Need advice on buying new/used car

[frannn]

Our car was struck hard in the rear while at a light...long story short insurance co is considering it totaled but we're only getting about 4K cause it is fairly old and lots of mileage. We'd just repaired with 1500 the week before the accident . Anyway, we now have to purchase a car this week using that $ as a downpayment. Really cant take on a 500/month car loan but DH wants a Chevy Traverse...any advise on how to save $ and avoid a lemon if we get a 2016/2017?

 

[kymom99]

Buy certified used

 

[Klayfish]

Sorry to hear about the accident. Hope I can help, this is right up my alley.

Is your heart set on the Traverse? It's OK, but not great. Is your heart set on an SUV? If you put $4k down, you'd be looking somewhere around $350/month give or take for a base model used Traverse on a 5 year loan. If you want a high trim level, you'll probably be closer to that $500 number. A lightly used 2 year old Traverse will sell around (roughly) $20k for base trim and $30k+ for top trim.

Getting a CPO (certified pre-owned) is great if you can. Otherwise, shop around. Broaden your search to more than just the nearest dealer. Search within 100 miles, 200 miles whatever you're willing to do. You can easily have dealers start bidding against each other and grab a really good price. I buy cars all the time, from all over the place, and this works extremely well for me. Just bought my current car a few months ago and drove 350 miles to get it...but saved $3000 over what local dealers wanted.

EDIT: As for how to avoid a lemon, if you're speaking mechanically, it's pretty difficult to know for sure. You...or even a mechanic...wouldn't be able to tell if it's going to have lots of future issues (unless there's something pretty obvious like horrible noises, clearly poor prior repairs, etc...). You could ask a Chevy dealer service dep't to run a check on the VIN of a car you're interested in to see if it's been serviced there, but that may or may not mean anything.

 

[lady9]

We have an Equinox which is a smaller than a Traverse but similar. We love it and have had good luck with it, no major repairs. Like you, we were not planning on a new car especially with a kid heading to college. We bought a certified used car. It was 6 years old when we bought it with over 70,000 miles but it was what we could afford. We now have over $142,000 miles on it, 10 years old, and it's still going strong. We are hoping for at least another 2 years from it. Like the previous posters said, buy certified used. We've bought our last few cars like this and have had no majors issues. (Knock on wood!)

 

[Ben E N]

The timing of this could be worse at least. You are at model end clearance time and would probably get a really good deal on a 2018, with good financing, if you are aggressive enough in shopping. Check out forums specifically about Chevy Traverses to see what you should be paying when you go to dealer. It helps cut through a lot of the games.
We just went through a similar process, just due to old age in our car, and were very happy with the price we paid for our Honda Pilot.

 

[Klayfish]

We have an Equinox which is a smaller than a Traverse but similar.

The Equinox and Traverse have very little in common except that they're made by the same company. Different platforms. Really can't compare the two.

 

[Shanti]

Our car was struck hard in the rear while at a light...long story short insurance co is considering it totaled but we're only getting about 4K cause it is fairly old and lots of mileage. We'd just repaired with 1500 the week before the accident . Anyway, we now have to purchase a car this week using that $ as a downpayment. Really cant take on a 500/month car loan but DH wants a Chevy Traverse...any advise on how to save $ and avoid a lemon if we get a 2016/2017?

This sounds a lot like what happened to me. In February I was waiting at a red light in my sedan when an SUV crashed into me from behind. My car was totaled and I was injured.

Due to the injury, I retained an attorney, who also helped me get 10% more for my car than the insurance company initially wanted to pay. Not much, but better than nothing as I felt cheated by the payout amount. (They really don't like paying for our totaled cars, do they?)

I ended up buying a used car directly from the seller, and I am very glad I did this. Buying new, I never could have afforded such a nice car. Buying from a used car lot, I would be limited to the inventory on display, and would have to pay more due to the middle man, deal with salesman pressure, etc.

We combed classified ads for the type of car I wanted, checking offers & asking prices against blue book prices. We also check for the specific car's accident history via Kelly's Blue Book online. Once we settled on a specific car (which was out of town), we viewed it, drove it, and had it inspected by a 3rd party. The latter is an absolute necessity, regardless of whether you're buying from owner or from a used car dealership. Once we got the good inspection report, we arranged to buy the car.

It was a hassle to arrange the actual purchase because they didn't have a clear title (ask about that during initial inquiries) and we had to drive in from out of town to examine the car. But my car is worth it. I'm very happy with it, and I know the price I paid was reasonable.

I don't think I'll ever buy a new car again as the "new car premium" is a waste of money and depreciates immediately. Buying a high-quality used car is a better deal imo. Buying a car brand that is known to perform well over time (I bought a Volvo) is another part of protecting yourself when buying used.

If you buy from a seller in town who has a clear title, the process won't be hard at all. Just make sure you get that thorough inspection.

 

[supersnoop]

We'd just repaired with 1500 the week before the accident

Show your receipt to the insurance company. They should add it to the totaled payout; or at least some of it.

 

[Shanti]

Show your receipt to the insurance company. They should add it to the totaled payout; or at least some of it.

Unfortunately it doesn't work that way. The insurance company is typically only required to pay for the actual value of the car. They examine it and make that determination. I'm sure the repairs done increased that appraised value somewhat, but undoubtably, not enough to make up for what they spent.

I had new tires put on my car shortly before it was totaled, so we made sure the insurance company knew that, and added the new tires' value to the car's overall value. But general repairs done are not valued at the cost of the repair to the owner, or even on a percentage basis. They have value in terms of how they impacted the car's actual value, and that would have already been assessed when the car was appraised by the insurance company after the accident.

Anyway, it sounds like the OP has already taken the insurance company's payout, at which point, no further negotiations can be made.

 

[Nebraska_Disney]

Dont settle for what they offer you either. If you feel the value of your totaled car is too low, expand your search online for cars that are the same age and similar mileage/trim as what you had. See what they are selling for as that is what that insurance is supposed to do, replace your car. If you show that you can't replace your car for what they are offering you, it proves your point that what they are offering is too low. I did this a few years ago and got almost $2K more than what the initial adjuster offered. Yes, it took work on my end and insisting that they review it, but it worked out. Proof is proof.

 

[tvguy]

Try Hertz Car Sales if you have one near you. One year old low mileage cars, fixed price, warranty for below blue book. We're purchased 3 cars there, one went 160,000 miles before being totaled. and second we've had 10 years and only 92,000 miles (it had 29,000 miles on it when we bought it), and the most recent one my daughter has only had 3 months. Only 16,000 miles on it, so the remainder of the factory 3 years 36,000 mile warranty is still in effect.

 

[Klayfish]

This sounds a lot like what happened to me. In February I was waiting at a red light in my sedan when an SUV crashed into me from behind. My car was totaled and I was injured.

Due to the injury, I retained an attorney, who also helped me get 10% more for my car than the insurance company initially wanted to pay. Not much, but better than nothing as I felt cheated by the payout amount. (They really don't like paying for our totaled cars, do they?)

I ended up buying a used car directly from the seller, and I am very glad I did this. Buying new, I never could have afforded such a nice car. Buying from a used car lot, I would be limited to the inventory on display, and would have to pay more due to the middle man, deal with salesman pressure, etc.

We combed classified ads for the type of car I wanted, checking offers & asking prices against blue book prices. We also check for the specific car's accident history via Kelly's Blue Book online. Once we settled on a specific car (which was out of town), we viewed it, drove it, and had it inspected by a 3rd party. The latter is an absolute necessity, regardless of whether you're buying from owner or from a used car dealership. Once we got the good inspection report, we arranged to buy the car.

It was a hassle to arrange the actual purchase because they didn't have a clear title (ask about that during initial inquiries) and we had to drive in from out of town to examine the car. But my car is worth it. I'm very happy with it, and I know the price I paid was reasonable.

I don't think I'll ever buy a new car again as the "new car premium" is a waste of money and depreciates immediately. Buying a high-quality used car is a better deal imo. Buying a car brand that is known to perform well over time (I bought a Volvo) is another part of protecting yourself when buying used.

If you buy from a seller in town who has a clear title, the process won't be hard at all. Just make sure you get that thorough inspection.

A few things I'd point out. First, it's nothing at all to do with insurance companies not "liking" to pay for totaled cars. Much more often than not, it's more that the individual feels their car is worth much more than it really is. Yes, sometimes the evaluation can be a little inaccurate, it happens. As others have mentioned, if it truly is inaccurate, then find local vehicles that are truly comparable and show them as supporting evidence. It may or may not increase the value. If a dealer advertises a car for $3000 more than any others, it doesn't mean your car is worth that much.

Don't even get me started on plaintiff attorneys....ugh.

Third party inspections are great, I also recommend them. Good to have another set of eyes, but they definitely can't predict if a car will be a lemon.

One big thing is do not rely completely on a Carfax or similar accident history report. It's a good tool for sure, but it is not even close to being something you can fully rely on. Just because it doesn't show any accidents does not mean it's never been hit, flooded, stolen or anything else. That's where the third party inspection can help find signs of prior damage repair.

Used rental cars can be a good deal, just have to be careful in buying them.

 

[barkley]

just want to throw out there that if you decided to go with new and are a costco member check out their car buying program. we were looking for new a couple of years ago, did lots of research on the lowest price we could get it for-costco's program dropped the price further (and it only takes connecting to it on their website to find which dealerships near you participate in it).

 

[seashoreCM]

When you test drive it it should work and perform absolutely perfectly. Try everything in the book (the owner's manual). Including rolling the windows up and down.

Do not accept explanations (or excuses) about why something is not working as it should. Think to yourself, "why didn't the seller have it fixed first before selling?".

For those eavesdropping, you should at the very least pressure the insurance company to give you retail dollars for a totaled car. No subjective opinions or judgments are needed, just look it up in the same (Keley's Blue?) book the insurance company says they used to determine the value.

 

[tvguy]

One big thing is do not rely completely on a Carfax or similar accident history report. It's a good tool for sure, but it is not even close to being something you can fully rely on. Just because it doesn't show any accidents does not mean it's never been hit, flooded, stolen or anything else. That's where the third party inspection can help find signs of prior damage repair.

Used rental cars can be a good deal, just have to be careful in buying them.

CarFax only has information that has been reported to a source it tracks. If it isn't reported, they don't know. And there can be mistakes made. My neighbor just sold a car that he took to a quick lube place and they accidentally put the wrong odometer reading in. A simple mistake that showed the car had 90,000 more miles on it than it really had. The lube place corrected it, but it takes a week for the correction to show up.
Our family is on our third used Hertz car. First one was purchased at 25,000 miles and went 180,000 miles before my son totaled it. Second was purchased 10 years ago with 29,000 miles on it and now has 92,000 miles on it. Third was purchased this year with 16,000 miles on it. All three were still covered under the 3 year 36,000 mile factory warranty, plus the Hertz warranty. 2 had free repairs under the Factory warranty, none has needed repairs under the Hertz warranty, none had issues related to being a former rental car.