Whether to buy a new car or buy a used car is often times the first decision that needs to be arrived at before you can actively begin perusing purchasing your next vehicle.

Let’s take a look at some tips, pros, and cons when it comes to making this decision.

First of all, having been in the automotive business for many years, I almost always lean toward finding a good used car that fits what I am looking for. For me, I believe that used cars offer the best value for your dollar. In most cases, you’ll find used car departments are much more used to and willing to negotiate the price that they have posted on the car. From a negotiating standpoint, most used cars won’t have all of those superfluous dealer ‘add-ons’ stuck on the window either that will just never do.

In the automotive market, used cars will most certainly come with a lower initial price tag than a comparably equipped new car. And not only will the price be lower, you may also find that so is your cost to insure the used car as well as the tags, and taxes. Depreciation being what it is; means that with a car a couple of years old, the biggest depreciation hit has already occurred. And from a tangible perspective, you may have a better chance of getting those upgrades you’d like to have on the used car that you couldn’t otherwise afford going with the new.

Yet, with all of this, buying a used car isn’t for everyone. Finding a used vehicle that fits one’s entire car buying criteria can be a tough exercise in balancing what you want with the value versus risk inherent when it comes to used cars.

Not so many years ago, reliability was a major concern when purchasing a used car… and rightfully so. Today however, reliability problems are a fraction of what they used to be. Today’s vehicles, when properly maintained will easily go for 100,000 miles and it’s not uncommon for vehicles to be motoring along as they approach 200,000 miles or more. And with all of the information now available online, the risk factor is again reduced even a bit more.

Even though more reliable today, buying a used car for people means buying a car that is probably out of its original bumper to bumper warranty. This alone, is enough to repel many potential car buyers back to the new car side of the dealership.

As you know, if you are looking at buying a used car, you are probably looking at a car that is outside the factory warranty or at least would have very little remaining. With no warranty you’ll be on the hook to pay for any needed repairs out of your own pocket. However, the biggest expense for most all cars today are the things that aren’t covered by any manufacturer’s warranty anyway; items such as brakes, tires, alignment, batteries, etc.

Of course nobody can guarantee that you won’t encounter a lemon. No matter what the make and model, no manufacturer can produce a vehicle that can withstand years of neglect and/or abuse. Always, always, always give the used car a thorough inspection both by yourself and a qualified mechanic; doing this will catch most problems that may be looming on the horizon.

When it comes to financing the purchase of a used car, you find that the going interest rates will typically be higher than new car rates. This is definitely a piece of the puzzle you’ll want to check out. There is no rule of thumb as to what the difference in the interest rate will be between the two because there are just too many determining variables involved such as; the economy, rebates and incentives involved on the new car side, your credit, length of financing, and even the type of used car you’re looking at. Be sure to crunch the numbers for both sides.

With used cars, insurance can save you some money as well because you’ll typically pay less for your insurance on a like model from a few years past. The reason is simple; less cost of replacement for the insurance company and used cars are generally not high on the stolen lists.

And finally, (the latest) safety features could be a concern if you’re looking at used car (particularly if you’re going back a few model years).

All in all, if the touch, feel, and smell of a new car, isn’t a top priority for you, I think you’ll find that a well thought out used car purchase you can get more car and features and still be within your budget.

We are back with part three of the series, Questions to Ask When Buying a Used Car. In part two, we covered the questions about the drive train, service history, and accident history. In this part we are getting right down into the finer details of what questions to ask when you are interviewing used car sellers over the phone before you travel out to see their car for sale.

It’s worthwhile to ask the seller how much rust their car has. Let’s talk about rust. Even a car that is only a few years old can have a little rusty spot or two. An older automobile that is for example 10 or 15 years old can potentially have anywhere between no rust at all and a serious cancer condition. No one likes a rusty car, but it’s obvious that the less there is the better.

It is always interesting to ask about rust over the phone with a used car because everyone has a different perception about how much rust their car has. It is difficult to quantify, and it’s all relative. Some people have told me that their car is very rusty, and when I went to see it I found that it had almost no rust at all by my standards! The opposite scenario is more typical.

The answers to the rust question are often misleading, but ask anyway and write down their responses. If you do go out to look at the car later, you can learn more about the seller by referring to your notes. Speaking of notes, it’s a really good idea to take careful notes when car shopping over the phone. It is possible to gather so much information in a relatively short period of time, that if you don’t record what you’ve learned in a systematic way, you will end up with confusing, incomplete, or just downright incorrect data.

I like to take a blank sheet of paper and begin each entry with the year, make, model, price, and phone number from the ad while I am dialing. That means I am writing about that vehicle before I even have the person on the line. From there I just add the details and then make a line across and call another one. After several calls have been made, it’s easy to look back and see which ones look the best. Take your notes with you on your actual visit and compare what the seller has told you with your sheet to see if they were being straight with you over the phone.

Ask the sellers if there are any problems that they are aware of with their car? Again make notes on their answers. It’s okay to spend a little time on this one. You can subtly remind them that it’s important to be truthful here by telling them what you want the car for and why you are concerned about its future reliability. Ask them if this car needs anything in order to be safe to drive right now, in the near future, and in the distant future.

You should always ask them what they have done in terms of maintenance or repairs to the car lately, and if they have the receipts to prove the work. If they have no receipts, then be very skeptical of the maintenance history. No service records usually mean incomplete maintenance which spells trouble for any used vehicle later in life.

That wraps up part three. In part four, I’ll cover some more specifics including expensive-to-replace critical-car-components! Thanks for reading.