Questions and Answers for Saving
Money on Transportation
© 2002 by
Kyle Busch,
Adapted from "Drive the Best ..."
With a soft economy and an uncertain
stock market, more and
more people are keeping an eye on spending
and they are interested
in getting more for their money.
Kyle Busch has over a quarter-century
of experience saving money on transportation.
He answers ten commonly
asked questions about purchasing
vehicles and saving money.
(Q) Why does it
make sense to consider buying used vehicles?
(A) Transportation
is a depreciating asset that loses value, especially
during
the first three years of ownership. Buying a 2- to 3-
year-old
used vehicle will provide about a one-third reduction in
the
cost. Additionally, the initial owner will have "test driven" the
vehicle
for the second owner.
(Q) What
is a common error than many people make when buying
transportation?
(A) A common
error when buying transportation involves buyers not
thoroughly identifying their
transportation needs and then purchasing
a
vehicle that does not entirely meet those needs. For
example,
a buyer might
choose a mid-size family sedan that satisfies many
of
his or her needs. However, six months after the purchase, the
buyer
realizes that another vehicle in the same category provides
a softer
ride, better fuel economy, etc. and would have better
satisfied
his or her driving needs.
(Q) After identifying
transportation needs, what should buyers do next?
(A) It is
worthwhile to visit a local public library to research which
vehicle(s)
will indeed satisfy specific transportation needs and then
identify
those that have good reliability ratings.
(Q) Is it
best to buy a vehicle from a specific source?
(A) Each transportation
source has certain advantages and disadvantages.
However,
the important thing to keep in mind is that a number of vehicle
sources should
be considered (i.e., private owners, rental car
companies,
company vehicles, off lease vehicles, new car dealerships,
bank repossessions,
the Internet). When buyers inform a vehicle
source
that they are also considering the other sources, better
deals are
usually obtained.
(Q) What questions
should buyers ask by telephone to better determine
if a vehicle is worth their time to investigate?
(A) -
How many miles has the vehicle been driven
(the average is about 11,000 to 12,000 miles
per year)?
- Is the transmission an automatic, a semi-automatic,
or a manual? If the transmission is not what the buyer
wants, there is no need to ask further questions.
-
Has the vehicle been repainted and if so, why?
It is best to avoid repainted vehicles.
- When are the next state inspection and emissions
standard test due? The vehicle should have a
minimum of at least eight-months remaining until
the next required state inspection and
emissions test.
- How often were the engine oil and the oil filter
changed, and who performed the service?
An acceptable answer would be every
3,000 to 3,500 miles or about every
three to four months.
- Are you the original owner of the vehicle?
Original owners tend to take better care of
vehicles.
- What is the reason that the vehicle is being
sold? It is encouraging if the individual is
the original owner and if he or she is
planning to again buy the same make of
vehicle.
(Q) What
if the owner is lying when answering questions
about a vehicle?
(A) It
is worthwhile to obtain as much information about a
vehicle as possible, therefore, buyers should ask questions.
The interior and exterior inspections, and vehicle test-drive
help to verify the information provided by the owner.
(Q)
How long should the vehicle test-drive take?
(A) It
is worthwhile to test-drive a vehicle for a minimum of 20 minutes
on two separate occasions. The test-drive should include a variety
of roads that buyers will drive day-in and day-out.
(Q)
Should buyers take a vehicle to a mechanic before making a
purchase?
(A) A
mechanic should confirm what buyers have concluded after
they have inspected and test-driven a vehicle. Buyers should
request that the vehicle be raised on a lift for the mechanic's
inspection and that the mechanic test-drives the vehicle.
(Q)
Of course buyers what to save money, but what protection
do they have when purchasing a 2- to 3- year-old vehicle?
(A) Most
vehicles have manufacturers' bumper-to-bumper warranties
of three years-36,000 miles or four years 50,000 miles in addition
to five years-60,000 miles on the drive train (i.e., engine and
transmission). The warranties are transferable to buyers who
purchase the vehicles. The warranties begin on the date that
vehicles are first purchased from new car dealers.
Buyers
best interests are also served when they have performed
research
to identify vehicles that have favorable reliability ratings.
(Q)
What is a long term benefit of saving one-third when buying vehicles?
(A) The
average new vehicle costs about $15,000 to $18,000. Most
2-
to 3- year-old vehicles will easily provide five or more years
of trouble free driving. If buyers invest the savings (i.e., $5,000
to
$6,000) and they are able to add $800 per year toward transportation,
after a five-year period, they will have the money needed to purchase
another 2- to 3- year-old vehicle without straining their budget.
Kyle Busch is the author
of "Drive the Best for the Price: How to Buy
a Used Automobile, Sport-Utility
Vehicle, or Minivan and Save Money."
Kyle Busch and his 1986 Volkswagen Jetta
A used vehicle that is closing in on 300,000 miles
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