Cars
Great Deals on Used Cars
Snap one up before demand pushes prices higher.
By Jessica L. Anderson, Associate Editor
From Kiplinger's Personal Finance magazine, June 2009
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Going the distance
If you expand your search by a few hundred miles or even nationwide, you could bag an even better bargain. Some types of vehicles are in greater supply in certain areas-convertibles in the Sunbelt, SUVs in the mountains, luxury cars in big cities.
Mark Tiernan of Denver knew he wouldn't find too many Lexus sedans in the mountains, where four-wheel-drive vehicles rule. So he bid on a 2005 LS 430 (one of our top picks; see the box on page 75) in Oklahoma on eBay Motors. After negotiating with the dealer on the phone, he purchased the car and had it shipped. For $22,000 plus $450 shipping, Tiernan got a car that originally stickered for $56,875.
By buying outside his area, Tiernan got his pick of models and saved a few thousand dollars-the dealer price on Edmunds is $26,280. It's his sixth eBay car, and he's comfortable with the process now. But he was nervous the first time around and flew to St. Louis for a test drive.
Buying long distance can save from $2,000 to $10,000, depending on the car, even after delivery charges. But the deals involve more risk. To counter a surge in fraudulent listings, eBay offers up to $50,000 in protection, although the collection process can be complex.
The best way to make sure the deal is legit is to hire a middleman. Carfax.com and eBayMotors.com list certified inspectors who can determine the vehicle's condition for as little as $100. An escrow service, such as Escrow.com, can securely transfer the funds and title, typically for $200. Shipping runs $800 to $1,200. But check Transportreviews.com to make sure the shipper, too, is legit.
Deal or No Deal?
Used Hybrids Are Priced Too High. With so many good deals out there, you might be wondering if a used hybrid is one of them. The short answer: Not really. Most hybrid models don't make it to used-car wholesale auctions in large numbers, says Tom Kontos, chief economist for Adesa, a vehicle-auction company, because dealers can make more by selling them retail. Plus, hybrids are sold in low volumes and aren't abundant in rental fleets, so the supply of used hybrids is small. For example, an Edmunds.com study that compared buying new cars with buying one-year-old models found that the 2008 Honda Civic Hybrid sells for an average of $20,167, while the 2009 fetches $21,788-a difference of just $1,621.
Another question mark is battery life. Estimates on how long hybrid batteries will last are in the range of six to eight years. No one knows for sure because the oldest hybrids on the road are just reaching that age. But the idea of buying a used hybrid only to have to replace the batteries a few years down the road is enough to turn many people off.
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Reader Comments (6)
Posted by: VJ at 05/03/2009 12:43:33 AM
Here's a site that helps buyers quickly see the cars for sale on eBay around their city. The interactive and visually rich interface makes shopping for cars a quick and fun experience. FindYourAuto.net
Posted by: JDL at 05/07/2009 12:20:33 PM
So let me get something straight, They were going to pay $27,000-plus for a 2009 Taurus and that was after a $4,000 rebate? Huh, didn't Taurus' cost like 15k a few years ago? The smartest move they could have made was to keep the 97 Accord. It was paid for and will be running long after the 08 Taurus is dead and gone.
Posted by: RJS at 05/08/2009 04:27:41 PM
JDL...loaded '09 Ford Taurus SEL with AWD stickers at $33,345. There may have been a time in late '04 where you could have driven a Taurus off the lot for $15k, but that was a significantly smaller vehicle more akin to the current Fusion and was in process of being replaced by the then new Ford 500. And while I agree their old Accord was paid for, 2008 models from any manufacturer have to meet significantly higher safety and emissions standards than their old '97 Accord did, making this a smart purchase.
Posted by: TheWholeStory at 05/10/2009 05:11:26 PM
Not the best reporting......how much did they get for the 97 accord on trade-in. The price that they paid will be influnced by the trade-in. If they lowballed the trade-in, they are likely to get a better price. This information needs to be presented as trade-in value is a negotiated item. That ultimatly affects buying price.
Posted by: Bob at 05/11/2009 10:13:26 AM
While I would love a hybrid,I am yet to see a deal on one, new or used. I would still pick a smaller car with better fuel mileage over any hybrid out there. If the economy does recover, we know that high gas prices will return. Remember, that even with $4 gas, $4000 saved on a vehicle purchase price would buy 1000 gallons of gas. At 30MPG that will take you 30,000 miles. Too many of my acquaintances aren't considering the big picture.
Posted by: mike at 04/26/2010 12:26:27 PM
...I'm always amazed that when real news is somewhat slow, 'journalists' drag up something about how dealers make money. no schit? yeah, dealers make money or they won't be doing business with you. no different than your grocery store, your doctor, your lawyer, your pharmacist, your jeweler, your dentist, your utility companies, your bank.......it's really odd, how that all works, eh? the problem is, these articles do nothing to ever promote having a healthy and profitable relationship between the customer and the dealership. if it's always going to be based upon getting under the skin of the dealer, it isn't that smart to nitpick. be aware of course, but don't try going after holdback and advertising, etc. it isn't going to work. and for ms anderson.......why don't you find some real news to report on. i bet you would last about 2 days if YOU were a car salesperson. and yes, that is a challenge.