should never buy a used car you haven’t seen and driven. I don’t care how pretty the picture is, I don’t care how cheap the price is, I don’t care what kind of a “Must sell!” sob story the seller pitches you. Never buy a car you haven’t seen and driven. And had checked by your mechanic.

Another good source for ads is Autotrader.com. There, you specify make, model, a range of model years and a price range. You can also specify the maximum distance to the car or the zip code you want Autotrader to search.

Edmonds.com will let you specify a make and model, then tell you how many cars it has listed, broken down by model year.

So….you look, you see the kind of car you want, within your price range and close enough so that it won’t take a major road trip to reach it. Now it’s time to go check it out, right?

Wrong. First, run a report on the VIN.

VIN stands for Vehicle Identification Number. Each vehicle has its own individual VIN. You can find it near the lower part of the windshield on the driver’s side, either on a metal plate on the dashboard or etched into the windshield itself. 

Why check the VIN? Because it’s the second way to recognize a lemon, without spending the time or gas money to actually go see the car. 

Take the VIN and run it on AutoCheck. AutoCheck and CARFAX both sell reports that provide a lot—but not all—information about a vehicle’s history. How many owners has it had? How many repairs?  Has it been in a wreck? Was it a fleet or lease vehicle? Has any problem been reported with the title?

Why do I recommend AutoCheck over CARFAX? In a word, price. AutoCheck will give you a month’s worth of unlimited vehicle reports for about $45.  For the same price, CARFAX only gives you five reports. I found that I often wanted to check more than five VINS in a single hour’s worth of online searching. (BTW, if an ad doesn’t list the VIN, email or call the seller and ask for it. If they won’t provide it, cross that vehicle off your list.)

You do need to actually read these reports. Sometimes a dealer will provide one --“Look! Free VIN report with every car!”--and you’ll be tempted to just glance at it or not bother reading it at all. After all, if they’re willing to let you see it, it must be fine, right? 

Wrong. Read the report. Carefully. I was given one report by a used car dealer that showed a lot of parts replaced in the first few years of the vehicle’s life. A lot of parts. The dealer tried to convince me this was good, that “all those parts are now new.” But what kind of car needs a dozen major components replaced within the first 20,000 miles? In a word, a lemon. A vehicle either badly built or badly maintained. It’s entirely possible to ruin a new car or truck quite quickly. Run it too hard or too hot. Never replace the coolant, transmission fluid or the oil.  Make it tow weights or carry loads it wasn’t designed to handle. Result? A mechanic’s dream...and a buyer’s nightmare

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For that reason, AutoCheck is again, only a tool to eliminate vehicles from your search, not guarantee that they’re okay. So if the Autocheck report looks good, it’s on to the next step….go look at the vehicle. We’ll talk about that in Part III.

Buying A Used Vehicle In The Internet Age

Meet my recently-purchased "newer" vehicle, Mike, a 2006 Ford F-150.

My old van, Quartermain, hit the 275,000 miles mark late last year and I decided that it was time for something newer. He was still running reasonably well, but getting to the point where he'd soon be due for major mechanical work, and it made no sense to put thousands of dollars into a vehicle that had a market worth of less than $1000. Plus, I needed a truck.

I've always bought used vehicles, starting with my first $1,000 Datsun when I was 15.  But I'd had Quart for more than ten years and when I decided to start shopping, I found that the internet has brought a lot of changes to this particular chore, making things easier for buyers, sellers and, unfortunately, scammers. 

Well, it took some time and effort to find Mike, and I had to learn a lot. I thought I'd pass on what I already knew about buying a used vehicle, plus what I learned about car shopping on the internet.

First of all, why buy used?

In a word, money. 

A new car can lose 20-30% of its value the second you drive it off the dealer's lot. It's just the nature of the beast. A car a few years old with less than a 100,000 miles on it can easily be half the price of a comparable new car.

For example, Mike, before taxes and title, cost $8,900. A comparable new F-150 in my zip code costs $18,000 plus. Mike was four years old and had 70k miles on him when I made the deal. Because I bought him used, with, as my mechanic put it, just enough miles on him to be fully broken in, I saved $9,000+. Add in the fact that I was able to pay cash, avoiding interest on financing, and the savings are probably $10,000 plus.

Or to put it another way, I was able to afford a much better vehicle because I bought one used. Indeed, I was able to buy the vehicle I really needed, with some of the features I wanted as well,  because I bought used. 

Unless you've got enough money to buy whatever you want--in which case, why are you reading this blog?--the first job when buying any vehicle, new or used, it to decide what you can afford to pay and how much that will get you in terms of what you want and what you need. 

Sit down and figure it out. What do you need? How many passengers do you need to carry? Do you need a car that doesn't use much gas? Do you need a vehicle that can tow? Or carry cargo?  If so, how much?

Then list what you want. A/C? (In my part of Texas, that's a need.) Power door locks, windows, mirrors? Cloth seats? A GPS system? A lot of power? A certain paint color? A fancy sound system?

When you buy used, you often have to make compromises. That's just part of the deal. What you're willing to be flexible on is up to you.

In my case, I needed a truck, so I could carry round bales of hay, and it needed to be able to tow at least 5000 lbs. My small trailer, loaded with a full-sized horse, weighs 2500 lbs, but you never tow at the maximum, so I wanted double that capacity.  I didn't need power anything, other than steering and brakes, I could care less about a GPS or sound system and a three-passenger bench seat was fine. I didn't want to pay for more power than I needed, so a F 150,  Dodge 1500, Chevy Silverado or GMC Sierra would work, though smaller trucks like  an S-10 or Ranger might be a little underpowered.

I wanted a truck that was a nice color--green, burgundy, blue--that had a tow package, so I wouldn't have to buy one, and that had no more than 90,000 miles on it.  I also wanted some room behind the seat, so I could stow everything from groceries to pony harness.

Having made those two lists--needs and wants--you now need to get some idea of what all that will cost.


A good place to start is with Blue Book, www.bluebook.com.  This is the online version of the venerable price guide for both new and used cars. You can enter a type of vehicle--sedan, truck, van, mini van--or a specific car model and year, mileage and your zip code, plus a whole list of options and it will provide you with three possible prices. The first is the Trade In value of  the car you have in mind; in other words, how much you'd get for such a vehicle if you traded it in for a new car. The second is the Private Party price, or how much you might expect to pay for this model if you brought it from an owner. The third is the Retail or Dealer price or how much it's going to cost you to drive into a used car dealership and simply say "I want that."

This range will give you some idea of what you can afford, including what you might have to give up in the way of  "wants" to fit your budget.

Next, it's time to start shopping. But shopping for a good used vehicle is more a process of elimination than a matter of picking a winner. We'll talk about that in Part II.

Take Care When Using Craigslist...Well, Just Take Care, Period

From the MTS Archives

I think Craigslist is a great site, but you do shop at your own risk. The "flagging" system helps somewhat, but you still need to be careful.

Case in point? After writing my previous post on hunting for used cars, (see below) I was rather idly browsing through a list of small trucks on Craigslist and, curious, sent emails requesting mileage info to the sellers of two suspiciously inexpensive vehicles, a Nissan Frontier and a Toyota Tundra.

Here's what I got back from "Mark Johnson" on the Frontier.

Hi, I am selling this car because I am being dispatched to the Gulf of Aden.I will be there for more than a year and I’ve cut the price because I must sell before July 30th.The car is in great condition, no rust, no electrical or mechanical problems. I have a clean title ready to be signed. It is still available for sale if interested, price as stated in the ad .The car is in the Billings MT, and in case it gets sold I will take care of shipping.Let me know if you are interested, email back.

Now, if you've ever used the car/trucks section of Craigslist, you'll notice a warning at the top about how any offer to ship a car is "100% fraudulent. So the Billings, MT bit was a red flag. I mean, who's going to sell a vehicle at a very cheap price and also offer to ship it free from Montana to Dallas?
But it got better. I opened the email reply to my inquiry about the Tundra, also listed with a suspiciously low price.

This time, the reply was from "George Lucas" --now there's an original name.

Hi, I am selling this car because I am being dispatched to the Gulf of Aden.I will be there for more than a year. I’ve cut the price because I must sell before July 25th.The car is in great condition, no rust, no scratches. I have a clean title ready to be signed. No electrical or mechanical problems. It is still available for sale if interested, price as stated in the ad ($3500) .The car is in the Dallas area. in case it gets sold I will take care of shipping.Let me know if you are interested, email back.
 

Yes, a late model Toyota Tundra for $3500. This time, he was offering to ship the car from Dallas, which is interesting for someone advertising in the Dallas/Fort Worth area....Dallas is 50 miles away and one would assume that the Tundra could be driven that far, no?

And don't you love the implication that he's in the military?

And for Pete's sake, you'd think he could change the pitch just a little bit, no?

I replied to both posts with the word SCAMMER in 36 point bold type. I tried to go back and flag the ads, but they were already gone; obviously, other people had no problem figuring out that this guy was a crook.
So watch for these people. They are out there, doing their best to ruin a good thing. Read those warnings on the uppper right of the Craigslist page so you'll know some of the tricks scammers pull. Then flag them if you find them.....and never let your hopes for a great deal override your good sense.

Before You Go Shopping for A New (Or Gently Used) Set of Wheels

For those of you checking out the “cash for clunkers” (CFC) option, a few extra pieces of information:

1) This option really only makes sense if you truly have an old clunker, something along the lines of Quartermain, my GMC van. (Don’t tell him I called him a clunker!) At 15 years old and 260,000+ miles, I doubt his trade in value would be over $2000, so it would make sense for me to use the CFC rebate option and get a $4500 allowance for a new van or truck. If you have a car that can be traded in or sold for more than the $3500-$4500 CFC allowance, you’d want to go that route. Any “clunker” used for the CFC incentive will be scrapped, so it’s an either-or deal: trade-in allowance or CFC rebate, but not both.

2) If you’re wondering what kind of mileage rating your potential “clunker” has—and if it will qualify you for the CFC rebate—try this website: http://www.fueleconomy.gov/. It provides info on mpg ratings for a variety of cars, new and used.

3) To check out the prices of new or used cars online, try these sites. (Remember, the CFC rebate can only be used for new cars.)

- http://www.edmunds.com/ provides prices, reviews and ratings of both new and used cars. There’s also a handy feature that lets you get an idea of how much any particular model will cost to own and operate over its lifetime and a Search feature that lets you find specific makes and models for sale in your area.

- http://www.motortrends.com/ also provides reviews and information on both new and used cars and a local Search feature. (Both the Edmunds and Motortrend sites seem to feature only cars being sold by dealers.) There’s also a page that will let you know what rebates or incentives are currently being offered by car manufacturers and dealers.

- http://www.craigslist.com/, the on-line "classified ad" site. Just make sure you select your local city or state in the right hand column before searching. Also, be cautious when responding to ads for “owner” sold cars; there are scammers out there who pose as car owners when they’re actually dealers, and even some who’ll try to pull a version of the classic Nigerian scam by promising to ship you a car if you’ll just send them the money. You'll also see a lot of ads repeating as they're posted day by day.

A few last suggestions:

- Do your comparison shopping before you actually start looking at cars. Knowing what your target make and model sells for in your area will help you know if you've really found a good deal.

- Before going to look at used cars (which are usually sold with little or no warranty) ask your mechanic to give you some tips on checking a car for basic defects, (oil leaks, worn shocks, etc.) so you can eliminate cars with obvious problems. Then ask his cost for examining a car that passes that initial once-over. Most mechanics will check a car for a reasonable fee, and knowing that you’ll have the car examined before you buy it will deter crooks who are trying to palm off a junker. I’ve never bought anything but used cars in almost forty years of driving and I’ve never had an honest seller refuse to let me have the car examined.

- Take a friend with you when you go to look at a car, especially if you’re buying one from a private owner. The presence of a witness will often come in handy and it's safer when there’s two of you.

- Check with your Department of Motor Vehicles and see how car titles are handled in your state. (Each state is different.) Make sure you learn the difference between a “clean” title (meaning that the seller owns the car outright ) and a title that shows that the car comes with some kind of lien that must be paid off before you’ll actually own the car.

- If you’ll have to get a loan to buy your car, check rates and fees with local banks, savings and loans and credit unions for the best terms and prices. If you find good financing, see if you can get prequalified for a loan. There’s nothing worse than finding the exact car you want at a great price and either having to accept a dealer’s high interest loan, or having the deal fall through because you can’t qualify for a loan.

Good luck!

Saving Money Through Barter

If you're finding yourself a little short of cash these days, you might consider indulging in that most ancient of human transactions...bartering.

Long before there was money, bartering was a way to expand your range of possessions. Swapping a basket of freshly caught fish for a suckling lamb, a bag of wool for a woven cloak, or the chopping of a cord of wood in exchange for a hot dinner and a place to sleep....it's a form of commerce as old as mankind and as useful now as it was before humans invented money.

Recently, for example, a lady I know asked me to feed her horses for a few days while she visited a relative. She offered me a $50 round bale of hay as payment. She's also trying to sell her house and the pictures on her online ads don't do the place justice, so I offered to take better pictures for an additional bale. She has more bales than she needs, I have a little extra time and some useful skills....a perfect situation for a swap. Result? She gets her horses fed, better pictures for her ads and I get $100 worth of hay.

Bartering starts by deciding exactly what you need....and who might have it. If you're building a patio, for example, decide if you want pavers, bricks or flagstones and how many you'll need. If you need a bed frame, will you be happpy with anything that lifts your mattress off the floor or are you looking for an antique Victorian four-poster? Need a computer? Laptop or desktop, how much RAM and what do you need in the way of programs? Nail down some specifics, but also remember that you'll have to be flexible as well. So decide what's a true "need" and what's a "want."

Also do some serious thinking before you go looking for services. Some things--basic yardwork, helping clean out a garage, washing windows--can be done by almost anyone, but other jobs require experts: electrical work, anything other than minor plumbing, fixing your crooked teeth....and this may mean that you don't want to rely only on an online ad.

For example....do you want a Star Wars tattoo? (Don't laugh, someone was looking for exactly that on Craigslist.org this morning.) A badly executed tattoo can look awful and one done with dirty needles can literally kill you, so this poster definitely needs a pro, and that means someone who works at a tattoo shop. He's offering his skills as a handyman in trade, skills that businesses often need. If I were him, I'd make a list of all the local tattoo shops and contact them directly, a safer alternative perhaps than relying on an online notice.

The second part of the equation involves figuring out what you can offer in trade. Sit down and make a list of stuff you have but don't want. You may think no one could stomach your late Aunt Emma's avocado-colored sofa (currently taking up half the space in your garage) but that might be exactly what someone's looking for. The same holds true of any leftover building materials, auto parts, the above-ground pool you never use and hate cleaning, the cypress trees sitting right where you want to put a driveway (don't laugh, someone was offering that on Craigslist too) or the old LPs or stacks of National Geographics sitting in your attic.

Also list what you can do. You'd be surprised at what skills people are looking for. The fact that you're reading this article proves you know the basics of using a computer and searching online. There are a surprising number of people who want someone to teach them that. Or are you a good cook? Great at organizing? A terrific gardener? There are people out there who need new recipes for their next party, their home offices organized or their dying gardens revitalized. If you speak more than one language, can haul bricks or stack hay, refinish furniture or build shelves, knit, sew or wash windows....in short, if you're good at almost anything, you have a skill you can offer in trade.

Once you figure out the specifics, start looking. Craigslist is a good place to start, but don't limit yourself to that venue alone.Do online searches, check the Yellow Pages, put the word out to your friends and relatives or visit local businesses that might be able to supply what you need. Don't hesitate to bring up the idea of a trade. The worst that can happen is that someone says "No."

If money is tight, save your bartering efforts for things you'd otherwise have to buy. I needed hay for my ponies, so swapping my services for those two round bales meant I had an extra $100 to spend on necessities.

When you find that potential swap, ask enough questions to make sure you're both going to be happy with the deal. A woman once offered me a dog house if I'd do a "small amount of fence work." I asked to see the dog house before agreeing and found it to be a dry-rotted piece of junk I wouldn't pay $5 for, while the "small" amount of fence work consisted of taking down a hundred-foot length of four-strand barbed wire fence, posts and all. I politely declined.

And don't make a "services" deal open-ended. Set limits. Put things in writing. You may not need a contract, but a polite exchange of emails (keep copies) listing details of the deal is a good idea.

For instance, the friend who says she'll shoot your wedding pictures if you'll make her an afghan needs to show you some photos....and you should show her samples of your knitting. You also need to specify how big an afghan you're willing to make and she needs to know how long the wedding shoot will last and how many photos you expect her to take. Listing such specifics before you agree to the deal will help eliminate discontent later.

One last word: the IRS counts barter as income, so check before you trade for anything of significant value. You'll find more information on bartering and taxes here.

Good luck.....and good trading!