QuestionQUESTION: I had been driving a 2005 Chevrolet Cavalier less than a year from the time I purchased it for $3,500 in late February of 2011.
Coming home from a friend's Superbowl party, I was struck head-on in my lane by a drunk driver. The car had been totaled (fortunately I was unharmed), and I am now playing the waiting game with regard to a settlement from the other driver's insurance company.
Aside from that, just the thought of what I had to go through to finally find a car like this last year, and now having to start all over at square one gives me a sick feeling in the pit of my stomach.
Do you have any advise as to whether it's better to buy from a private owner or a dealer? The Cavalier was purchased as a trade-in from a used car dealer who had me use his on-site mechanic to inspect the vehicle (he would not allow me to take it off the lot to my own mechanic. Conversely my own mechanic was too busy to come with me to the dealership. I purchased the car and subsequently had to put more than $1,500 worth of repairs into it in order to get it to the near perfect working condition it was before the accident. Obviously many of the expenses could have been averted had there been a more lenient policy on the part of the dealer.
Finally, a number of people including my wife are suggesting it would be better for me to lease a new (or new/used) car for “x” amount of dollars per month over a designated period of time (most are from 2 to 3 years), with the option to trade it in or buy it after the period is up.
My pet peeve is that I don’t like to be indebted to any purchase if the price I have to pay per month exceeds 5 years or more, especially since my work isn’t steady.
In your opinion, what are the pros and cons of leasing a car vs. buying?
ANSWER: Hi Bob,
Sick feeling in the pit of my stomach, lol, yes I think I know what you talking about. Let's start with your first question private or dealer, read this link on my website and then you decide http://www.usedcartips.org/privatevsdealer.html
You got screwed for about $1500. worth of repairs on your last purchase because you made one huge major mistake, and that was not walking away from the deal when not allowed to take it for an independent inspection.
Regarding a lease,,, without going into detail,,, please,,, simply stay away,,, doing a little homework, buying is the answer in your case, start with the top portion of this link http://www.usedcartips.org/TESTDRI.html
Bob, study my site, and when you find that magic car send me a link before you commit and I will check it out for red flags
Ray
---------- FOLLOW-UP ----------
QUESTION: Hi Ray,
So far I've downloaded 8 or 9 articles from your site. I have found them most educational, eye-opening, and some of your stories outright amusing (like the one about the cardboard box and your test car taking off on a test drive... with your feet in the back seat, had me wetting my pants).
Just to give you an update on my situation. After the accident, I remained in a state of solitary confinement at home - with my only source of transportation piled up like a heap of srap metal and rubble in the driveway. Late in the day Friday, February 24th, the claims handler from the other guys insurance company called me with a settlement figure plus authorization for a rental car for 10 days with Enterprise.
This morning (Monday) I was picked up and driven to their local agency. Given the pick of the litter, I chose a 2010 Honda Civic over a 2011 Toyota Prius with fewer miles (what a joy to be back "On the Road Again", aka Willie Nelson)!
I have yet to begin my car search and have so far treated your words of advice like the Holy Grail for buying a new used car. I have already ruled out leasing and buying from a private seller, and have learned not to make the same mistake I did this time last year - when the used car dealer disallowed me from taking the car to my own mechanic and I ended up shelling out $1,500 in repair bills. I'm also considering Govt. auctions, and will definitely use AutoCheck over CarFax when the time comes, hands down!
If you don't mind, I would like to keep my correspondence going with you until I've found the car of my dreams.
My question for you this time is the same one I asked the gal at the Enterprise agency this morning: "Can I buy a car Enterprise doesn't want to use in their rental fleet anymore?"
Basically she told me that Enterprise's policy is to "roll-over" their cars every two years, as today I could not rent a car older than a 2010 if I tried. The pick of the litter (approximately the first 10%) goes to their own car sales division, who will apply the needed repairs and maintenance before selling at the true book value. She said the crumbs, i.e., or the remaing 90% get divided among bids from franchise dealerships and used car dealers, who will mark up the cars they buy by (I think she said) around 400% and resell for a nifty profit.
I'm sorry if you already covered this topic and I failed to see it at your site, but...
if you haven't already done so, what is your advice regarding buying from a rental car agency's used car divisions, such as an Enterprise, Avis, etc.? Thanks Ray.
Bob
AnswerThanks for your kind comments I hope you pass on my site to friends so that less consumers will get screwed and learn the process.
The gal at Enterprise got her facts upside down. Dealers bid on the cream,,, the crumbs stay with the Enterprise for uneducated public buyers that may just have to lay out $1500. after the fact " lol " another story another day how that works with rental units for sale via dealer auctions.
I think you know the process now,,, Checking fair market value - History - Test drive - mechanic - negotiate,,, Yes do keep me up to date, this thread getting to long,,, e-mail me at paulsenray@yahoo.com or post in my forum,,,,,,,,,,,,,,,,good Luck
