{"id":220,"date":"2011-10-10T06:30:32","date_gmt":"2011-10-10T11:30:32","guid":{"rendered":"http:\/\/gunscarstech.com\/?p=220"},"modified":"2011-10-10T06:30:32","modified_gmt":"2011-10-10T11:30:32","slug":"how-to-buy-a-cheap-car","status":"publish","type":"post","link":"https:\/\/gunscarstech.com\/?p=220","title":{"rendered":"How to buy a cheap car"},"content":{"rendered":"

As a huge proponent of driving sub-$5000 cars, I often get asked to help people pick inexpensive cars. I have been involved in probably 30 car purchases in the last 8 years, so I have a lot of experience. This reminds me of a quote:<\/p>\n

Good judgement comes from experience. Experience? Well, that comes from bad judgement<\/p><\/blockquote>\n

Here are some pointers that come from my, er, experience:<\/p>\n

<\/p>\n

WHEN TO BUY A CAR<\/strong><\/p>\n

You should start looking for a car when it becomes clear to you that regular repair bills are in your future or it is about to die completely. For example, if last month your water pump busted and this month your fuel pump went out, it’s probably time to start looking. Hopefully you can find a replacement before your current car dies completely. I also use the 200,000 mile mark as a point to move to a different vehicle, but that’s a personal preference.<\/p>\n

What is the definition of a car that dies completely? That’s when the cost of repairing the car is more than the car is worth, or more than you are willing to spend on it. I had a 1996 Saturn SC2 with 175,000 miles on it lose it’s transaxle while driving on a major thoroughfare. Parts came off the car at speed<\/em>. The repair cost was somewhere around $2800. The car was worth maybe $2500, so I sold it to a local mechanic for $300 and bought another vehicle a day or two later. The car also has to be non-functional for this to apply: Just because your $1500 car needs a $2000 retrofit to get the AC working again doesn’t mean your car is dead. The purpose of your car is to get you from A to B and back to A. Everything else is a luxury.<\/p>\n

I knew that Saturn was about to have serious problems, but I didn’t start looking at cars until after it died. Things would have been much less stressful for me if I had started looking sooner.<\/p>\n

START WITH A BUDGET IN MIND<\/strong><\/p>\n

First of all, you won’t be borrowing money for a cheap car. The number 1 reason is that you’ve given up debt, but the other reason is that banks don’t do used car loans for cars in this price range. The only way to finance one of these cars is with dealer financing which would put you in the 25% APR range. Ouch.<\/p>\n

So, how much do you have? No matter how much it is, we can work with it. The best car deal I ever had was one that I bought for $800. I sold it a year later for…$1000. And it was still a mechanically sound car that I would’ve trusted on a cross-country trip. If you are in need of a car RIGHT NOW, whatever you have is whatever you have. Just remember that this car will be temporary, probably 6-12 months.<\/p>\n

If you have some time before you’ll need a car then you are in a great position. First, you will be able to spend more because you will have saved up more money. When I bought that $800 Neon, I immediately started saving for a replacement. I picked $4,000 as my goal and started looking at my options.<\/p>\n

Don’t forget about sales tax and new tag fees! Government has to get it’s cut, you know!<\/p>\n

FIND OUT WHAT YOUR BUDGET WILL GET YOU IN YOUR AREA<\/strong><\/p>\n

Starkville, Mississippi is not Nashville, Tennessee is not Buffalo, New York. Cars will bring different prices in different areas. Start trolling craigslist for cars in your price range. If you have $4000, search for cars for sale by owner in the $2000-$6000 range. You’re not going to buy any of these cars, but you want to get the lay of the land, so to speak. You might discover that for $3000 you can get a 12 year old Honda Civic with 150,000 miles on it, or that for the same price you can get a 7 year old Toyota Echo with 90,000 miles on it. You do this to get an idea of what a good deal is. Ever think you got a steal on a gun you knew little about, and then found out later you got ripped off? Cars are the same way.<\/p>\n

PICK A CAR<\/strong><\/p>\n

You have your budget. You know what that will buy you in your area. Now it’s time to pick the kind of car you want! You can say, “I want a compact japanese car with good gas mileage,” or you can say “I want a blue 1998 Honda Civic DX with chrome wheels and a sunroof.” When we bought my wife’s last car, her criteria were 4 door Honda Accord with less than 170K miles on it. The criteria I used for my last car was 1999 Jeep Cherokee 4 door with automatic transmission, NP242 Transfer Case, and a ChryCo 8.25″ rear end with less than 120,000 miles on it.<\/p>\n

We both found what we were looking for. She got hers in 3 days. Mine took 4 months. The more specific you get, the harder it is to find what you are looking for in your price range. Be sure to research common problems with the make and model you choose!<\/em> The last thing you want to do is buy a 2000 Toyota Camry and THEN find out that year has a serious problem with engine failure<\/a>.<\/p>\n

NOW, WE WAIT<\/strong><\/p>\n

Okay, you’ve got a budget. You have the cash set aside. You know the car you want. You know how much they go for in your area. You know what common problems that car has and how to check for them. What do you do now?<\/p>\n

Do a search on craigslist for the car you want, then add the RSS feed for that search to your feed reader. This will notify you every time someone posts a car that meets your criteria. Protip: Always put a minimum price in, even if it’s $100. Otherwise you’ll get cars with no price listed, and those are usually dealer cars way out of your price range.<\/p>\n

Now, when I decided on my Jeep, I knew I could get it for $4000, because I had seen one that met my criteria at that price. At the time, I didn’t have $4000 so I didn’t buy it. I had to *gasp* wait!<\/p>\n

AFTER IDENTIFYING A POTENTIAL CANDIDATE<\/strong><\/p>\n

When you find one you want, contact the seller. Things you should verify are:<\/p>\n