Buying a Used Car

Most people are trying to save money when they buy a used car. Used cars are cheaper to buy, insure, register and pay tax on. A key reason for many people is the first year depreciation of a new car. A new car can depreciate as much as 30% in the first year.

Used cars are popular choices for parents buying a car for their kid. They want something safe and reliable but aren’t as particular about how it looks so that dings and dents aren’t that important. They mainly want to avoid buying a used car that will need major repairs.

A good place to start is to come up with a list of cars you are most interested in. Cars like the Toyota Camry which are considered very reliable and have a long history of lasting for years can be a good choice. This list will naturally depend on what type of car you need. If you live in a snow belt you may want to get a 4 wheel drive vehicle or at least a front wheel drive vehicle which handles well in the snow. You may need a pickup to haul things around. Once you know what type of vehicle you need make a list of the models you want to look for.

The internet has lots of resources you can use to build your list and to check on the fair market value and technical specifications of the cars you are interested in. Review the lists of the most reliable cars over time. Car and Driver has an annual list of the top five cars in each category. See which cars they have recommended in past years and review them. Kelley Blue Book (www.kbb.com) and Edmunds.com provide information on the fair market value, technical specifications and reviews of used cars, trucks and SUV’s.

Once you start looking at used cars make sure you find out if the car has ever been in an accident and it’s great if the seller has repair records and the maintenance history. If you are buying from a used car dealer ask if there is a warranty.

Do a good inspection of the car, the exterior, interior and the engine. Is the engine clean? Are the fluid levels good? Do you see signs of any leaks underneath the vehicle? Make sure you test drive the car, the longer the better. Leave the radio off so you can hear any strange noises. Notice how the car takes bumps, how many rattles you hear and engine noises. Check underneath particularly the exhaust system.

When you find the used car you want and have agreed on a price with a used car dealer make sure you read the fine print of anything you sign. Once you sign it is a done deal. A lot of people dread dealing with used car dealers but if you do your homework, inspect and test drive the car you will avoid most of the pitfalls. Also, dealing with a reputable used car dealer you can trust can make the process enjoyable.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV's. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.

Test Driving a Used Car

One of the most important things you should do before purchasing a used car is a test drive. After you have thoroughly checked out the exterior and the interior of the car take it out for a test drive. You should allow as much as a half hour for this.

Start by getting a feel for how comfortable the car is. Will all passengers be comfortable? If you often have people in the back seat make sure that getting in and out of the back seat is easy, particularly for the elderly. If you have young children you should bring your car seat and make sure it fits well in the back. Check out the visibility from the inside of the car. Can you easily see out all of the windows? Check the drivers seat out to make sure it is comfortable and that the seat buttons work well. Check all power window and seat buttons and mirrors, cruise control buttons and steering wheel adjustments.

Turn the heater and air conditioner on and make sure they work properly. Check the air conditioner first and it should blow in cold air in less than a minute if it is working properly. Make sure the air vents work properly and get in the backseat and make sure the vents work back there as well.

Start the car and make sure it starts easily. Once driving test the transmission making sure it shifts easily and if it is a manual transmission that the clutch works smoothly. If you hear any loud noises you may want to have a mechanic look at it. Try and drive a route that offers a lot of different driving scenarios. For example, try entering an expressway and see how well the car accelerates on the entrance ramp. See how well it handles in stop and go traffic and on different types of roads be they smooth or rough. How does it handle potholes and speed bumps? There definitely shouldn’t be any wiggling.

Check the alignment by taking your hand off the wheel when it’s safe, to see if the car pulls in one direction. Try a couple different type of roads, smooth and rough, to make sure it doesn’t need a front end alignment.

Check the brakes under a number of conditions. Find a place where you can get the car up to a high rate of speed and then slam on the brakes to see if the car pulls to the right or left. Soft or squishy brake response usually means the brakes aren’t in good shape.

It pays dividends to hire a mechanic to check anything out you might have noted or questioned during your test drive. Whether you are buying from a private seller or a used car dealer they should allow you to have a mechanic check the car over for any problems.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV's. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.

Your Credit Report and Financing a Used Car

Before you even start looking for a used car you should determine how you are going to pay for it. Most people put a down payment on a used car and finance the rest. In today’s economy it is important to know what your credit score is as lending qualifications have tightened up. Your credit score is a three digit score that is the determining factor in whether you qualify for financing and what percentage rate you will pay.

If you don’t already know find out what your credit score is. The three digit score is known as a FICO score. There are three major credit bureaus that assign scores: TransUnion, Experian and Equifax. The score shows the likelihood of your paying back the loan on time. It is based on the length of your credit history, the credit you already have and the number of recent credit applications you have submitted. The average credit score in the United States is 694. The higher the score the lower risk you are to lend to. The scores can range from 300 to 850.

You can get one free credit report per year online, by law, from each of these three bureaus. Go to www.annualcreditreport.com for your free report. There isn’t usually a big variance in the scores from the different bureaus. If you get a free report from one agency at a time you can get a free credit report three times a year.

If you have a credit score of 680 or above you should be able to finance your used car with good terms. If your credit score is below 680 you should consider shopping at bad credit car dealers who offer private financing.

You can also take steps to improve your credit score. First, check your credit report for any errors. Look for errors in late payment or unpaid credit. If you find any correct them by contacting the company reporting them. This is the easiest way to improve your credit score.

Paying your bills on time is another important step. One third of your credit score is based on your payment history which includes any late payments and foreclosures. One third of your credit score is based on the total amount of balances you owe versus your total credit limit. It is best to keep your balances to less than 80% of your credit limit on your credit cards to keep your score high for this factor.

Other important factors are a long history of active accounts which shows you are a good credit risk, responsible use of credit showing timely payments on all debt and a low incidence of new credit applications.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV's. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.

U.S. News & World Report Best Cars for the Money and Car and Driver Editors Choices

Whether you are in the market for a new or used car it is always valuable to review what industry experts consider the best cars in each class. In this weak economy it is also a good idea to know what cars are considered to be the best buys.

Let’s look at two classes of cars and compare Car and Driver’s 2009 Editors Choices and U.S. News & World Reports Best Cars for the Money. We will look at small cars and pickups.

Car and Driver’s Editors Choice in the Small Car category are:
1) Honda Fit
2) Volkswagen Rabbit
3) Mazda 3
4) Honda Civic
5) Nissan Versa

U.S. News & World Report Best Cars for the Money in the Small Car category are:
1) Honda Fit
2) Honda Civic
3) Honda Civic Hybrid
4) Volkswagen Rabbit
5) Hyundai Elantra

Let’s take a closer look at the Honda Fit since it is considered the #1 editors choice and the #1 best car for the money. What sets the Honda Fit apart is its quality which makes it very reliable. It has great performance, looks great and is fun to drive. Great visibility from the front and rear and spaciousness make it seem much bigger - more like a compact car. It also has a lot of cargo space. The fuel efficiency is good and it is a very safe car. It is on the expensive side for a small car but this money is more than made up over the life of the car due to its quality and reliability.

Car and Driver’s Editors Choice in the Pickup category are
1) Dodge Ram
2) Honda Ridgeline
3) Ford F-150
4) Chevrolet Silverado
5) Nissan Titan

U.S. News & World Report Best Cars for the Money in the Pickup category are:
1) Ford F-150
2) Chevrolet Silverado 1500
3) GMC Sierra 1500
4) Dodge Ram
5) Nissan Titan

Let’s look at the Ford-150 since it is considered the best pickup for the money. The ranking by U.S. News & World Report is based on six reviews and an analysis of safety and reliability data. It gets good gas mileage for a full size pickup, 15 mpg in the city and 21 mpg on the highway. There are many model and feature choices with a stylish interior. It has a nice ride and is quiet at all speeds.

It is interesting to note that all of the small cars are foreign cars while the majority of the pickups are American made vehicles. If you are in the market for a new or used car consider these highly rated 2009 vehicles. Even if you are reviewing a previous year model these top rankings don’t change significantly from year to year. What changes is where they are ranked in the top 5.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV's. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.

Power Inverters for Mobile Offices in Cars

Laptop usage in cars is becoming more of a necessity than luxury for many people. Power inverters have been used by police and ambulance services for years. Many sales people and support personnel use inverters in their vehicles today. For example, a locksmith arrives at a hotel to assist a patron who has locked themselves out of the car after turning it on to warm it up during a snowstorm. The locksmith gets the car unlocked and goes into his vehicle to print out the invoice for the customer. He also has a wireless internet connection and can look up any information he may need. A car can be easily turned into a mobile office with a power inverter, laptop and printer.

Power inverters change the DC voltage (battery power) in vehicles into AC electricity (household power) used in home and offices. There are many different types of inverters and it is important to determine what type is best particularly to power a laptop.

There are two types of sine wave inverters: true sine wave and modified sine wave. True sine wave inverters produce power similar to the electric power in your house. Modified sine wave inverters can have problems powering some equipment and become unreliable. True sine wave inverters are more expensive, sometimes 2 to 5 times more expensive, but well worth the money if your income depends on it. The true sine wave power will be much more reliable and run things much better.

Modified sine wave inverters can cause power spikes which can ruin the power pack on laptop charger. A power pack can be an expensive part to replace, anywhere from $90 to $150. These spikes and surges can even go into the laptop and damage the electrical system. A surge protector does not offer the protection needed for modified sine wave inverters.

Determining what wattage inverter to get should be based on how much equipment you will be trying to run. To power a laptop and printer you will need at least a 300 watt true sine wave inverter. To power a mobile office in a truck or van with more equipment to power you will need a higher wattage inverter. Start by calculating the wattage for each device. The easiest way to do this is to check the electrical requirements tag which is usually located on the cord. It will have input voltage and amperage. Some will have output voltage and amperage which you won’t use in your calculations. Once you know how much wattage you need than it is best to buy the next size up. It is much cheaper to buy what you need the first time than having to buy it twice.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV's. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.

Is it Better to Buy a New or Used Car in 2009?

The bleak economic picture has many people who need to buy a car in a quandary as to whether it is better to buy a new car with the many deals and 0% financing available or a good used car.

There are great deals to be made out there on new cars. Car companies are offering 0% financing and large discounts on cars. Those people with good credit ratings and job security who prefer to buy new cars and need a new car should be looking in 2009. It is still important to shop around to make sure you are getting the best deal. There are excellent warranties on cars today so it is important to feel comfortable with the service department of the dealer you purchase from. You will most likely be taking your car there for years to be serviced.

There are additional costs associated with buying a new car versus a used car. Depreciation is a significant expense to the new car buyer. Cars can depreciate anywhere from 20% to 40% in the first year after purchase. They typically depreciate 15% the 2nd year, 13% the 3rd year and 12% in the 4th year. People are keeping their new cars on average about 5 years today unlike 20 years ago when they would trade every year or every other year. If you go to trade your car in the 5th year it has depreciated approximately 70%.

Taxes are another additional cost associated with buying a new car versus a used car. Typically taxes are a lot lower on a used car than a new car. Insurance costs can be much higher on new cars. Some states require consumers to buy full coverage for new cars and only require liability coverage for used vehicles which is much cheaper.

New car prices are affected by the state of the economy much more than used car prices. Typically, automobile companies have several layers of incentives for dealers and during a weak economy they can offer more vehicles at lower pricing to dealers combined with attractive financing packages. Used car dealers, on the other hand, still purchase cars predominantly at auctions and put the same profit margin on vehicles during bad times or good.

The decision to purchase a new or used vehicle in the current recession requires considering many variables. The most important variable is what makes the most sense for the consumer based on their financial situation. If there is any doubt about job security or if the consumer already has high levels of consumer debt purchasing a cheaper used car and paying with as much cash as possible may be the smartest choice .to make.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV's. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.