Used Car Value|
History Vehicle Report
There are times, when you need a car but don't have that kind of a budget. It is in those times that you can buy a used car. The first salient point of buying a used car is that you will end up saving a lot of money. After 3 years of driving, a new car is worth only 60-70% of the original price and it is called depreciation. The more a car is sued, the more wear and tear of the engine, the more the depreciation.
Buying a used car or truck is like a gamble. You never know what you will get but if you are buying a used car then you need to keep and check certain things like:
- Research: Do some detailed research. Go to used car websites and find out the cars they are selling and their price. If you have chosen a few cars then try to talk to the owners or the dealers and get information on the condition of the car.
- History: Once you have received information from the dealer or owner of the used car or truck, compare it with the car history report. You can find comprehensive car history reports from car history websites. Once you have the report, there is a possibility that you would have to put a cross on more than half the cars on your check list. There are times, when cars have had accidents, damages and even recurring problems. Even if the dealer or the owner doesn't provide you with the complete information, the history vehicle report will.
- Insurance: Talk to an insurance company for providing insurance on the used car. The car insurance will vary depending on the model, year and make of the car.
- Warranty: New cars come with an original warranty but you won't get an original warranty with a used car. The next best thing to do is get an extended warranty. The original warranty covers a new car for 3 years or 36,000 miles. An extended warranty will cover the service or repair costs of the used car for a limited period. The warranty company will not pay for all the repairs, but only those mentioned in the contract.
- Finance: There are insurance companies who will finance used cars. You can directly approach the finance company or you can go through the used car dealers.
USED CAR VALUE
There are more people buying used cars today than new cars. According to a study by the Bureau of Transportation Statistics, 13.6 million new cars and trucks were bought in 2004 but the number of used cars bought was far more at 42.5 million. The trend seems to be moving towards the used car segment.
A used car is basically an automobile that has had at least one owner. The user car may be a damaged/salvaged car, it may have previous accident reports, it may have been damaged, but whatever it has been through once, it is up for sale it will always look good from the outside. Some of the factors are engine, history of wear and tear, model, and make.
There is a progressional depreciation that takes place in new cars, as they grow old. Even manufacturer warranties are generally for 3 years. Therefore, anyone selling a car, which is more than 3 years old, will qualify for depreciation and the price will accordingly go down. The easiest way of calculating depreciation is dividing the purchase price of the car by the expected life expectancy of the car.
For example, a 2003 Mini Cooper S had an MSRP of $24,000 but after 5 years, the value of the car is $12,270. Therefore, if you are buying a 2003 Mini Cooper S, then you'll know the price difference. However, depreciation is not everything. There are other factors too, like the history of the car. If you get a CARFAX report then you will know if the car has been severely damaged before or not. It will also reveal the number of accidents. If your Mini Cooper has had three accidents before today, then you can bargain with the used car dealer or the car owner to lower the price. In all probability, the damaged car might have some problems that will resurface on a regular basis.
The model and the make of the car are also price-determining factors. If the actual release date of the car is 2000 and it was bought in 2001, then the car is not 5 years old, it is actually 6 years old. The other factor that affects the price is the model. You need to know whether the model is still available in the new car market or not. Some models are not available in the market and hence finding their spare parts becomes a tough job. If you are able to consider all these factors, then you can bring the price down to almost $10,000 for the Mini Cooper.
HISTORY VEHICLE REPORT
History vehicle reports are reports that provide complete information and history of used cars. If you are planning on buying a used car then you might not know the complete history of the car. Has it caused any accidents? What are the common trouble spots in the sued car? These are some of the questions that you need to ask before you can pick up a used car. A history vehicle report will provide you with all the answers. Normally a history vehicle report includes the following:
- Hidden damages caused by accidents
- Car thefts
- Lemon history
- History of odometer and false readings if any
- Flood damage
- Major trouble spots
- Replacement cost average
- Safety ratings
- Recall information
- Expert Opinions : This varies from website to website
You can start from the auto consumer guide website and get details about how to get a history vehicle report. All you need is the Vehicle identification number (VIN) and you can download a complete history vehicle report on any vehicle. It is not difficult to locate the vehicle identification number and you can check the following to find the VIN:
- The Car insurance policy
- The car's registration card
- Drivers side dash window
- Driver's side door post
The history vehicle report is also known as the lemon car check. When we say this car is a lemon, it means that the car has defects, which continue to hamper its performance on a recurring basis. There are certain benefits involved in getting a lemon car check and they are:
Car History: You will get complete information or the history vehicle report. It is not necessary that a vehicle that looks great from outside may work great from inside. Hence ordering a check on the vehicle and ordering a history report will clarify if the car has any recurring problems or not. Using a VIN, you can get a history vehicle report from many automobile or used car websites.
Lemon Laws: The lemon laws have been enforced to protect consumers who buy a car that shows problems immediately after being bought. It can be a technical fault or a physical problem. Lemon laws are different for every state and you need to first find out what the lemon law is for your state before you sign off the deal.
Now if the car has a recurring defect then you can use the lemon car check to identify the defects, get it repaired or don't invest in it at all. This will save you time, money and many future headaches.