New or Used?
A lot of new things are happening in the used car market.
As many as 45 million “previously-owned” vehicles will be
sold in the U.S. this year. That’s three times the size of the new
car market. But what's changing lately is the quality of the
vehicles rolling onto used car lots. Sure, you can still find some
creaky old hulks guaranteed to give you trouble. But you'll also
find a lot of two and three-year-old off-lease vehicles that have
been well maintained and carry extensive, like-new warranties.
“The risk of buying a new car has gone down,” says auto
industry analyst David Andrea, of Detroit's Roney & Co. "You
have newer, better products to choose from, and in many
cases, the warranties to support them.”
Take General Motors’ new Certified Used Car program. It's
designed to promote GM products that are less than four years
old with no more than 60.000 miles on the odometer. Every
vehicle that qualifies is put through a 110-point inspection and
repair program. Worn brakes are fixed, tires replaced, dings
filled and repainted, explains Tom Williams, general manager of
Lou Fusz Buick in St. Louis. His dealership spends an average
$800 to prepare a previously-owned car carrying the Certified
sticker, twice as much as the other used vehicles on his lot.
Then they’re backed by extended factory warranties with the
same breadth of coverage as if they were new To wrap up the
package. GM throws in a three-day, 150-mile. money-back
guarantee. “We want the customer to feel as much as possible
like they got a new car," says Williams.
GM’s Certified Used Car program isn't completely unique.
Vehicles covered by the Lexus used car program get an
extended warranty and a roadside assistance program. There's
also six months of free basic service tossed in, including the
first oil change— the same as you get with a new Lexus.
BMW's program even throws in trip interruption protection.
Break down when you’re more than 100 miles from home, and
the automaker will pop for a hotel, a rental car. even airline
tickets, if that's what it takes to get you to your destination.
Be aware that all those extras are likely to be passed on in
the price tag. Vehicles that go through certification programs,
such as GM's. are usually more expensive than comparable
cars without the inspection-and-repair work. For a car that's
gone through the Lexus Certified Pre-Owned Program,
could pay as much as $1000 more. But company
stress that you're likely to recover those savings in
lower repair bills.
So shop carefully. Indeed, the best advice you can
when you shop for a used car is “buyer beware,"
applies whether you're shopping at one of the 500 dealers
participating in the GM program or buying a car from a family
friend. Some common sense guidelines will help you
separate the “creampuff” from someone else’s cast-off
lemon.
“The cost of owning and operating a used car will be 50
percent less than that of a new car, primarily because you're
not absorbing the tremendous, first year of depreciation,”
says consumer activist Jack Gillis, author of the “Used Car
Book." “The downside is that you have to do more home
work.”
There are some tip-offs to trouble, says Gillis. Look for
rust or things like unevenly worn tires, which could suggest
problems with the car's suspension. Check under floor mats
and the carpeting in the trunk, and let your nose tip you off to
mold or mildew. Always take a test drive, and give the car a
"stress test,” by jouncing it over some rough potholes. In the
process, make sure everything works. Turn the radio on, and
if there’s a cassette player, pop in a tape. Even if it’s the
middle of summer, turn the heater all the way up, then the air
conditioning all the way down.
If available, ask for the car s service record to see if it's
been carefully maintained. Regular oil changes are critical,
though today's cars seldom need full tune-ups. Check the
title closely to see if there are signs of altered information,
and if the numbers on the odometer don't line up. Be careful:
The mileage might have been rolled back.
Finally, if you're comfortable with the car. take it to your
own mechanic for a closer inspection. It’s the best way to
discover hidden problems, like a failing water pump or a
faulty transmission. “The $65 to $70 you're likely to spend is
your best warranty.” Gillis emphasizes.
Obviously, some brands are more reliable than others.
Gillis says that "as a group. Japanese cars typically hold up
better, but they may not necessarily be a better value,”
because they typically cost more than a comparable
domestic model.
There's no way to ensure that two otherwise identical cars
will be in the same condition. But by following a few logical
rules, you'll improve your odds of driving home a creampuff.
Chrysler Concord
LHS. The Chrysler 300M sedan, a sporty,
slig h tly d o w n siz e d v ersio n o f th e
Concorde, is also scheduled to make its
model debut soon.
Chrysler has offerings aplenty from the
truck side, too. Look for the Q u ad Cab
Ram, the industry's first dual rear quarter
doors. T he new Dodge Durango, hailed
by Chrysler designers as a “smart-sized”
com pact sport-utility vehicle with more
power and the capability to accomodate
three rows o f seats and up to eight pas
sengers with room for luggage.
Dodge Durango
Oldsmobile Intrigue
Cadillac Seville S T S
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