How Many Miles On Your Good, Used Chariot?

For years now I’ve been helping you understand how to recession-proof your homes.  It seems almost daily that I’m showing folks that a major reason they’re struggling to get out of debt, save more and even pay for their kids college is …

… sitting in their driveway. You’re simply paying too much for your chariots.  

To win in the long-run, you can’t keep putting hundreds each month into things that go down like a rock in value.  In fact, the 1900 year old chariot recently found in Bulgaria is one of the few vehicles that have actually gone up in value over the years.  That, and a few other classic cars. 

Experts believe that 2009 will be one of the best years in recent memory to find a steal on a good used vehicle.  With that said, you just can’t go out willy-nilly and expect to get a great deal – and not a lemon – without doing some homework first.  In fact, nowadays high-tech digital odometers are making it easier for crooks to cheat unsuspecting used car buyers.  The scam is even easier to pull off than in the old days of mechanically turning back odometers.

Con artist sellers can easily obtain online services or software to reset digital odometers to the mileage of their choosing.  In 2002 a National Highway Transportation Safety Administration study estimated that over 450,000 were sold with tampered odometers.  With the flood of used cars entering the market, it’s highly likely that number will increase.  Dramatically.

So, what to do? Should you purchase only new cars?  Not! You’re certain to get ripped off since most new vehicles loose 40-50% of their value in the first four years, not to mention the sting of paying a national average $468 per month over 72 months.

Protect yourself before you buy.  Here's how:

• Take a close look.  Look for oil change stickers with mileage that may have been left on the vehicle.  Have your mechanic do a pre-inspection to ensure the vehicle's overall condition matches the odometer.  Deceptive sellers usually alter only the odometer; your braking, transmission, electronic systems. etc also have a story to tell.
  
• Get a maintenance history.  Ask for the seller's maintenance records.  Check with your local dealer for any work that may have been completed.  Their database will include records for ANY dealer nationwide, not just their own.
• Look for red herrings.  No, I don't mean a sniff test for fish.  Other signs that something might be amiss include less than 10,000 average miles per year driven, history reports with unknown mileage, leased vehicles, etc.
• Become a historian.  Pay a few bucks get ten VIN (Vehicle Identification Number) history reports from Carfax.com for $30 (if you're checking out multiple vehicles).  You can also get a free Odometer Check at www.carfax.com/odo.