How to Find A Great Clean Used Car and Pay Less

By: Amit Laufer

buying a Car

Buying a car is usually our second biggest investment after our
home purchase and most of us will do it more than once in our
life.

There is something emotional about cars, it represents our taste
and style, our economic status and our character. Some women
even claim that a car is a man's extension of his reproductive
organ. One the other hand (the good hand) there are women out
there that might express their exhibitionism and extravagance by
choosing to drive a red flashy car for the whole world to notice
them. Both sexes would agree they sometimes feel they "fall in
love" with a certain car model.

There are people who get very existed from a small scratch on
the cars lower side, as if it were their own skin. The beauty of
the car, its aerodynamics shape, the gadgets inside, the seats
the feel of it all play a major part in our decision making.

In our modern life it's almost impossible to function without
one and it's expensive to acquire, to finance and to maintain.

Buying a Used Car

The question I would like to bring up here is whether it's wise
to buy a used car or to make an additional effort and buy a new
car.

If you look at it purely from an economical stand point then
it's quiet obvious that due to the fact that you miss out on the
heaviest depreciation hit the average car absorbs in the first
two and three years it's wise to buy a used car. A car of two or
even three years on the road is basically a new car and in some
cases didn't even finished the manufacturers original bumper to
bumper warranty. (Not included labor 8-(

On the average you might save on a used car anywhere between $
3,000 to $ 8,000. In case you know how to do it via a car dealer
that will buy the car for you at a car auction limited to car
dealers only (for a couple of hundreds of Dollars commission)you
might even get a real bargain. See:
www.carbuyingtips.com/auto-auctions.htm

Another good reason to buy a used car is the fact you can put
your hands on a bigger or better or in other words more car for
the same budget as the new smaller car would have cost you.

More and more manufacturers offer "certified pre-owned"
programs. Cars sold as certified pre-owned (CPO) bridge the gap
between new and used. They are subject to a rigorous inspection
and repair process, and usually are covered by a warranty from
the manufacturer. CPO cars will usually cost a bit more, but the
added warranty and peace of mind makes them a good value.

If you want to get extended warranty look at:
www.carbuyingtips.com/warranty.htm

Where do you get the market value of the cars, that's pretty
easy, all you have to do is follow this link: Blue Book - Used
Car Values at:www.cars.com/go/index.jsp

When purchasing a used car you should protect yourself from
buying a flood damaged vehicle by doing a little research and by
having the vehicle thoroughly checked by a mechanic.

Rain, thunderstorms, swelling rivers and seasonal hurricanes
hitting the coastlines all contribute to flooding disasters that
can mean serious water damage to vehicles in those areas. Water
damage from 1999's Hurricane Floyd ruined approximately 75,000
vehicles and more than half of those ended up back on the road.
Tropical Storm Allison damaged another 95,000 in 2001 and
Hurricane Ivan left more than 100,000 vehicles water-logged.

The numbers for Hurricane Katrina are expected to skyrocket
above half-a-million and safety experts warn that many of these
flood damaged vehicles also will be dried out and offered for
sale. Hurricanes and tropical storms, however, are only part of
the problem.

Flooding can occur throughout the year and in any part of the
country. however, auto industry analysts caution consumers that
the risk of buying a flood damaged car is not limited to these
areas. Flood damaged cars are often repaired cosmetically, and
moved to adjacent states or even across the country where they
are sold to unsuspecting consumers.

These floodwaters can cause damage to vehicle computer and
electrical systems, as well as potentially causing anti-lock
braking and airbag systems to malfunction.

World Trade Center Damaged Cars, thousands of cars were damaged
in New York City on 9/11/2001. It's a prime example of disasters
having long term effects other than the initial death and
destruction. These cars will no doubt be salvaged, rebuilt, sold
at car auctions and have their titles rebuilt, most likely out
of state.

An important help is the nationwide history data base of the
cars in terms of damages, salvaged, lemon, flooded, fraud,
accidents, rental etc' you can look it up at: www.carfax.com/

In addition it's recommended you have a mechanic check it out -
A certified, trusted mechanic will test the electrical and
safety systems, two of the major components that water can
affect. They can also look for signs of water damage that may
not be visible to the untrained eye.

Car Donation

It is estimated that every year, more than a million Americans
donated their cars. Why do they donate their car? Well, few
reasons: A. The proceeds go to charity organizations and it
provides for the donor a good feeling of contributing to
society. B. its tax deductible (Less than it used to). C. The
car is being towed or driven away by the company who arranged
the deal.

Unfortunately, whether through ignorance, confusion or greed, a
substantial percentage of car donors have been deducting the
full "suggested retail price" - what a dealer would get for
reselling your trade-in instead of the fair market value. That's
far more than the IRS had intended, costing the government
millions in lost tax revenue.

The charities weren't making much, either. Most of the donated
cars were sold by the charities for a pittance at auction, and
middlemen who administered the programs on behalf of the
charities took a large percentage of those meager profits.

So IRS changed the rule last year. From now on, if your car is
valued more than $500, the deduction is limited to the charity's
actual selling price. The donor must attach a statement of sale
to the tax return in order to receive the deduction. (The
charity is obligated to provide the statement within 30 days.)
You are not entitled to know the deduction amount before
donating your car. Although the IRS has closed the loophole in
the law, there is still a way to deduct full market value of
your vehicle: If the charity uses the car itself to further its
specific purpose

About the author:
MBA - International Trade & Finance - Heriot-Watt University.
Bsc. Computers and Information Systems - Long Island University
- C.W Post Campus. Hobby: Photography & Cars. Married with two
Children.
http://www.cars-i-like.com/