Money & The Car

Cars - It is the Season to Save Money

Summer is the season when many people purchase

transportation. The weather is warm and there is plenty

of sunlight.

The cost of new transportation is expensive. However,

there are several used vehicles that you might want to

consider. The following vehicles all have good ratings

and current market forces have made them available at

very reasonable prices.

Four vehicles worth your consideration:

1. The Toyota Camry has been one of the best vehicles

    in America for years. New Camry LEs cost $18,500-$25,000.

    Now that the redesigned 2002 Camry is circulating in

the market, you can buy (if you shop carefully) a used

2000 Toyota Camry LE with 25,000-30,000 miles for about

$10,500-$11,500. I consider this car to be an excellent value

for this price. The vehicle should still have at least 6 months
remaining on the manufacturer's bumper-to-bumper warranty

and 2.5 years remaining on the power train (engine and

transmission) warranty. This vehicle can be driven for

hundreds of thousands of miles.

2. The Honda Accord has also been one of America's best

selling automobiles. New Accord LXs cost $18,500-$26,000.

The Accord will be redesigned for 2003 (due out in about

September 2002).

You can buy (if you shop carefully) a 2000 Accord LX with

25,000-30,000 miles for about $11,500-$12,500. This vehicle

should also have at least 6 months remaining on the

manufacturer's bumper-to-bumper warranty and 2.5 years on

the power train. This vehicle can also be driven for hundreds

of thousands of miles.

3. The Mazda 626 has also been a reliable vehicle. New 626 LXs

cost $17,500-$24,000. The 626 will be redesigned for 2003

(renamed the "6").

Mazda does not quite have the name of the Toyota or the

Honda.You can buy (if you shop carefully) a 2000 Mazda 626 LX

with 25,000-30,000 miles for about $9,000-$10,000. This vehicle

should also have at least 6 months remaining on the manufacturer's

bumper-to-bumper warranty and 2.5 years on the power train. This

vehicle can provide many years of dependable transportation.

4. The Nissan Altima is also a pretty good value. New Altima 2.5s

cost $17,000-23,000. The 2002 Altima was redesigned to be a

much larger car than the previous model.

If you are on a transportation budget, you can buy (if you shop

carefully) a 1995 Altima GXE with 60,000-75,000 miles for about

$3,500-$4,500. At this age and mileage, the vehicle will likely not

include any remaining manufacturer's warranty, however, the Altima

is quite reliable and economical to drive. This car can provide a

number of years of good transportation service.

If you are in the market for a vehicle, do your homework. Consult

Consumer Report's automotive issue (April). Also, be sure to read

a couple of archived new vehicle road tests (review road tests that

were conducted at the time the vehicle was new) on the used vehicle

of interest in auto magazines (many are archived at your local library)

or Internet sources such as Car and Driver, Motor Trend, Road & Track,

or MotorWeek. Information from the road tests will allow you to zero in

on which of the vehicles discussed above will be the best for you.

For example, if you prefer a softer ride consider the Camry; if you

prefer a stiffer more European ride, consider the Accord; and if price

is the major consideration, consider the Mazda or the Altima. Last,

but not least, if you are going to buy a 2 to 3 year-old vehicle, try to

get the 2000 model rather than the 199... model. Years down the road

when you sell the vehicle, the 2000 model will be worth more than the

"past century" vehicle.

How to Evaluate a Used Vehicle:
Kyle Busch has over 300,000 miles on his 1986 Volkswagen

Jetta - a used vehicle that he bought in 1991 for $2,600. Busch is the

author of Drive the Best for the Price: How to Buy a Used Automobile,

Sport-Utility Vehicle, or Minivan and Save Money. 1 800 839-8640 or

www.drivethebestbook.com. The web site accepts all transportation

questions.

Questions and Answers for

Saving Money on Transportation

Adapted from "Drive the Best ..."

With a soft economy and an uncertain stock market, more and

more people are keeping an eye on spending and they are interested

in getting more for their money. Kyle Busch has over a quarter-century

of experience saving money on transportation. He answers ten commonly

asked questions about purchasing vehicles and saving money.

(Q) Why does it make sense to consider buying used vehicles?

(A) Transportation is a depreciating asset that loses value, especially

during the first three years of ownership. Buying a 2- to 3-

year-old used vehicle will provide about a one-third reduction in

the cost. Additionally, the initial owner will have "test driven" the

vehicle for the second owner.

(Q) What is a common error than many people make when buying

transportation?

(A) A common error when buying transportation involves buyers not

thoroughly identifying their transportation needs and then purchasing

a vehicle that does not entirely meet those needs. For example,

a buyer might choose a mid-size family sedan that satisfies many

of his or her needs. However, six months after the purchase, the

buyer realizes that another vehicle in the same category provides

a softer ride, better fuel economy, etc. and would have better

satisfied his or her driving needs.

(Q) After identifying transportation needs, what should buyers do next?

(A) It is worthwhile to visit a local public library to research which

vehicle(s) will indeed satisfy specific transportation needs and then

identify those that have good reliability ratings.

(Q) Is it best to buy a vehicle from a specific source?

(A) Each transportation source has certain advantages and disadvantages.

However, the important thing to keep in mind is that a number of vehicle

sources should be considered (i.e., private owners, rental car

companies, company vehicles, off lease vehicles, new car dealerships,

bank repossessions, the Internet). When buyers inform a vehicle

source that they are also considering the other sources, better

deals are usually obtained.

(Q) What questions should buyers ask by telephone to better determine

if a vehicle is worth their time to investigate?

(A) - How many miles has the vehicle been driven

(the average is about 11,000 to 12,000 miles

per year)?

- Is the transmission an automatic, a semi-automatic,

or a manual? If the transmission is not what the buyer

wants, there is no need to ask further questions.

- Has the vehicle been repainted and if so, why?

It is best to avoid repainted vehicles.

- When are the next state inspection and emissions

standard test due? The vehicle should have a

minimum of at least eight months remaining until

the next required state inspection and

emissions test.

- How often were the engine oil and the oil filter

changed, and who performed the service?

An acceptable answer would be every

3,000 to 3,500 miles or about every

three to four months.

- Are you the original owner of the vehicle?

Original owners tend to take better care of

vehicles.

- What is the reason that the vehicle is being

sold? It is encouraging if the individual is

the original owner and if he or she is

planning to again buy the same make of

vehicle.

(Q) What if the owner is lying when answering questions

about a vehicle?

(A) It is worthwhile to obtain as much information about a

vehicle as possible, therefore, buyers should ask questions.

The interior and exterior inspections, and vehicle test-drive

help to verify the information provided by the owner.

(Q) How long should the vehicle test-drive take?

(A) It is worthwhile to test-drive a vehicle for a minimum of 20 minutes

on two separate occasions. The test-drive should include a variety

of roads that buyers will drive day-in and day-out.

(Q) Should buyers take a vehicle to a mechanic before making a

purchase?

(A) A mechanic should confirm what buyers have concluded after

they have inspected and test-driven a vehicle. Buyers should

request that the vehicle be raised on a lift for the mechanic's

inspection and that the mechanic test-drives the vehicle.

(Q) Of course buyers what to save money, but what protection

do they have when purchasing a 2- to 3- year-old vehicle?

(A) Most vehicles have manufacturers' bumper-to-bumper warranties

of three years-36,000 miles or four years-50,000 miles in addition

to five years-60,000 miles on the drive train (i.e., engine and

transmission). The warranties are transferable to buyers who

purchase the vehicles used. The warranties begin on the date

that vehicles are first purchased from new car dealers. Thus,

it is important to determine the date when a vehicle was

initially purchased.

Buyers best interests are also served when they have performed

research to identify vehicles that have favorable reliability ratings.

(Q) What is a long term benefit of saving one-third when buying vehicles?

(A) The average new vehicle costs about $15,000 to $18,000. Most

2- to 3- year-old vehicles will easily provide five or more years

of trouble free driving. If buyers invest the savings (i.e., $5,000 to

$6,000) and they are able to add $800 per year toward transportation,

after a five-year period, they will have the money needed to purchase

another 2- to 3- year-old vehicle without straining their budget.

For Additional Information:

Kyle Busch is the author of "Drive the Best for the Price: How to Buy

a Used Automobile, Sport-Utility Vehicle, or Minivan and Save Money."

1 800 839-8640 or www.drivethebestbook.com. The web site accepts
all transportation questions.