Used car questions

M

mhayden

100+ Posts
I've found a used Tahoe with good mileage I want, and I've managed to get the price down from $24,900 to $21,000. The final thing we agreed on the phone was $21,000 before TT&L. I'll be going down there Monday to talk it over and go over the paperwork -- just so I know what I should and shouldn't be paying for, what costs over the $21,000 will be thrown in? How much does tax, title and license generally cost?

Anyone have any information on used car extended warranties? How much does a 12-month or so bumper-to-bumper warranty run?
 
The tax rate on cars is usually about 6%. So if it's anywhere from $1000-1500 for TTL that's about normal.

I'm not sure about 12 month warranties, but the longer ones (4-5 years) usually start at about $800 or so. Just depends on how much they want to charge you.
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I would never buy a used car from a dealer unless it was the last day of the moth or perhaps unless it was some sort of "certified" vehicle where they would give you a extended warranty as a freebie.

The one exception would be buying a used car on the last day fo the month. Many people don't know this but in order to maintain their floorplan financing dealerships must get rid of all used cars in their inventory in 60 days. So if they don't turn them off to the auction they go. So you can seriously negotiate at that point.
 
mhayden - you should be fine buying a used car from a dealer. You might pay a little more, but you might not. It all depends on what the dealer bought the car for, which you have no control over.

The additional costs should be limited to:
Tax - 6.25%
Title - $33
License - $2.50
inspection (if it needs it) - $12.50
Documentary Fee - $50 - $100 (the doc fee is a fee for dealer to pay someone to go to the title office, draw up paperwork, etc. We always only charged $50, but others charge a lot more. This is definately negotiable.... "$100 for running over to the title office? Hell, I'll do it for you. Why don't you just take that line item off?")

Others that they will try to throw in:
Transportation Charge: I'd tell them to pound sand - that ought to be in the price of the vehicle.
Credit Life - Life insurance at exhorbitant rates that pays the note if you die. Don't do it.
Vehicle Prep: Ha! Tell them you'll get the car washed for $12 yourself.

Car warranties can be good, but there are a lot of warranty companies that have left people holding the bag. A 12/12 warranty might run $500-$1000, but it all depends on coverage. I'd probably skip it, but I'd still get a good mechanic to check the car out. The biggest problem w/extended warranties is acceptance. Normally, they have the mechanic call an 800 number, fax some stuff back and forth, get an approval code, fax it back in when they're done, and get paid in the future. Most mechanics don't like doing any of that, and consequently, they won't accept it. So, find out where this warranty will be accepted in writing. They will tell you "any certified mechanic", but find out which mechanics will take it.

One last thing. The negotiation on the price isn't done yet. When you get there, find something, anything, that could be considered a defect and try to get them to knock off a few hundred for it. A scratch, a dent, tires not in good shape, etc.

Good luck.
 
I appreciate all the info... An update on the situation:

The car is a "GM Certified" vehicle, but its original warranty has just passed and it only has the 30day/3000 miles left.

I'm relatively a newbie when it comes to stuff like this, so any help at all would be appreciated... Here's whats been updated:

I wasn't available this weekend, so my parents went down there to put a deposit down on the car of $500 for him to hold it for the weekend. Now, all of a sudden he claims the agreed price on the car was $21,500 -- which cannot be the case since $21,000 was the max I said I was willing to go before TT&L.

The fees he is showing on the "worksheet" over the base price includes:

Tax of 6.25%
Inspection Fee: $35.50
VIT Fee: $44.81
License Fee: $69.80
Doc Fee: $50.00

What on those seems high?

Also, checking the CarFax history report on the car brings up something interesting. Only one owner, but the mileage reporting breakdowns are as follows:

06/08/2001: Mileage 12
11/05/2002: Mileage 38,923

Then reporting dates in 12/02, 09/03 and 01/05 that were about 15-20 miles each.

So essentially this car was driven $38,000 miles in the first 18 months after 06/01, and since then has been driven almost none since 11/02. What does this signify? Any red flags?

What is the general consensus on warranties from either the mfg or 3rd parties? I had all kinds of problems with my last used car, but I have a feeling that even if I do get an extended warranty, 90% of the stuff that happens to my car will somehow not be covered under the warranty.

I appreciate all the info.
 
mhayden,
I used to be a used car manager at a dealership here in TX, so I'm fairly familiar with the process. The fees seem to be pretty much in line - I would however inquire about the inv. tax or vit, and the inspection. Both seem a little high.
I assume you are buying the truck from a Chev dealer since it is factory certified, so I would look at purchasing the GM Protection Plan. This warranty would be the best for factory service at any Chev. dealer. 5 yr/100k miles should run about $1000.
The Carfax does raise a bit of a red flag. Tahoes are very popular vehicles, so it is uncommon for one to sit on a lot for any amount of time, much less for a couple of years. Carfax is basically a title search which shows the mileage each time the title is transferred either from dealer to lender or owner, or vice versa. If I'm understanding you correctly, the title has transferred 3 times since 11/05/2002 yet the mileage has only increased approx. 60 miles since then. That does seem a bit strange. I would definitely ask the SALESMANAGER about this. Take your copy of the Carfax with you so you will have your ammo.
You didn't ask for my opinion about the price, but $21,000 is too high for an 01 Tahoe with 39,000 miles. The increase in gas prices put a bit of a dent in the larger SUV market. PM me and I can get you true wholesale and retail values tomorrow.
 
You should never buy a new or used car without checking out Edmunds.com first. Fantastic site.
 
check the fine print on the contract, I'm pretty sure you're not required to pay the "inventory tax" , but they will put it on the contract and make it look official. When I get a chance I'll look on my last auto purchase. Good luck.
 
Get an independent inspection service to check the car. I did that on a car I almost bought a few years ago and it revealed a lot of serious problems, despite the fact that the car seemed to be running fine. Used them again for another car, and it revealed some less-serious problems which helped me drive the price down when I ended up buying it.

The company I used was Auto Analysis in Austin, but I think they serve most of the Austin metro area as well. The inspection cost $98 and was very thorough.
 
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