CHOOSE THE RIGTH VEHICLE

How to assess your needs and find the right information.


The used-car market alters splendid buying opportunities, for the simple reason that cars decline in dollar value
mucn faster than they decline in driving value. A three·year· old car may sell for just hall ui what it cost new, but its performance and the overall driving experience are likely tobe little changed. Besides that.the used-car market is huge,roughly twice the size of thenew car market. That's both ablessing and a curse. On the one hand, there are abundant


choices at every price level.but on the other, it can betough to sift through the 40 odd brands and the hundreds of model and trimine vari-ants. This book can help you sort through the clutter.

The key to making the right choice is finding the vehicle that best fits your needs. Factors you’ll consider include
price, performance, comfort, reliability, safety, and fuel economy. In these pages we lay out a systematic approach to assessing your needs and  matching them ub to a manageable number of candidate cars. Our recommendations are based on impartial, hands on testing, on the largest pool of reliability data avail-

able anywhere, and on our car experts' accumulated knowledge. This will help narrow your list by guiding you

to the best models and steering you away from those that don't measure up. It will also show you where to find the information you need to make a smart buying decision.

WHY BUY USED?

Used vehicles are often the best values you’ll find in the automotive market. This is espeecially true for models just two or three years old. Not only is the price lower than a comparable new car's, but continuing ownership expenses sttch as collision insurance and taxes are lower, and a two- or threee year old used vehicle has already taken its biggest depreciation hit. In addition, buying used is a way to get a nicer car than you'd be able to afford new.

But buying a used vehicle means finding the right balance of value and risk. Following are some issues to consider.

 Reliability. One thing that has made used cars more appealing is their improved reliability. In an analysis of annual subscriber surveys over the past few years we found that five years old vehicles in the latest survey had one third fewer problems than the nveeyeareold vehicles we looked ar in 2006. Years ago rust and exhaust system problems were common, but that's no longer the case. As a result, buying a latevmodel used vehicle is not as much of a risk as it used to be.

 When properlymaintained, todays vehicles should easily surpass 100.000 miles without a major over haul, and many could reach 200,000 miles. 

Warranties and repairs. Although used cars are more reliable than ever, maintenance and repair costs are important considerations. 

In the first two or three years ota car’s life, it has fewer problems and is typically covered by a comprehensive warranty. A used car, on the other hand, is usually out of warranty or close to it. You can expect not only more problems as time goes on, but more costly ones as the years pile up.

This means that owners will have to pay for repairs out of pocket. Most repairs will be for wear parts like tires, brakes, and batteries. Bur even if you replaced all those things the moment you bought a used

car, the savings versus the new car alternative would more than compensate.

There is always the risk that you'll buy a lemon. Even a car with a great reliability history can be a poor example, or it may have been abused. neglected. or damaged by a previous owner. 

inspected by a qualified mechanic. you can inoculate yourself against nasty surprises. Depreciation. A major disadvantage of buying a new car is the rapid depreciation

it undergoes in the nrst few years. Models typically lose about 47 percent of their value

inthe hrst three years, compared with Z4 percent over the next three. But this varies greatly among models. The 2007 BMW 32Bi, for example, has held its value relatively well (about 43 percent depreciation over

the first three years). while the 2007 Lincoln Town Car has depreciated more rapidly tatwut az permit).

Several factors determine depreciation. including the model’s popularity. perceived quality. supply. and whether or not the vehicle belongs to the current design generation. The average depreciation on a

SZZSOO vehicle leaves less than $15,000 ($14,575) after three years, a huge hit in residual value.

Interest rates. Loans for new cars usually have a lower interest rate. but the ditference is often not a major concern. In April 2011 the national average for a 36month new car loan was about 4.28 percent,