New and Used Vehicles, Buying and Selling
QUESTIONS
  1. AGCO Auto Used Vehicle Check List
  2. Am I under any obligation to divulge any problems I am having with my car to a dealer if I am trading it in?
  3. Are there certain new vehicles that are better to buy?
  4. Are there things I can check to see if a vehicle has been wrecked and repaired?
  5. At what age does a used vehicle represent the greatest value?
  6. Beyond just the price, what things should I consider when buying a new car, from a cost standpoint?
  7. Buying a new vehicle, I have been told by the salesman, I really should buy a five-year 70,000 mile extended warranty.
  8. Buying a used car on a weekend, when I cannot have it checked, is there a way to protect myself?
  9. Buying a used car, is there a check list of things to look and lookout for?
  10. Can changing tire size void the warranty on my new car?
  11. Can I donate my vehicle to charity if I have no title?
  12. Can I save money by leasing a vehicle?
  13. Can I tell where a vehicle was built before I buy it?
  14. Can odometer rollback be traced?
  15. Do I need the title to my car to send it to a salvage yard?
  16. Does a manual shift transmission get better fuel mileage than an automatic transmission?
  17. How can an abandoned vehicle be disposed of?
  18. How can I calculate how much money I will save by going to a higher mileage vehicle?
  19. How can I check my credit history before trying to finance a vehicle.
  20. How does a pre-purchase vehicle inspection vary from a general inspection?
  21. How long should I wait before I wax my new car?
  22. I agree with your stated position, new vehicles are terrible investments. Other than that is there an instance when you might recommend a new vehicle over a pre-owned vehicle?
  23. I am buying a new vehicle and trading in my old one. Is there a way to know if I am receiving a fair trade value?
  24. I am buying a new vehicle I have been told by the salesperson I must have an extended warranty in order for the bank to finance the vehicle. Is this so or a scam?
  25. I am considering a Ford truck and would like to avoid one with the two-piece spark plugs that break. Is there a list of the models that came with two-piece spark plugs?
  26. I am looking for a used vehicle and plan to have it thoroughly checked before buying. Are there any quick checks I can do to narrow my search?
  27. I am looking for a used vehicle and see the word “Certified” on many. These are normally more expensive than comparable vehicles. Is the certified vehicle worth more or is this merely marketing?
  28. I am restoring an old car and need an all over paint job. Does changing the color of the vehicle lower the value?
  29. I am thinking of buying a vehicle with a salvage title. Are there any special precautions I should take?
  30. I bought a car and did not get a title, because it could not be found.
  31. I have a nine-year old vehicle, worth about $2500.00. The intake manifold is leaking badly and it needs other repairs amounting to about $2000.00. I like the vehicle other than that, would I be foolish to spend that much money on an old car?
  32. I have always driven American vehicles but I am considering a used Japanese import. I notice the oil pressure seems very low at an idle, compared to my other cars. Should I avoid this car?
  33. I intend to buy a used car and have a Car Fax report, do I still need to have it inspected?
  34. I just bought my first new car and wonder what is the best break-in procedure to follow?
  35. I like to save money and am considering a hybrid to cut my fuel cost.
  36. I once sold a vehicle and the buyer did not transfer the title. Later I was contacted by the State because the vehicle did not show current insurance coverage and it took quite a bit to straighten out. How can this be prevented?
  37. I purchased a used vehicle recently and the owner told me it was in very good condition. I did not have it inspected until after the purchase and have learned it needs over $2000.00 in maintenance and repair.
  38. I really like a vehicle I am looking at, but it has a Car Fax report of a serious collision. Should I avoid this vehicle?
  39. I recently bought a Ford vehicle with a key pad entry system on the door. I did not get the code when I bought the vehicle. Is there a way to find out what it is?
  40. I recently purchased a used vehicle and have since discovered it had been seriously wrecked and repaired improperly. I have had several problems relating to this. The seller wrote “As Is” on the bill of sale, is there anything I can do?
  41. I suspect the vehicle I purchased might have been wrecked?
  42. I would like to buy an American vehicle, any suggestions?
  43. In general do the cars start breaking after 100K or 150K miles. I understand a lot depends of the kind of car and the maintenance done by the previous owner.
  44. Is it better to buy a used vehicle from a new car dealer, a used car lot or an individual?
  45. Is it possible to tell if a vehicle has been wrecked and repaired?
  46. Is it wise to trade a vehicle after one year?
  47. Is there a better time of year to sell a used vehicle?
  48. Is there a check-list (checklist) I can use when looking at used vehicles?
  49. Is there an easy way to determine the year model of a vehicle?
  50. Lease payments are less than payments when purchasing a new car. Can I save money with a lease?
  51. Looking at a used car, the owner will not let me test drive it because of liability if there were an accident. What can be done?
  52. Looking at new cars, I noticed several have miles on the odometer, up to 200. How many miles can a vehicle have and still be considered new?
  53. Looking for a used Japanese vehicle, is there anything particular to watch out for?
  54. My car has been on the market for several weeks. A few people have looked at it but nobody seems to want to buy. Are there any tricks to selling a car?
  55. My car has overheated and I am told the head gasket is leaking and the price of repair is well over a thousand dollars. Should I consider repair or buy another vehicle?
  56. My car only gets 25 MPG, how much can I save trading for one that gets 35 MPG or more?
  57. My Father and I are looking for an old vehicle to restore. Any pointers?
  58. My present vehicle runs well but only averages about 20 mpg. Some new vehicles get about 30 mpg. How can I tell how much I will save?
  59. My vehicle has almost 100,000 miles and I have done nothing but change the oil. I am starting to have problems with it. Should I buy a new vehicle?
  60. My vehicle is about 8,000 miles out of the manufacturer’s warranty and I have a transmission going out. The dealership says there is nothing they will do, what is my recourse?
  61. Recently I bought a forty-year old car that has been sitting idle for twenty-five years. The car is in excellent condition and I would like to restore it.
  62. Should a person ever consider buying a vehicle with 100,000 or more miles on it?
  63. Should I consider a hybrid vehicle?
  64. Should I consider an extended warranty when buying a vehicle?
  65. Should I consider buying the car at the end of the lease?
  66. Should I consider purchasing a vehicle with a salvage title?
  67. Should I have all problems with my vehicle repaired before placing it for sale?
  68. There are a few minor problems with my vehicle. Should I fix them before trying to sell?
  69. To raise cash, I need to sell my late model vehicle and buy one for around $5,000. I need to get two years service to allow my finances to recover.
  70. What does Blue Book value of a vehicle mean?
  71. What does the word salvage on a vehicle title indicate?
  72. What is considered an antique or classic car?
  73. What is my used car worth?
  74. What is the difference in a title and a vehicle registration?
  75. When buying a used vehicle is it better to look for an older low mileage or a newer vehicle with higher miles?
  76. When is it time to consider buying another vehicle?
  77. Which new car is the best from an investment standpoint?
  78. While under warranty, is it best to have maintenance performed by the dealership?
  79. Why are the interest rates on a used vehicle higher than on a new one?
ANSWERS
  1. AGCO Auto Used Vehicle Check List

    Download and print this handy form to help you evaluate used vehicles.

    AGCO Auto Used Vehicle Check List


    [Back to top]
  2. Am I under any obligation to divulge any problems I am having with my car to a dealer if I am trading it in?

    Laws may vary from State to State, but generally a dealership is considered a professional. A professional is held to a higher standard and expected to know what they are buying. This may also be one reason most dealers offer lower prices when buying used vehicles? If you are not asked and do not offer any information, legally you should be okay. If asked, I would feel obligated to tell what I knew. It likely will not make that much difference in the trade-in price.
    [Back to top]
  3. Are there certain new vehicles that are better to buy?

    Most new vehicles will give good service if properly maintained, and few vehicles will if not maintained. What is more important is to get a vehicle that meets your needs. For instance if fuel mileage is very important to you, then do not consider an SUV. By the same token, if you have a large family buying a compact vehicle will not normally be a good choice.

    Other things to consider are the popularity of the vehicle and the number of dealers in your area. For example Chevrolet is very popular and there are many dealers to supply parts and warranty service. More obscure brands may have only one dealership, and if they go out of business, you may have difficulty obtaining warranty or parts. Also, brands that are new to the US market may be somewhat risky.

    [Back to top]
  4. Are there things I can check to see if a vehicle has been wrecked and repaired?

    An expert may be required to spot a well repaired vehicle, but well repaired vehicles present few problem. With less well repaired vehicles there are several tell-tale signs, the average person can spot. Vehicles with such signs will generally be considered poorly repaired and should be avoided. See our Detailed Topic Spotting Wrecked Vehicles for several examples.
    [Back to top]
  5. At what age does a used vehicle represent the greatest value?

    Maximum depreciation is often around three-years. That is, the vehicle has lost a higher percentage of its value than it will continue to lose. Some vehicles lose as much as 60 to 70% in three years. At only three years almost any quality built vehicle will still be in very good condition. Buying such a vehicle and following a rigid maintenance schedule, will provide a very low overall cost.

    For much more information on calculating the true cost of a vehicle, see our Vehicle Cost Calculator in the Cost Saving Calculator Category.

    [Back to top]
  6. Beyond just the price, what things should I consider when buying a new car, from a cost standpoint?

    Newer vehicles normally employ a lot of very expensive technology. When technology breaks there is a significant cost. For instance most drivers do not know they have an active suspension system or enjoy any benefit from it. When the system malfunctions and a light flashes on, there is a huge repair cost.

    Aftermarket navigation systems cost a fraction as much as onboard systems and offer the same features. When the aftermarket system fails it may be inexpensively replaced. Factory systems are extremely expensive to repair. Sport packages with large diameter tires also add significant cost with no benefit, other than appearance. From a cost standpoint, the less gadgets the lower the overall cost to maintain.
    [Back to top]

  7. Buying a new vehicle, I have been told by the salesman, I really should buy a five-year 70,000 mile extended warranty.

    I advise against the purchase of such warranties. Your vehicle manufacturer's warranty covers the vehicle for three years and 36,000 miles. You are being charged for five years and 70,000 miles but only getting two year and 34,000 miles of coverage.

    Extended warranties are nothing more than a term insurance policy with limitations. Warranty companies make money simply because they charge a lot more than they spend. Even after administrative cost, promotion, commissions and claims there is a lot of money left over. This means most people buying an extended warranty will pay more for the policy than they would have paid for repairs.

    Most salespeople and dealerships receive a commission payment for selling these policies. I feel this has a lot more to do with their zeal than concern for the client. Put the money into a CD, pay for your own repairs and at the end of the term, you will have money left.

    [Back to top]
  8. Buying a used car on a weekend, when I cannot have it checked, is there a way to protect myself?

    I would never advise buying a vehicle without a thorough inspection by a trusted mechanic. The price difference between new and used is substantial. Someone is taking a loss to sell this vehicle. There can be many reasons for that and you need to be sure it is not because of a problem.

    If you inform the seller you are truly interested and offer a deposit, most will hold the vehicle. On the deposit you should write, "Subject to inspection by my mechanic." This will normally protect you if a major problem is found. Remember though, a deposit is a commitment, and you are not allowed to just change your mind.

    [Back to top]
  9. Buying a used car, is there a check list of things to look and lookout for?

    Read through the other questions in this section for additional input and then download the AGCO Auto check list and you should be all set.

    AGCO Auto Used Vehicle Check List

    [Back to top]
  10. Can changing tire size void the warranty on my new car?

    Terms vary among manufacturers but technically any modification to the vehicle could cause the warranty to be void. This is more likely if a problem develops related to the wheels or tires. I may also be subject to how drastically the size is changed from the stock recommendation. A warranty is a contract. If the terms, of the contract, are changed by either party, the agreement may no longer be valid.
    [Back to top]
  11. Can I donate my vehicle to charity if I have no title?

    No, without a title you cannot establish that you own the vehicle. A title is needed to establish ownership and to protect any lien holder that may be listed. If the title is lost, a duplicate can usually be obtained. We should contact the Department of Motor Vehicles, in the State where the vehicle is registered.
    [Back to top]
  12. Can I save money by leasing a vehicle?

    Leasing is very similar to renting, only with a contract that is binding. There are usually restrictions on miles you may drive, and should you decide the vehicle is not for you, there is normally no inexpensive way out. With leasing you gain no equity and simply make payments. The only advantage is a lower monthly payment, but considering you are buying nothing, that may be a small consolation.

    For more information, please see our Detailed Topic, Problems With Automobile Leasing.


    [Back to top]
  13. Can I tell where a vehicle was built before I buy it?

    The country in which a vehicle was assembled is part of the vehicle identification number or VIN. The first digit of the VIN is a code that reflects the country of assembly as follows:
    • 1 = USA
    • 2 = Canada
    • 3 = Mexico
    • J = Japan
    • K = Korea
    • E = England
    • W = Germany
    • Z = Italy

    For much more information on US built and imported vehicles please see our Detailed Topic section.


    [Back to top]
  14. Can odometer rollback be traced?

    With digital odometers and the right equipment, rollback can be almost un-traceable. This is another reason that service records are important. A thorough set of service records, showing mileage and date of service, substantiates the mileage on the vehicle. Many states, including Louisiana, record mileage during State inspections. This information, with a bit of math can narrow the possibility of rollback substantially.
    [Back to top]
  15. Do I need the title to my car to send it to a salvage yard?

    Yes, salvage yards are required to have titles for the vehicles they process. This prevents stolen vehicles from simply being disposed of and keeps vehicles from being unlawfully confiscated. It also protects lien holders who have their name registered on the title.
    [Back to top]
  16. Does a manual shift transmission get better fuel mileage than an automatic transmission?

    I think it is possible that a professional driver could get very slightly better mileage with a manual shift. For the vast majority of drivers the performance of a modern automatic transmission would be almost impossible to beat.
    [Back to top]
  17. How can an abandoned vehicle be disposed of?

    Most States allow an abandoned vehicles to be removed by towing from your property. Laws vary but most allow towing and storage facilities to obtain a title after going through due process. This involves contacting the owner of record and lien holders and advertising the vehicle for sale.
    [Back to top]
  18. How can I calculate how much money I will save by going to a higher mileage vehicle?

    To calculate fuel cost savings between two vehicles, use the AGCO Miles Per Gallon Savings Calculator. If you would also like to consider other factors of vehicle cost, when making a buying decision, the AGCO Vehicle Cost Calculator compares new vehicle cost to that of a used vehicle.
    [Back to top]
  19. How can I check my credit history before trying to finance a vehicle.

    The Federal Fair Credit Reporting Act requires the major credit agencies to supply a free credit report to consumers once a year, upon request. This information can be accessed on line at

    http://www.annualcreditreport.com/

    or by writing to
    Annual Credit Report Request Service
    PO Box 105283
    Atlanta, GA 30348-5283

    It is also reported that there are several sites on the internet that advertise free credit reports and may not be legitimate. Never provide sensitive credit information without being certain with whom you are dealing.

    [Back to top]
  20. How does a pre-purchase vehicle inspection vary from a general inspection?

    The pre-purchase vehicle inspection is far more investigative in nature. This is because the history of the vehicle is not known as would be the case with a general inspection. For instance evidence of previous collision damage, abuse, concealed damage and flood damage are looked for. With a general inspection, concealed damage is much less a concern and pending problems and maintenance issues would be more of an issue. Naturally there are also items common to both, such as looking for pattern failures, worn, leaking or damaged components.
    [Back to top]
  21. How long should I wait before I wax my new car?

    Factory paint finishes, on new vehicles, can be waxed right away. The paint is cured at a much higher temperature than is possible with a re-paint. For best protection a new car should be carefully washed, prepared and waxed within the first month of ownership and at least twice a year thereafter.
    [Back to top]
  22. I agree with your stated position, new vehicles are terrible investments. Other than that is there an instance when you might recommend a new vehicle over a pre-owned vehicle?

    The reason to buy a new vehicle is emotional. If a person just wants a new vehicle, and finances are not a problem, they should buy one. Life is too short not to have the things we want and can afford. Other than that, if a specific vehicle is needed and not available otherwise. The point is, a new vehicle is NOT something that is going to save a person money. Often a newer vehicle is not considered, even though it might make more sense. For instance, if too much is being spent on a present vehicle a NEWER vehicle may be in order, rather than a new vehicle.
    [Back to top]
  23. I am buying a new vehicle and trading in my old one. Is there a way to know if I am receiving a fair trade value?

    Yes there is, simply go to the Links section of our web site and click on the “What is my used car worth (Edmond's)” link. Enter your vehicle make, model, mileage, options and condition and it will give the value adjusted for your local area.

    Retail value is what a dealership might expect to receive when they sell the vehicle. Third party is what a person might expect to sell the vehicle for, if they sold it themselves. Trade-in is the value that might be expected when trading the vehicle with a dealership. Because the dealership expects to make money on the vehicle, trade-in will be much lower than retail price.

    [Back to top]
  24. I am buying a new vehicle I have been told by the salesperson I must have an extended warranty in order for the bank to finance the vehicle. Is this so or a scam?

    No legitimate financial institution requires an extended warranty. More likely, getting the sales commission from the Extended warranties is the salesperson's primary concern. I would contact the insurance commissioner in your State and report this. Any dealership making such a claim, may violate the law.
    [Back to top]
  25. I am considering a Ford truck and would like to avoid one with the two-piece spark plugs that break. Is there a list of the models that came with two-piece spark plugs?

    The two-piece plugs were used in the 4.6L, 5.4L and 6.8L 3-Valve engines; The two Valve engine does not use this plug.

    FORD:

    2005-2008 Mustang
    2004-2008 F-150
    2005-2008 Expedition, F-Super Duty
    2006-2008 Explorer,
    F-53 Motor home Chassis
    2007-2008 Explorer Sport Trac

    LINCOLN:

    2005-2008 Navigator
    2006-2008 Mark LT
    MERCURY:
    2006-2008 Mountaineer

    For more information, please see our Detailed Topic, Ford Spark Plug Breakage.


    [Back to top]
  26. I am looking for a used vehicle and plan to have it thoroughly checked before buying. Are there any quick checks I can do to narrow my search?

    First, would be determining what type of vehicle best serves your needs. There is a multitude of vehicles on the market and selecting one is a daunting task. Closely examine your needs, determine the vehicle(s) that best match them and concentrate on those. For instance, an SUV may be fine, but will not meet be a good choice for a high fuel mileage vehicle.

    Once a particular vehicle, that meets your needs, is settled on, you need only find the best example of that vehicle. This is normally the vehicle that is least likely to have problems. Look it over carefully for signs of previous abuse. Mis-matched paint, body lines that do not line-up and scratches in the paint may show the vehicle has been wrecked and repaired. See our Detailed Topic Spotting Wrecked Vehicles for more information.

    Also take notice of the brand of tires, battery and oil filter on the vehicle. When the tires and battery are premium products and the oil filter is the same brand as the vehicle manufacturer, good previous service is shown. These choices show the vehicle has been well maintained by someone that understands value. This is a vehicle I would consider having professionally assessed and buying.

    [Back to top]
  27. I am looking for a used vehicle and see the word “Certified” on many. These are normally more expensive than comparable vehicles. Is the certified vehicle worth more or is this merely marketing?

    The word “Certified” has no specific meaning and no value in my opinion. Many times the vehicle has had some type of inspection and often has an extended warranty added to the price. It should be considered exactly the same as any other used vehicle. That is it should represent value and you should have it inspected by a third party before purchase.

    I feel extended warranties are of no value and I would never pay additional to have one. The best “warranty” is a thorough inspection by a trained professional, to buy a vehicle that does not have problems.

    [Back to top]
  28. I am restoring an old car and need an all over paint job. Does changing the color of the vehicle lower the value?

    The loss or gain in vehicle value, after a color change, depends on the vehicle and the target market. For instance, to a true collector, a T-model Ford painted any color but black would be worthless. Very high-end vehicles are also best left with their original color as the value will suffer. On less-expensive restorations, where originality is not as big an issue, a brighter color may actually enhance the value.
    [Back to top]
  29. I am thinking of buying a vehicle with a salvage title. Are there any special precautions I should take?

    A salvage title indicates that an insurance company has determined the vehicle was not feasible to repair, based on its value. Insurance companies are expert in this field. If such a vehicle could be bought, repaired and sold at a profit, I would question the quality of the repair. At a minimum I would have the vehicle inspected thoroughly by an expert in the field. Keep in mind also, a lower purchase price can be quickly offset by the lack of resale value.

    See our Detailed Topic Spotting Wrecked Vehicles for more information.

    [Back to top]
  30. I bought a car and did not get a title, because it could not be found.

    Without a signed titled, that if free of liens and a bill of sale you will not be able to register the vehicle. Basically this means you do not own the vehicle and can be in violation of several laws by operating it. You should contact the owner immediately and have them file with the State for a missing title. The vehicle should not be operated until the title is obtained and it is registered. Your State department of motor vehicles can provide you a list of documents that will be necessary. If the title cannot be produced, the seller has no right to sell the vehicle. Return the car and ask for your money back. If the seller refuses an attorney might be able to assist you in getting your money back.
    [Back to top]
  31. I have a nine-year old vehicle, worth about $2500.00. The intake manifold is leaking badly and it needs other repairs amounting to about $2000.00. I like the vehicle other than that, would I be foolish to spend that much money on an old car?

    I think the answer depends on your plans and the overall condition of the vehicle. If you like the vehicle I suggest having a full general inspection performed. This will let you know if there are other major problems pending.

    If the vehicle is in otherwise good condition, this repair should allow you to get another year or two of service. At the end of that time, you could sell it and still get your money back. In its present condition, the vehicle is worth next to nothing. Buying a replacement will likely cost several times the amount of the repair. From that perspective repair may make sense.

    For more information on deciding whether or not to repair a vehicle, please see our Detailed Topic, Should I Repair of Buy Another Vehicle.


    [Back to top]
  32. I have always driven American vehicles but I am considering a used Japanese import. I notice the oil pressure seems very low at an idle, compared to my other cars. Should I avoid this car?

    It is always wise to have a professional check the vehicle before purchase. As a general rule, Japanese vehicles tend to run lower oil pressure than the American vehicles, particularly at idle. Some specify as little as ten pounds of pressure per 1000 RPM. This is lower than most American vehicles, but adequate to lubricate the engines designed to run this pressure.
    [Back to top]
  33. I intend to buy a used car and have a Car Fax report, do I still need to have it inspected?

    Yes! Such reports are fine but can be very limited. The information comes from insurance companies and auto manufacturer warranty data. Not included are damage that is not repaired and damage that was not covered by insurance.

    For instance a vehicle could be flooded and then put up for sale, with no insurance claim. This would not be reported, but should be found in a pre-purchase inspection. A few other things that would not show up include, a vehicle that has been severely overheated and not repaired. A vehicle on which the maintenance has been neglected. A vehicle that was wrecked and repaired without insurance being involved and so on.

    [Back to top]
  34. I just bought my first new car and wonder what is the best break-in procedure to follow?

    Most new vehicles require little in the way of special break-in procedure. For the first 2,000 to 4,000 miles avoid rapid acceleration and hard braking. This allows the engine to "run in" properly and allows the brake pads to seat to the rotors. Also avoid driving at a set speed for a long period. It is better to vary driving speed during break-in. For instance instead of setting the cruise control on 70 MPH, try driving 60 for a while, then 65 and then 70. Repeat the cycle about every 15-20 minutes.

    I also feel the initial oil changes should occur very quickly. For more information, see When should I do my first oil change,

    [Back to top]
  35. I like to save money and am considering a hybrid to cut my fuel cost.

    If lowering cost is the objective, a hybrid may be a very poor choice. The design of hybrids are extremely complex with an abundance of very expensive components. For instance, a replacement battery can be over $6000.00. The hybrid motor may be $12,000 or more to replace.

    More to the point is the cost savings. Even at $4.00 per gallon, driving 12,000 miles per year, going from 35 mpg (conventional high efficiency vehicle) to 40 mph (hybrid) would save only $171.00 per year. That equals less than $857.00 saving in five years not counting additional repair cost.

    For even more information on hybrid vehicles, see our Detailed Topics article, Hybrid Hype.

    A more detailed article on increasing fuel mileage is in our Detailed Auto Topics section under Saving Gasoline, Saving Money.

    [Back to top]
  36. I once sold a vehicle and the buyer did not transfer the title. Later I was contacted by the State because the vehicle did not show current insurance coverage and it took quite a bit to straighten out. How can this be prevented?

    This can be a serious issue, especially if the vehicle becomes involved in an accident. Best is to remove the license plate before transferring the vehicle. Surrender the plate to the Department of Motor Vehicles in your State, along with a copy of the bill of sale. Forward another copy of the bill of sale to your insurance company and retain a notarized copy in your personal records.
    [Back to top]
  37. I purchased a used vehicle recently and the owner told me it was in very good condition. I did not have it inspected until after the purchase and have learned it needs over $2000.00 in maintenance and repair.

    The Louisiana Redhibition law sometimes covers such things. Go to Links and click on that section for more details. A lot depends on the nature of the repairs to be done and if you paid close to retail price for the vehicle.

    Maintenance items, though they can be very pricey are normally not considered a defect in the vehicle. An exception might be if you were told they were all up to date, and they were not. Also when a vehicle is purchased at a discounted price [far below retail] much more responsibility is shifted to the buyer, caveat emptor.

    Haste is important, as the more time that elapses, the weaker the case becomes. Perhaps a phone call to the seller, followed by a letter is in order. If they fail to respond you can pursue the matter through the courts, with or without an attorney.

    [Back to top]
  38. I really like a vehicle I am looking at, but it has a Car Fax report of a serious collision. Should I avoid this vehicle?

    I would advise a pre-purchase inspection of the vehicle, by a professional. Insurance companies often rate severity, on the amount spent, relative to the value of the vehicle. In reality, seriousness is a factor of how well the vehicle is repaired.

    For instance, a vehicle could sustain a good deal of bolted-on part damage. All parts could be replaced and the repair might rate as serious because of the cost. However, such a vehicle might be as good as new.

    Another vehicle could sustain structural damage with few parts needing replacement. The cost of repair may be far less, but the outcome could also be far less promising. A professional can measure the vehicle and inspect the repairs and give far better information.

    [Back to top]
  39. I recently bought a Ford vehicle with a key pad entry system on the door. I did not get the code when I bought the vehicle. Is there a way to find out what it is?

    The key code is stored by the vehicle computer system and most shops are equipped with tooling that can retrieve it for you.
    [Back to top]
  40. I recently purchased a used vehicle and have since discovered it had been seriously wrecked and repaired improperly. I have had several problems relating to this. The seller wrote “As Is” on the bill of sale, is there anything I can do?

    This sort of thing happens more often than you might imagine, and is a great reason to have any vehicle inspected before purchase. This may fall under the Louisiana redhibition law. This law, with some exceptions, states that a product has an implied warranty. This warranty includes the vehicle is fit for the purpose for which it was sold. A vehicle with collision damage and resulting problems may fall under the definition of not being fit for the purpose sold.

    An attorney is not necessary to file under the law, however a consultation may be a wise investment. Many times the sale can be rescinded or the sales price reduced. It is important to act quickly as the case becomes weaker as time passes.

    Check our Links section for a link on the Louisiana Redhibition Law.

    [Back to top]
  41. I suspect the vehicle I purchased might have been wrecked?

    A well repaired vehicle might only be spotted by a professional, but it is not likely to be a big problem. Spotting poorly repaired vehicles is a lot simpler. Please read our Detailed Topic article Spotting Wrecked Vehicles for a photographic guide. If you are still in doubt a professional inspection might be a good idea.
    [Back to top]
  42. I would like to buy an American vehicle, any suggestions?

    Best is to forget the name and do some research. Most vehicles people have come to accept as domestic may not be. Many imported names actually represent domestic built vehicles. For instance, according to the American Automobile Labeling Act (AALA) a US built vehicle would be built in the US and contain 75% or greater US content. A Toyota Camry built in Georgetown Kentucky would qualify. A Ford Focus could be built in Canada and contain around 67% US content and not qualify as a U.S. car.

    Vehicles sold in the US are labeled as to US content and country of origin. This information should be on the vehicle or available from the selling dealership, though may not be prominently displayed.

    For much more information on US built and imported vehicles see our Detailed Topic section.

    [Back to top]
  43. In general do the cars start breaking after 100K or 150K miles. I understand a lot depends of the kind of car and the maintenance done by the previous owner.

    As you wisely stated, it depends a lot on the previous maintenance and care. As a general statement, years seem to be harder on vehicles than miles. High mileage, relative to age, normally means the vehicle has been driven a lot, which is good. I have serviced many Acura, Honda, Toyota and Lexus vehicles with well over double that mileage and very few problems.
    [Back to top]
  44. Is it better to buy a used vehicle from a new car dealer, a used car lot or an individual?

    Each entity has, good and bad points. First remember that new vehicle dealers buy used vehicles from auctions the same as used car dealers. They can have all the same problems that any used vehicle can have and should be checked just as closely before purchase.

    New vehicle dealers generally will command a higher price for their vehicles than used dealers or individuals. The advantage is they are normally large enough that if there is a problem, a legal remedy is effective. For instance, should a vehicle be found to have a major problem, a judgment in your favor is only as good as the ability of the seller to honor it.

    There are several large independent used vehicle dealers. These can offer more security than some small dealers and still have lower prices than dealership lots. The time in business and reputation of the lot should also be considered.

    When buying from an individual, you have the advantage of speaking directly to the owner of the vehicle. Eye contact, body language, etc. can give you a good “feel” for the person. Always ask open ended questions like, “Why are you selling the vehicle?” The price from an individual will usually be the lowest. A disadvantage is, if there is a problem, their ability to refund your money may be a concern. Never buy a vehicle without having it checked by a professional that you trust.

    [Back to top]
  45. Is it possible to tell if a vehicle has been wrecked and repaired?

    A professional can almost always spot a vehicle that has been wrecked and repaired. Any repair performed so well as to be indistinguishable would present no risk to the buyer.

    For more information, please see our Detailed Topic, Spotting Wrecked Vehicles.


    [Back to top]
  46. Is it wise to trade a vehicle after one year?

    All vehicles suffer depreciation. This is the difference in value between new and used. The amounts vary somewhat from one vehicle to another, but all vehicles lose their maximum value in the first year. This can average around 28 to 30%. This combined with the sales tax and other fees paid adds to a substantial loss and an extremely high cost per month.

    The affect of these losses taper off in time, because they are averaged over a broader duration. Our Vehicle Cost Calculator may help demonstrate this more clearly. As a general rule, it is far wiser to buy a three-year old vehicle and keep it for about ten years.

    [Back to top]
  47. Is there a better time of year to sell a used vehicle?

    Certain type vehicles may sell better at different times. For instance four-wheel drive vehicles may be easiest to sell just before hunting season. Inexpensive, small vehicles tend to sell best before schools go into session and at tax refund time. Convertibles and sports cars sell best in the Spring. Overall, clean vehicles in good condition, sell almost any time of the year.

    When selling a vehicle, I find it best to be totally honest with the buyer. I advise having the vehicle checked by a qualified mechanic before placing it for sales. This avoids unpleasant surprises and offers a bit of protection against future claims. Disclose any problems that exist, in detail and list them on the bill of sale.

    [Back to top]
  48. Is there a check-list (checklist) I can use when looking at used vehicles?

    You can download and print the AGCO Auto check list, designed to help in inspecting used vehicles, by clicking this icon.

    AGCO Auto Used Vehicle Check List

    [Back to top]
  49. Is there an easy way to determine the year model of a vehicle?

    The tenth digit of the vehicle identification number or VIN represents the year of manufacture.

    YEARCODE  YEAR CODE YEAR CODE YEAR CODE
    1980 A1990 L 2000 Y2010 A
    1981 B1991 M2001 12011 B
    1982 C1992 N2002 22012 C
    1983 D1993 P2003 32013 D
    1984 E1994 R2004 42014 E
    1985 F1995 S2005 52015 F
    1986 G1996 Y2006 62016 G
    1987 H1997 V2007 72017 H
    1988 J1998 W2008 82018 J
    1989 K1999 X2009 92019 K


    Identifying year model with the VIN.

    [Back to top]
  50. Lease payments are less than payments when purchasing a new car. Can I save money with a lease?

    The payments are lower because you are not gaining equity in the vehicle. For instance, at the end of the lease term, you surrender the vehicle with nothing to show. With a purchase, you own the vehicle when the payments are finished. This can be a tremendous savings if the vehicle is well maintained. Most well maintained vehicles last ten or more years with minimum problems. This is equivalent to driving with no vehicle payments for several years.

    Even greater savings can be had by purchasing a three year old vehicle rather than new. Because of depreciation, three year old vehicles can often be had for half or less than the price of new.

    If you would also like to consider other factors of vehicle cost, when making a buying decision, the AGCO Vehicle Cost Calculator compares new vehicle cost to that of a used vehicle.

    [Back to top]
  51. Looking at a used car, the owner will not let me test drive it because of liability if there were an accident. What can be done?

    Laws vary from State to State, but his concern is legitimate. Having the owner drive while you ride and observe may determine if the vehicle is worth pursuing. If so, have the owner bring the vehicle to a shop that you trust and that performs pre-purchase inspections. Legitimate shops carry insurance that protects the owner in case of an accident.
    [Back to top]
  52. Looking at new cars, I noticed several have miles on the odometer, up to 200. How many miles can a vehicle have and still be considered new?

    Laws vary from one State to another. Federal odometer law normally defines a new vehicle as having 300 or less miles. Another condition is that the vehicle has not been licensed to a retail customer. Usually, seven to ten miles are normal, accounting for servicing the vehicle and test drives.
    [Back to top]
  53. Looking for a used Japanese vehicle, is there anything particular to watch out for?

    As with any vehicle the type of service and maintenance [or lack of] the vehicle has received will largely determine future problems. The easiest way to verify this is with a thorough inspection by a professional, trained in this type of work.

    Another thing to consider is many Japanese vehicles use timing belts that normally need replacement between 60,000 and 105,000 miles. If this has not been done, it is wise to factor the expense into the price paid for the vehicle. Done properly, this can be an expensive repair, sometimes costing over $1000.00 on certain models. A proper inspection will give you this type of information.

    In recent years, the move has been away from timing belts and toward timing chains, particularly on Toyota and Honda. Timing chains can last much longer than belts and may help lower maintenance cost. This may help justify the extra cost of a later model vehicle.

    [Back to top]
  54. My car has been on the market for several weeks. A few people have looked at it but nobody seems to want to buy. Are there any tricks to selling a car?

    Certain things can increase your odds. First the vehicle must be reasonably priced for the mileage, age and condition. Checking our Links Section, follow the link to How Much Is My Car Worth. Price the vehicle at or near the private seller amount and be honest about the condition.

    Selling a vehicle is similar to selling a house, or anything else. Curb appeal is important. The vehicle should be clean, inside and out. Professional detailing is often a good investment. Be certain to remove all personal items before showing the vehicle. Also make sure the vehicle is running well and everything works. Copies of the service history will also add value.

    I also find, listing the price, with the vehicle saves a good deal of time. If you are willing to negotiate, state that as well. Listen to the potential buyers carefully. If you listen, they will normally let you know why they are not willing to buy. If possible, offer to remedy whatever concerns them and see if they will buy. Finally, politely ask for the sale. People often respond when the salesperson lets them know they really want to sell the vehicle.

    [Back to top]
  55. My car has overheated and I am told the head gasket is leaking and the price of repair is well over a thousand dollars. Should I consider repair or buy another vehicle?

    There are at least three major considerations.

    1.) Does the vehicle meets your needs?
    2.) Do you like the vehicle?
    3.) After this repair is the vehicle likely to be in good condition?

    If the answer for any of these questions is NO, it may be time to look at another vehicle.

    Economically speaking, if the vehicle serves your needs and after the repair you can expect several more miles of service, repair is likely your best option. The sales tax on a new vehicle can easily exceed the amount of this repair. Even a used vehicle will normally cost several times the cost of this repair.

    Our Buy or Keep Calculator is designed to help you make just such a decision.

    [Back to top]
  56. My car only gets 25 MPG, how much can I save trading for one that gets 35 MPG or more?

    The savings depends on the amount you drive and the cost of fuel. Most folks average 12,000 miles per year. With fuel cost at $5.00 per gallon moving from 25 MPG to 35 MPG would save $686.00.00 per year. Unfortunately this savings may be more than offset by the generally much high cost of maintaining newer vehicles.

    To calculate fuel cost savings between two vehicles, use the AGCO Miles Per Gallon Savings Calculator.


    [Back to top]
  57. My Father and I are looking for an old vehicle to restore. Any pointers?

    Having restored several old vehicles, I have learned a few lessons. Buy a vehicle, of the type you want that is in the best condition you can find. Every dollar spent buying a very good condition vehicle is likely worth ten dollars trying to repair one in poor condition. This may also have the added benefit of a vehicle that is immediately able to be driven. It is a lot easier to keep your enthusiasm for a vehicle you can drive than one that is in pieces. Vehicles that were popular, such as a 1955 Chevrolet, 1965 Mustang or a 1969 Camaro will be much easier to find parts for. Lastly, mechanical repairs are normally less expensive and more easily accomplished than body repair.
    [Back to top]
  58. My present vehicle runs well but only averages about 20 mpg. Some new vehicles get about 30 mpg. How can I tell how much I will save?

    There are several online calculators on the AGCO website that will help you calculate such cost. Using the miles per calculator, if you drive the average 12,000 miles per year and fuel cost $4.00 per gallon, your savings would be $800.00 per year.
    [Back to top]
  59. My vehicle has almost 100,000 miles and I have done nothing but change the oil. I am starting to have problems with it. Should I buy a new vehicle?

    It would have been better to have maintained the vehicle from earlier on, but it is not normally too late to reverse a lot of potential problems. I would start with a good General Inspection. This will let you know where you are, in reference to where you should be. Bringing all maintenance up to date at this point may allow several years of additional use. For more information please read, the life cycle of a vehicle.
    [Back to top]
  60. My vehicle is about 8,000 miles out of the manufacturer’s warranty and I have a transmission going out. The dealership says there is nothing they will do, what is my recourse?

    A warranty is a contract with a specific term agreed to by both parties. When the term expires the contract has been honored. In some instances, the manufacturer may be willing to help. Contact the Zone Manager, listed in your owners manual. You are not likely to prevail in a legal suite but an attorney could advise best on that possibility.

    For future reference, the AGCO End of Warranty Inspection can often spot things like this and can be a great investment.

    [Back to top]
  61. Recently I bought a forty-year old car that has been sitting idle for twenty-five years. The car is in excellent condition and I would like to restore it.

    If you have the knowledge, time, tools, a place to do the work yourself and you enjoy doing it, vehicle restoration can be an enjoyable hobby. If you have to pay someone to restore the vehicle or do not enjoy the work, it can be a very large chore. A vehicle of that age, that has been sitting idle for that long, is likely to have a multitude of issues. When vehicles sit idle, dry rot, corrosion and age combine. Bearings start to pit, seals get hard and start to leak, hoses dry rot and metal components corrode.

    A good starting point would be to get it running. I would drop the fuel tank and dispose of any fuel. Check to make sure the tank and pump are not rusted. If they are they need to be replaced. If not add fresh fuel, a new battery, change the oil and see what happens. If it runs, I would next replace all fluids, including coolant, transmission fluid, brake fluid, power steering fluid and so on. The tires will also need to be replaced and the brakes and suspension should be thoroughly checked.

    Very likely when the vehicle is operated, other problems may show up. Air conditioners are prone to leaks and the transmission and differential may need to be addressed. It would be best to prepare for a long and expensive project.

    [Back to top]
  62. Should a person ever consider buying a vehicle with 100,000 or more miles on it?

    High mileage vehicles can offer a substantial cost savings. Mileage is best considered in reference to the age and service reputation of the vehicle. For instance, a two year old Toyota with 100,000 miles would not scare me at all. The high mileage is almost certainly the result of long trips, which is excellent for the vehicle. A 12 year old vehicle with 100,000 miles is a totally different matter. The combination of years and miles would likely put this vehicle much closer to the end of its service life.

    Service reputation is the average life (without major repair) of a given make and model. Certain makes simply do not hold up as well as others. This is where a good relationship with a service shop is invaluable. A professional technician can advise you on the average service life of different vehicles you are considering.

    [Back to top]
  63. Should I consider a hybrid vehicle?

    The fuel cost savings on hybrids appear to be greatly exaggerated. The saving in fuel cost is very unlikely to offset the additional price asked. Combined with potentially extremely expensive repair cost, I feel hybrids are a very unwise investment.

    For even more information on hybrid vehicles, see our Detailed Topics article, Hybrid Hype.

    [Back to top]
  64. Should I consider an extended warranty when buying a vehicle?

    Extended warranties are notoriously bad investments. They are also one of the top profit centers in some dealerships. The salesperson and the dealership normally receive a hefty commission for selling these policies. Far better and much less expensive is a sound maintenance program. Maintenance prevents problems, rather than paying a large fee in advance to cover them. Here’s an article with much more detail.
    [Back to top]
  65. Should I consider buying the car at the end of the lease?

    Adding the lease payments to the price asked for the vehicle will render a total cost. This is normally much higher than if the vehicle had been purchased outright. This is a good reason not to enter a lease in the first place, but the lease payments are now gone. Buying a lease should be considered the same as buying any other used vehicle. If the price asked is right, at least you know how the vehicle has been cared for.

    For more information please see our Detailed Topic, Problems With Automobile Leasing.


    [Back to top]
  66. Should I consider purchasing a vehicle with a salvage title?

    Salvage on a vehicle title indicates the vehicle has sustained damage not economically feasible to repair. This is a huge red-flag and a warning of possible problems. The cost difference between it and a non-salvage vehicle may not be enough to cover the loss of resale in the future, and the risk assumed. I would advise against such a purchase.

    For more information on salvage vehicles, please read our detailed topic, Buying a Vehicle With a Salvage Title.


    [Back to top]
  67. Should I have all problems with my vehicle repaired before placing it for sale?

    This depends on the level of vehicle being sold. On late model and expensive vehicles, buyers tend to expect everything to be in first class shape. A needed repair can be a major deal-breaker on such a vehicle. On older, inexpensive vehicles this is less of a factor. Sometimes a buyer would prefer a better price to everything working perfectly. A low price may be more important than air conditioning.

    At least, all safety items must be in good repair and the vehicle should be as clean as possible. Remove all personal items, clean the interior and exterior. I also find honesty is the best policy. I advise having the vehicle checked by a qualified mechanic before listing it for sale. Fully disclose, in detail, any problems you know of and repair needed problems as above. This may help prevent unpleasant surprises and possible future legal action.

    [Back to top]
  68. There are a few minor problems with my vehicle. Should I fix them before trying to sell?

    A lot depends on the age and price of the vehicle. The newer and more expensive the vehicle, the more people will expect everything in working order. On older, inexpensive vehicles a buyer may be willing to accept minor problems. A vehicle with everything working does not always bring a top price, but it is always easier to sell.

    Another approach is to disclose fully the problems and discount the vehicle by the amount of the repair needed. This can work if the problems do not affect the safety of the vehicle. Most States have laws requiring the vehicle to be in a safe operable condition. Before listing the vehicle, have an inspection by a professional automotive technician. This may protect you as well as the buyer and may add value to the vehicle as well.

    [Back to top]
  69. To raise cash, I need to sell my late model vehicle and buy one for around $5,000. I need to get two years service to allow my finances to recover.

    Vehicles in your price range will need to be either several years old or will have high-mileage. Of the two choices, a later model with higher mileage is the better choice. Years are normally much harder on a vehicle than miles. High mileage on a later year model generally means a lot of highway type driving, also easier on a vehicle. Toyota and Honda products are generally very reliable, even with high mileage as long as maintenance has been kept up to date.
    [Back to top]
  70. What does Blue Book value of a vehicle mean?

    Blue Book was a brand name of the Kelly Company, who listed used cars with their values. This was often used by banks and loan companies, before online services, to determine the value of vehicles for financing. The name is sometimes improperly used to describe many car valuation services. Today there are several companies and web sites that provide used car valuation.
    [Back to top]
  71. What does the word salvage on a vehicle title indicate?

    Salvage on a vehicle title indicates the vehicle has sustained damage not economically feasible to repair. This is a huge red-flag and a warning of possible problems. The cost difference between it and a non-salvage vehicle may not be enough to cover the loss of resale in the future, and the risk assumed.

    For more information on salvage vehicles, please read our detailed topic, Buying a Vehicle With a Salvage Title.


    [Back to top]
  72. What is considered an antique or classic car?

    The word antique is very subjective. A generally accepted definition is something reminiscent of an earlier period and valued for its age. Clearly this is very non-specific. Under Louisiana law a vehicle twenty-five years old and in original condition is eligible for an antique vehicle license plate.

    The term classic may be even more subjective. Generally a classic is a vehicle design that routinely might command a price above what would otherwise be considered normal given the age and condition of the vehicle.

    [Back to top]
  73. What is my used car worth?

    There may be at least three answers. There is a dollar figure based on average resale price. This figure is available online, in books designed for the purpose and can be seen in local want ads. This number is used when trading in a vehicle or when borrowing money based on the vehicle value.

    There is also what the vehicle is worth to you. Sentimental value, cost of replacement and so on add into this figure. This amount is important when judging the overall cost of driving. The final value is what someone able to buy the vehicle is willing to pay. If selling the vehicle is the goal, this may be most important.

    For more information on deciding whether or not to repair a vehicle, please see our Detailed Topic, Should I Repair of Buy Another Vehicle.


    [Back to top]
  74. What is the difference in a title and a vehicle registration?

    The registration certificate establishes that the vehicle is properly registered. It normally comes with the license plate and is renewed when the plates are renewed. It must be kept in the vehicle and shown to law enforcement personnel when requested. The title proves ownership of the vehicle and should never be kept in the vehicle. The title is issued when the vehicle is sold and list the owner[s] and any lien holders. The title is only amended when ownership changes or a lien is satisfied and released.
    [Back to top]
  75. When buying a used vehicle is it better to look for an older low mileage or a newer vehicle with higher miles?

    Other factors being equal, years are harder on a vehicle than miles. For example, I would rather have a two year old vehicle with 50,000 miles than a six year old vehicle with 20,000.

    Vehicles are designed to be driven and higher miles often shows the vehicle was operated on the highway as opposed to in town. Highway miles are normally much easier on a vehicle than stop and go driving in town.

    Other quick checks include looking at the type of tires on the vehicle and the type of oil filter and battery. I find a vehicle with low grade tires, oil filter and battery has normally not been well maintained. In any case, never consider buying a vehicle with out having it checked by a profession, that you know you can trust. AGCO offers a very thorough pre-purchase inspections service.

    [Back to top]
  76. When is it time to consider buying another vehicle?

    If you like the vehicle and it meets your needs, I think cost of maintenance is the determining factor. Cost normally depends on the past maintenance the vehicle has received. On my vehicles, I track monthly repair cost. When repair cost average exceeds $200.00 per month, I feel it is time to change. For instance I may go three months with no repair and then spend $450.00. Since this averages $150 per month I feel okay.

    When faced with a large repair I have to consider the time it will last. For instance, if I need to spend $2000.00. Can I reasonably presume that if I spend this, I can drive ten months with no repair cost? If the answer is yes, it’s a fair investment. If the answer is no, I feel it is time to change.

    Our Buy or Keep Calculator may help you make just such a decision.

    For more information on deciding whether or not to repair a vehicle, please see our Detailed Topic, Should I Repair of Buy Another Vehicle.


    [Back to top]
  77. Which new car is the best from an investment standpoint?

    No new vehicle is good, from an investment position. Most lose 50 to 65 percent of their value in the first three years. Some are not as bad as others, depending on several factors. The major sellers, Toyota and Honda for instance are major sellers for a reason. A lot of people like them and continue to buy them. Vehicles that are not popular in a given area are usually represent more problems. For instance, Subaru is popular in the Northeast and West. In the South, there are few sources of parts or service. This may make them very problematic, if there is an unexpected breakdown.

    Companies that are financially weak or are divisions of companies that are financially in trouble can be a real problem. Should the company fail, warranties may end, parts will be far more problematic and resale value may evaporate?

    [Back to top]
  78. While under warranty, is it best to have maintenance performed by the dealership?

    I believe the opposite. A dealership may be less likely to inform you of things that can be addressed by warranty. Having a good independent shop keeping an eye on things may be in your best interest. An independent shop can help you in obtaining warranty work, by documenting problems. Your warranty is also preserved, when an independent shop performs your maintenance.

    See our Detailed Topic article Maintaining New Vehicles for more details.

    [Back to top]
  79. Why are the interest rates on a used vehicle higher than on a new one?

    Many finance companies and banks feel the risk of non-payment may be higher with a used vehicle and use this as a reason to charge additional interest. Higher rates should not automatically be accepted, as everything is negotiable. Careful shopping is in order as the rates may vary greatly depending on the institution and personal credit history.
    [Back to top]
Jump to:
View all categories
Printable view