I hear this question a lot from people looking at used cars for sale.
Generally, 15,000 miles a year is considered as an "average" number of miles per year. So a car that is 5 years old would have about 75,000 miles to be considered "average." Anything more, and a car is considered to be "high mileage." Anything less, and it's a "low mileage" car.
Does this mean you should avoid cars with "high" mileage? Are cars with high mileage a higher risk? Will they break down sooner?
In the last decade or so cars have become much more reliable than years ago when a car was looked at as junk when it reached 100,000 miles. Not so anymore. Many modern cars with 100K miles or more are in great condition and will easily go another 100K.
However, if a car has not been maintained properly and has been driven hard, it can be junk with only 50K miles on the odometer.
Therefore we can't judge a car's condition or its risk for problems by simply looking at it's mileage. It's an old rule-of-thumb that doesn't work well anymore. We can't simply say that a certain mileage is "too many."
What is more important than a car's mileage is its actual condition — as determined by a mechanic's inspection. A professional mechanic has the experience and equipment to not only determine a car's current condition and how well it has been cared for, but he can also judge if it is likely to have future problems. If you are considering buying a used car, an inspection might cost you $75-$100 but it can help you avoid a much more costly mistake.
Sell Your Car Instantly
Remember, used cars are sold "as-is" which means you can't take them back if you find problems later — even if the seller lied to you. In many cases, a seller may not be fully aware of his car's problems or potential problems and can't tell you about them if he doesn't know himself. You should not completely rely on a seller's statement about the condition of the car he is selling.
Don't assume a car is in good condtion because it has "low" or "average" miles — or that it is in bad condtion if it has "high" miles. It just not that simple.
Therefore, the time to learn about a car's actual condition and risk of future problems is before you buy, not after.
One way to reduce your risk of expensive problems and breakdowns is to get an extended used-car warranty when you buy a used car. It's relatively cheap and can protect you from unexpected expenses.
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Feb 16, 2012
What web sites sell good used cars?
Where can I find used cars online? What are the best web sites for buying cars? These are common questions on automotive consumer web sites and question/answer boards. We answer the questions here.
Although there are many off-line places to look for good cheap used cars (see Cheap Used Cars), many people enjoy the ease and convenience of on-line searching and shopping.
So what are the best sites for cars?
cheap used carsMany people are familiar with eBay.com, the popular online auction site. A separate section of the web site called eBay Motors conducts online vehicle auctions. Sellers might be individuals or dealers. What are the benefits? There are thousands of cars to choose from, in all price ranges, and eBay has a good buyer protection program. Some parts of the program are free, some cost you money. What's the disadvantage? It's an auction. There may be many other bidders for the car you want. Unless you are willing to pay more than the car is worth, you may not win. Furthermore, the car might not be close to you. You can't see it, you can't inspect it, and you can't drive it – until after you buy it. It can cost you extra to have it inspected and shipped to you.
cheap used carsAnother popular site for buying and selling used cars is Craigslist. It is a classified ads site, not an auction like eBay. Sellers are primarily individuals but dealers advertise there as well. You can search for cars in your city and talk via email with buyers. One big caution – scammers love Craigslist, which has no buyer protection program as does eBay. See Car Seller Scam for more details.
cheap used carsOther sites such as AutoTrader.com, Edmunds.com, and Cars.com primarily feature dealer cars and have full-featured search capability. UsedCars.com is one of the largest and most popular of this type of site.
cheap used carsMany new-car and used-car dealers have their own web sites on which they list and display used cars for sale. Use Google to search for used car dealers in your city or town.
cheap used carsMany newspapers who have classified ads also have web sites on which the classified ads are shown. Find your local newspaper's web site and look for the automotive classified ad section.
cheap used carsAnother excellent place to look for used cars online is on enthusiast web sites and forums. If you know the vehicle brand you want, use Google to search for owner/enthusiast sites. Most have buy-and-sell sections. For example, the BMW enthusiast forum, BimmerFest, has a classified ad section where members can buy and sell.
Although there are many off-line places to look for good cheap used cars (see Cheap Used Cars), many people enjoy the ease and convenience of on-line searching and shopping.
So what are the best sites for cars?
cheap used carsMany people are familiar with eBay.com, the popular online auction site. A separate section of the web site called eBay Motors conducts online vehicle auctions. Sellers might be individuals or dealers. What are the benefits? There are thousands of cars to choose from, in all price ranges, and eBay has a good buyer protection program. Some parts of the program are free, some cost you money. What's the disadvantage? It's an auction. There may be many other bidders for the car you want. Unless you are willing to pay more than the car is worth, you may not win. Furthermore, the car might not be close to you. You can't see it, you can't inspect it, and you can't drive it – until after you buy it. It can cost you extra to have it inspected and shipped to you.
cheap used carsAnother popular site for buying and selling used cars is Craigslist. It is a classified ads site, not an auction like eBay. Sellers are primarily individuals but dealers advertise there as well. You can search for cars in your city and talk via email with buyers. One big caution – scammers love Craigslist, which has no buyer protection program as does eBay. See Car Seller Scam for more details.
cheap used carsOther sites such as AutoTrader.com, Edmunds.com, and Cars.com primarily feature dealer cars and have full-featured search capability. UsedCars.com is one of the largest and most popular of this type of site.
cheap used carsMany new-car and used-car dealers have their own web sites on which they list and display used cars for sale. Use Google to search for used car dealers in your city or town.
cheap used carsMany newspapers who have classified ads also have web sites on which the classified ads are shown. Find your local newspaper's web site and look for the automotive classified ad section.
cheap used carsAnother excellent place to look for used cars online is on enthusiast web sites and forums. If you know the vehicle brand you want, use Google to search for owner/enthusiast sites. Most have buy-and-sell sections. For example, the BMW enthusiast forum, BimmerFest, has a classified ad section where members can buy and sell.
Is this a good reliable car?
This question is usually asked about a specific car that the asker is considering to buy. It might be a general question about a particular make/model/year car. Or it might be a very specific car that the asker found for sale on an online web site.
This is always a tough question to answer because every car is different, even those of the same make, model, and year. Some have been well maintained and driven sensibly. Others have not.
Even a very reliable brand can have problems if it has not been maintained properly and regularly.
A car that has been wrecked and repaired may not be as reliable as one that has not, especially if non-OEM (original equipment manufacturer) replacement parts have been used.
But if we ignore these kinds of possible differences, certain car brands are known to have better quality and reliability than other brands. Some makes and models have fewer problems than others.
Consumer Reports magazine conducts annual car owner surveys to find out not only which makes and models have problems, but exactly the kinds of problems they have experienced. After thousands of survey responses have been compiled, a clear picture appears of how the various car brands measure up. New results are published each year in the April Auto Issue of the magazine, as well as on the Consumer Reports web site (www.consumerreports.org).
What about brand reliability? Which makes are most reliable?
For a specific car, when someone asks about reliability, they are actually asking about the possibility of future problems. Clearly, nobody wants surprise breakdowns or unexpected repair bills. Buying a reliable car not only means less inconvenience and cost but also greater piece-of-mind.
According to Consumer Reports' latest survey (as of this writing), the top ten brands for reliability are as follows:
Honda (most reliable brand)
Acura
Scion (Toyota)
Subaru
Toyota
Lexus
Infiniti
Mitsubishi
Porsche
Buick (GM)
Notice that only one (Buick) is an American brand. The others, except for German-made Porsche, are Japanese brands. Therefore, in general, Japanese brands are more reliable than most American, European, and Korean brands.
Interestingly, the lowest rated five brands (bottom-up) are:
Land Rover (least reliable brand)
Hummer (GM)
Cadillac (GM)
Mercedes-Benz
Pontiac (GM)
Of these least reliable brands, all except Pontiac are considered premium luxury brands. We guess you don't get what you pay for these days.
Yes, but is this car reliable?
As we've seen, Honda is the most reliable of all car brands. Does this mean if you go out and buy a 1996 Honda Accord with 120,000 miles it will give you no problems for the next 100,000 miles?
Maybe.
Maybe not.
Reliability surveys only cover about the last 5-6 years. After 6 years, at an average 15,000 miles per year, a car will have 100,000 miles or more on the odometer. Any car in that mileage range, regardless of initial reliability, can have problems, especially if it hasn't been driven sensibly or maintained properly. For example, Honda recommends that engine timing chains be replaced at 65,000 miles. To not do so means the engine could be destroyed if the chain breaks. To buy a normally very reliable Honda with 100,000 miles on which the timing chain has never been replaced is a big risk.
So, what is the answer?
If you are considering buying a older used car with high mileage, the only way, repeat only way, you can know the condition of the car and its chances of future problems is to have the car inspected by a qualified mechanic.
You should never totally depend on a car seller's statement about the vehicle's condition or how it has been maintained. A car can easily have problems that the seller is not aware of. Remember, used cars are sold "as-is" which means if problems are found later, it is too late to do anything about it.
This is always a tough question to answer because every car is different, even those of the same make, model, and year. Some have been well maintained and driven sensibly. Others have not.
Even a very reliable brand can have problems if it has not been maintained properly and regularly.
A car that has been wrecked and repaired may not be as reliable as one that has not, especially if non-OEM (original equipment manufacturer) replacement parts have been used.
But if we ignore these kinds of possible differences, certain car brands are known to have better quality and reliability than other brands. Some makes and models have fewer problems than others.
Consumer Reports magazine conducts annual car owner surveys to find out not only which makes and models have problems, but exactly the kinds of problems they have experienced. After thousands of survey responses have been compiled, a clear picture appears of how the various car brands measure up. New results are published each year in the April Auto Issue of the magazine, as well as on the Consumer Reports web site (www.consumerreports.org).
What about brand reliability? Which makes are most reliable?
For a specific car, when someone asks about reliability, they are actually asking about the possibility of future problems. Clearly, nobody wants surprise breakdowns or unexpected repair bills. Buying a reliable car not only means less inconvenience and cost but also greater piece-of-mind.
According to Consumer Reports' latest survey (as of this writing), the top ten brands for reliability are as follows:
Honda (most reliable brand)
Acura
Scion (Toyota)
Subaru
Toyota
Lexus
Infiniti
Mitsubishi
Porsche
Buick (GM)
Notice that only one (Buick) is an American brand. The others, except for German-made Porsche, are Japanese brands. Therefore, in general, Japanese brands are more reliable than most American, European, and Korean brands.
Interestingly, the lowest rated five brands (bottom-up) are:
Land Rover (least reliable brand)
Hummer (GM)
Cadillac (GM)
Mercedes-Benz
Pontiac (GM)
Of these least reliable brands, all except Pontiac are considered premium luxury brands. We guess you don't get what you pay for these days.
Yes, but is this car reliable?
As we've seen, Honda is the most reliable of all car brands. Does this mean if you go out and buy a 1996 Honda Accord with 120,000 miles it will give you no problems for the next 100,000 miles?
Maybe.
Maybe not.
Reliability surveys only cover about the last 5-6 years. After 6 years, at an average 15,000 miles per year, a car will have 100,000 miles or more on the odometer. Any car in that mileage range, regardless of initial reliability, can have problems, especially if it hasn't been driven sensibly or maintained properly. For example, Honda recommends that engine timing chains be replaced at 65,000 miles. To not do so means the engine could be destroyed if the chain breaks. To buy a normally very reliable Honda with 100,000 miles on which the timing chain has never been replaced is a big risk.
So, what is the answer?
If you are considering buying a older used car with high mileage, the only way, repeat only way, you can know the condition of the car and its chances of future problems is to have the car inspected by a qualified mechanic.
You should never totally depend on a car seller's statement about the vehicle's condition or how it has been maintained. A car can easily have problems that the seller is not aware of. Remember, used cars are sold "as-is" which means if problems are found later, it is too late to do anything about it.
How much should I pay for this car?
This is a question we see almost everywhere we go online. It's usually asked about a specific car that the asker has found either online, at a dealer, or being sold by an individual.
The car's seller has set a price and the asker doesn't know if it is a good price or not, or if the seller might accept a lower price.
It's just an asking price
All used car prices are negotiable.
Let's repeat that statement for emphasis. All used car prices are negotiable.
Dealers and savvy individual car sellers know that you always set your asking price higher than the price you are willing to accept as a final sale price. How much is the price usually bumped up? Dealers might set asking price 20% - 50% higher, or more. Individual sellers may only go 10% - 20%.
If you don't know how much a seller has bumped his price over his intended selling price, and we don't know the fair market value of his car, how do you know what to pay? We just provided the most important clue – fair market value.
A seller may have an unrealistic notion of the fair value of his car. He might believe his car is worth, say $5000, and set his asking price at 10% higher — $5500. A potential buyer, knowing the seller has probably bumped the selling price up, offers $5000. The seller takes it and both parties go away happy with the deal.
So, what's wrong with the deal? If we check Kelley Blue book (www.kbb.com) we find that the car is only worth $4000. The seller, perhaps unknowingly, based his asking price on a selling price that was too high for that vehicle. He made more money than he should have, and the buyer paid more than he should have.
Let's look at another scenario, this time with a dealer car. A dealer has a car he knows is worth $4000. He would make a nice profit at that price. He puts it on his lot with a $6000 price tag. There is a good chance that someone who has little knowledge of fair market prices will come along, fall in love with the car, and pay full asking price. He makes $2000 extra profit on the deal. However, along comes a more savvy customer who knows that asking price is almost never selling price and "talks the dealer down" to $5000. Both parties go away happy. However, the dealer just made $1000 of extra profit (since the car was worth only $4000), and the buyer thinks he just got a $1000 discount.
The right price to pay
Even though there are used car price guides such as Kelley Blue Book and NADA Guides, and others, the values in these guides are just educated estimates and almost always vary between different guides. So which one is best? Which one is "right?" None are best. None are "right." That's why they are called "price guides" and not "standard prices."
Sell Your Car Instantly
The "right" price to pay for a used car is one that is fair, based on a consensus of the pricing guides and the going prices for that same make/model/year car in your area. Essentially, the right price for any car is the price that a smart informed customer is willing to pay. If a car is especially desireable, such as a good hybrid car during times of high gas prices, it may be worth a little more than guide prices, which can't always keep up with fast-changing market conditions. Or it might be worth less if it's a gas guzzling large SUV.
If the car is one for which you've been searching for a long time, and it's in great condtion, go ahead and pay more than fair market value. It's okay. Congratulate yourself and enjoy your car.
Therefore you should use used-car pricing guides as a base for making decisions about what to pay, but also add your own personal factors into the decision-making process to arrive at a price you are willing to pay.
If you will need a loan to buy your car, the "right" price is a price that your bank or ar auto loan company such as Auto Credit Express considers fair. Getting a pre-approved loan will tell you exactly how much you can borrow for the car you want. If you pay more, you make up the difference with a cash down payment.
The car's seller has set a price and the asker doesn't know if it is a good price or not, or if the seller might accept a lower price.
It's just an asking price
All used car prices are negotiable.
Let's repeat that statement for emphasis. All used car prices are negotiable.
Dealers and savvy individual car sellers know that you always set your asking price higher than the price you are willing to accept as a final sale price. How much is the price usually bumped up? Dealers might set asking price 20% - 50% higher, or more. Individual sellers may only go 10% - 20%.
If you don't know how much a seller has bumped his price over his intended selling price, and we don't know the fair market value of his car, how do you know what to pay? We just provided the most important clue – fair market value.
A seller may have an unrealistic notion of the fair value of his car. He might believe his car is worth, say $5000, and set his asking price at 10% higher — $5500. A potential buyer, knowing the seller has probably bumped the selling price up, offers $5000. The seller takes it and both parties go away happy with the deal.
So, what's wrong with the deal? If we check Kelley Blue book (www.kbb.com) we find that the car is only worth $4000. The seller, perhaps unknowingly, based his asking price on a selling price that was too high for that vehicle. He made more money than he should have, and the buyer paid more than he should have.
Let's look at another scenario, this time with a dealer car. A dealer has a car he knows is worth $4000. He would make a nice profit at that price. He puts it on his lot with a $6000 price tag. There is a good chance that someone who has little knowledge of fair market prices will come along, fall in love with the car, and pay full asking price. He makes $2000 extra profit on the deal. However, along comes a more savvy customer who knows that asking price is almost never selling price and "talks the dealer down" to $5000. Both parties go away happy. However, the dealer just made $1000 of extra profit (since the car was worth only $4000), and the buyer thinks he just got a $1000 discount.
The right price to pay
Even though there are used car price guides such as Kelley Blue Book and NADA Guides, and others, the values in these guides are just educated estimates and almost always vary between different guides. So which one is best? Which one is "right?" None are best. None are "right." That's why they are called "price guides" and not "standard prices."
Sell Your Car Instantly
The "right" price to pay for a used car is one that is fair, based on a consensus of the pricing guides and the going prices for that same make/model/year car in your area. Essentially, the right price for any car is the price that a smart informed customer is willing to pay. If a car is especially desireable, such as a good hybrid car during times of high gas prices, it may be worth a little more than guide prices, which can't always keep up with fast-changing market conditions. Or it might be worth less if it's a gas guzzling large SUV.
If the car is one for which you've been searching for a long time, and it's in great condtion, go ahead and pay more than fair market value. It's okay. Congratulate yourself and enjoy your car.
Therefore you should use used-car pricing guides as a base for making decisions about what to pay, but also add your own personal factors into the decision-making process to arrive at a price you are willing to pay.
If you will need a loan to buy your car, the "right" price is a price that your bank or ar auto loan company such as Auto Credit Express considers fair. Getting a pre-approved loan will tell you exactly how much you can borrow for the car you want. If you pay more, you make up the difference with a cash down payment.
Where can I buy a good cheap car for $200, or $500, or $1000?
Buying a good used car for $200, or $500, or even $1000 is not impossible but it requires some extra time looking, checking, and driving to find the jewels among the junkers.
When you consider that a brand new car might cost $20,000, the same car some years later will likely have a lot of miles on it and possibly some problems. High mileage, however, is not necessarily a reason not to buy. Many cars with high mileage are in great condition and can last many more miles before finally falling apart.
Many problems with older used cars can be fixed relatively easily and inexpensively. Problems with engines and transmissions are the most expensive to repair. If the only problems are things like hoses, belts, wires, brakes, or electrical equipment, these can be fixed or replaced without great expense.
Sellers of older cars with problems may simply not want to fix the problems themselves but are willing to sell at a large discount to a buyer who will do the repairs. Buyers should make sure that the selling price plus the cost of repairs does not exceed the fair market price of the car in good condition. Market values can be found at kbb.com or nadaguides.com.
Buy from Used Car Dealers
Most dealers normally don't sell older cars with high mileage, especially new-car dealers who have used-car lots. However, smaller independent used-car dealers , especially buy-here-pay-here lots, may specialize in this type of vehicle. They cater to customers who are on limited budgets. Do not expect the cars to be well-inspected or repaired, regardless of what the salesman tells you.
Used car dealers do not necessarily know the problems a car might have. We often hear from people whose cars have broken down after a few days and want to sue the dealer for deceiving them. Let's say it again, used car dealers don't make much effort to inspect or test their cars to learn what problems the cars might have. When they buy a car at a wholesale car auction, they usually don't know the detailed condition of the car. The car then is put up for sale on their car lot.
Used cars are sold "as-is" without warranties or guarantees. There Is no "cooling off" period or "right of return" laws to protect customers. Lemon laws only apply to brand new cars, not used cars.
Therefore, when buying a used car from a dealer, especially a car that only costs $200, $500, or $1000, you should always have the car inspected by a mechanic or someone very knowledgeable about cars before you buy. It might cost you $75 or $100, but it might save you from making a terrible mistake.
Many buyers of such cheap cars also get a Carfax or AutoCheck® vehicle history report, but it is generally a waste of money for older cars. What's more important is the actual condition of the car, right now, rather the fact that it might have been involved in an accident years ago.
Buy from Private Party Individuals
When you are buying a car in the $200, $500, or $1000 price range it is best to buy from an individual rather than a dealer. Dealers must make a profit to stay in business, so when they sell a car for $500, it's probably worth only $250.You could buy the same car from an individual seller for about $250.
Much of the same discussion above about buying from a dealer also applies to buying from an individual. An individual seller may or may not be aware of problems his car might have. If the car breaks down a couple of days after the purchase, it is entirely possible the seller was not aware of pending problems. But even if he did know about them, and he purposely didn't disclose them, there's little you can do. Unless you can prove he knew, you have no legal recourse.
Again, you should always have a knowledgeable person or mechanic inspect any used car before the purchase. If you discover problems later, it's too late.
When you consider that a brand new car might cost $20,000, the same car some years later will likely have a lot of miles on it and possibly some problems. High mileage, however, is not necessarily a reason not to buy. Many cars with high mileage are in great condition and can last many more miles before finally falling apart.
Many problems with older used cars can be fixed relatively easily and inexpensively. Problems with engines and transmissions are the most expensive to repair. If the only problems are things like hoses, belts, wires, brakes, or electrical equipment, these can be fixed or replaced without great expense.
Sellers of older cars with problems may simply not want to fix the problems themselves but are willing to sell at a large discount to a buyer who will do the repairs. Buyers should make sure that the selling price plus the cost of repairs does not exceed the fair market price of the car in good condition. Market values can be found at kbb.com or nadaguides.com.
Buy from Used Car Dealers
Most dealers normally don't sell older cars with high mileage, especially new-car dealers who have used-car lots. However, smaller independent used-car dealers , especially buy-here-pay-here lots, may specialize in this type of vehicle. They cater to customers who are on limited budgets. Do not expect the cars to be well-inspected or repaired, regardless of what the salesman tells you.
Used car dealers do not necessarily know the problems a car might have. We often hear from people whose cars have broken down after a few days and want to sue the dealer for deceiving them. Let's say it again, used car dealers don't make much effort to inspect or test their cars to learn what problems the cars might have. When they buy a car at a wholesale car auction, they usually don't know the detailed condition of the car. The car then is put up for sale on their car lot.
Used cars are sold "as-is" without warranties or guarantees. There Is no "cooling off" period or "right of return" laws to protect customers. Lemon laws only apply to brand new cars, not used cars.
Therefore, when buying a used car from a dealer, especially a car that only costs $200, $500, or $1000, you should always have the car inspected by a mechanic or someone very knowledgeable about cars before you buy. It might cost you $75 or $100, but it might save you from making a terrible mistake.
Many buyers of such cheap cars also get a Carfax or AutoCheck® vehicle history report, but it is generally a waste of money for older cars. What's more important is the actual condition of the car, right now, rather the fact that it might have been involved in an accident years ago.
Buy from Private Party Individuals
When you are buying a car in the $200, $500, or $1000 price range it is best to buy from an individual rather than a dealer. Dealers must make a profit to stay in business, so when they sell a car for $500, it's probably worth only $250.You could buy the same car from an individual seller for about $250.
Much of the same discussion above about buying from a dealer also applies to buying from an individual. An individual seller may or may not be aware of problems his car might have. If the car breaks down a couple of days after the purchase, it is entirely possible the seller was not aware of pending problems. But even if he did know about them, and he purposely didn't disclose them, there's little you can do. Unless you can prove he knew, you have no legal recourse.
Again, you should always have a knowledgeable person or mechanic inspect any used car before the purchase. If you discover problems later, it's too late.
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