How to buy a used car the right way

One of the biggest issues I see financially for people is cars.  I have seen new  car loans of 6-7 years now that are $400-$500 a month.  Yikes how can you afford to do that even if you plan on driving it to the ground.  My personal rule is buying a car several years old and then driving it into ground.  I currently have a 2001 mini van that I purchased in 2005 and my husband vehicle is 2005 purchased in 2009.  

A big excuse I hear from people is that you are buying someone's else problems when you buy a used car. Not necessarily the case if you do your research! 

The Carfax

We have all seen the commercials with the little fox popping up between a salesman and the customer telling the dealer to show the carfax. Carfax is the leading database on automotive histories and provides the history of the vehicle including accident damage, number of owners, mileage markings at various stages, then a vehicle has been declared a total loss, as well as service and maintenance history. Most dealerships have access to Carfax and use it regularly themselves and give access to customers for FREE! . Request to see the Carfax report, as any retail seller will have it. If a dealer doesn't willingly supply you with the report you may want to look at another car or dealer. If you do your homework on- line before going to the dealer or you are purchasing from an individual that may not have a report for you, you can access it for about $30 by going to the website; all you need to do is have the Vehicle Identification Number (VIN).

Warranty History Report

Running a Warranty History Report is second nature to an authorized dealer. The report will list all repairs performed on a vehicle throughout the warranty period. It is best to buy a used car from the dealer that sells the same brand of new cars so if you are buying a used Chevy, try to buy it from a Chevrolet new car dealership. If you are buying a Chevy from a Toyota dealer -you can take the VIN from one dealer and walk into another. Ask the service department for a warranty history report which will show all the repairs the vehicle had under warranty.

Bring a Mechanic

It doesn't hurt to take your own mechanic with you when examining a used car. Have them in to look at the car, drive it, check under the hood and look underneath the carriage. A well trained mechanic can tell if the vehicle has been properly maintained or if it has been damaged in an accident, and they will tell you what you can expect in the way of repairs.

 Read All Paperwork

Whether the car you buy is new or used, there is a plethora of papers that have to be signed. There is no better time for a dealer to slip something past you, such as a disclosure that says "the dealer has made no representations regarding the history of this vehicle." If you followed the advice above, and got answers to your questions, the dealer did indeed make representations about the vehicle, and it would be foolish to sign or initial something saying he did not.

A big case of I want it!

This lady should have called Suze Orman show to do the segment Can I Afford it! She would be denied denied denied big time.

Instead she went out bought a 100k car on a disability check Yikes her monthly payment is more than 1/2 of her monthly $2500 disability check.


I don't think she is playing with a full deck-accept some personal responsibility on making a decision like that. Instead she is blaming the car dealership, they are not innocent either but you had a big case of the "I want it." You want a 100k car because of the status, the image it shows.

Driving a million miles

We only have 106k miles on our 1996 Dodge Caravan so I was completely in awe when I read about the Million Mile Truck

Frank Oresnik of Catawba made national news when his 1991 Silverado was about 1,200 miles short of the milestone. He reached it last Friday near Fond du Lac. Chevy’s public relations and advertising people filmed the occasion. He credits regular maintenance for the truck’s long life. It’s had about 300 oil changes between business trips.

I would have to say Frank's middle name is frugal! Most people would give up or need to trade-up. Many people who are Car rich cash poor could take a lesson on how Frank is spending his money.

Return on investment for hybrid cars

Hybrid cars are very popular these days. You turn on the TV and there are a lot of advertisements on them. They are better for the environment but do they really affect your pocketbook as gas increases. Edmunds did a recent report of the return on investment on some popular hybrid cars.


The 2007 Ford Escape Hybrid has the earliest break-even point. However, it still takes 2.9 years to save an Escape Hybrid's owner enough money to break even when compared to the cost of a four-cylinder 2007 Escape XLT

The Toyota Camry Hybrid takes 8.2 years to break even compared to the powerful six-cylinder Camry LE and 5.8 years with the loaded four-cylinder Camry XLE. The Lexus RX 400h takes a whopping 13.6 years to break even with the Lexus RX 350.

Check out Edmunds full list!

How to winterize your car

It is absolutely essential that you winterize your car each year to make sure you keep it in tip top shape to avoid any mechanical failure which maybe deadly. My husband makes sure both of cars have been winterize. He spent his Saturday doing this! Both cars went to the mechanic  for basic oil changes (I had coupons for $10 off each one so a total of $50 there) Here are some tips he said I could share with you :

1. Check antifreeze mixture Not just how much fluid is in the radiator, but the ratio of antifreeze/water content. A frozen radiator can cause your car to over heat and it can also crack your radiator and or damage the water pump. Always keep some extra anti-freeze in your car during the winter months.

2. Change the engine oil. Change your oil and oil filter as specified in your manual -- more often (every 3,000 miles or so) if your driving is mostly stop-and-go or consists of frequent short trips.

3. Inspect the belts and hoses. Cold temperatures can accelerate the demise of a belt or hose. Before winter starts, have the belts and hoses inspected on your vehicle.

4. Replace the windshield wiper blades Put windshield washer fluid in the windshield washer reservoir (plain water will freeze).

5. The battery Very cold temperatures can reduce a vehicle's battery power by up to 50 percent. If your vehicle battery is older than three years, have it tested at a certified automotive repair facility. Also, make sure the posts and connections are free of corrosion.

6. Tires Make sure the tires are in good condition. If you are not sure what this means, ask a mechanic for an opinion. Examine tires for remaining tread life, uneven wearing, and cupping; check the sidewalls for cuts and nicks. Check tire pressures once a month. Let the tires "cool down" before checking the pressure. Rotate as recommended. . Make sure there is air in the spare tire and that all the proper tire-changing equipment is in the trunk.

7. Ignition System Cold temperatures increase the demands of the ignitions system. Colder air requires more energy to fire the spark plugs. Weak ignition systems usually cause a flooded engine or kill the battery from extended cranking periods. Have your Tune up checked before the winter.

8. Fuel Put a bottle of fuel de-icer in your tank once a month to help keep moisture from freezing in the fuel line. Also a gas tank which is kept filled helps keep moisture from forming.

9. Lights - Inspect all lights and bulbs; replace burned out bulbs; periodically clean road grime from all lenses.

10. Emergency Kit Put together an emergency kit including blanket, extra boots and gloves, ice scraper, small snow shovel, flashlight and kitty litter (for traction when stuck in the snow). Also consider getting an emergency or prepaid cell phone if you don’t have one already. Some high energy snacks as well.

Why you shouldn't lease a car?

The thing that really helps us when evaluating purchases is that we now look at the price instead of the monthly cost. When we used to look at vehicles we would decide whether we could afford the payment. It's easy to look at a brand new car and think "Wow, I can easily afford $300 a month or$400 a month payment ".

Now we look at the price. A recent vehicle we looked at was about $300/month over 48 months plus a couple thousand down. Total cost after 48 months with the down payment was $14,000. At the end of the lease I would own nothing.

For us, looking at driving for4 years and then needing to buy or lease something else for $14,000 sounds ridiculous. I can buy a vehicle for $14,000 and after 4 years I still have a very good car that depending on the vehicle, is still worth several thousand dollars. Plus I can drive it for another 5-8 years.

Leasing is great for driving a car outside of your price range, but in the long run it will catch up with you. I strongly disagree with those who say it doesn't matter since you'll have a car payment for the rest of your life anyway.

AAA equals peace of mind

I have kind of a crazy week. Been sick with a stomach bug and this morning, I start my car to drive my oldest son to school. It doesn't start. I am in a bit of a panic and remember my AAA card in my wallet. I call them and within 30 minutes they are at my house jumping my car battery. It looks like one of the kids (or me) didn't shut the car door tight enough.

For peace of mind the $72 annually that my husband and I pay per year for AAA roadside assistance, it is well worth it. When I was 6 months pregnant and got a flat tire, or the time in college when I was driving a really junker, AAA was there for me! I know that there are cheaper roadside assistance out there like AT&T or through my insurance company, but I have never had to wait long.

Peace of mind is worth a couple of buck

How long do you drive your car?

Well according to CNN I should be driving my cars for 15 year or 225,000. We currently have 2 cars- one a 1996 Dodge caravan which we bought on Labor day weekend 1999. It currently have 103,000 miles on it. This is my husband going to work car. He drives about 20 miles a day on it. It is starting to show wear and tear on it after our 8 years of owning it. It has been paid off for 5 years now.

Will we get 4 more years out of it? Another 120,000 miles on it? I doubt it. I thought I was being good shooting for 9 or 10 years for owning the car.

Our second car, another mini-van 2001 Chrysler town and country. This is my car! We got it just over 2 years ago. It has 47,000 miles on it. Will it last another 9 years-maybe! I am sure going to try to baby it!!

Here are some of the tips:

have much hope of making it to 200,000 miles, a car has to be well maintained, of course. The magazine recommends several steps to help your car see it through.

• Follow the maintenance guide in your owner's manual and make needed repairs promptly.
• Use only the recommended types of fluids, including oil and transmission fluids.
• Check under the hood regularly. Listen for strange sounds, sniff for odd smells and look for fraying or bulges in pipes or belts. Also, get a vehicle service manual. They're available at most auto parts stores or your dealership.
• Clean the car carefully inside and out. This not only helps the car's appearance but can prevent premature rust. Vacuuming the inside also prevents premature carpet wear from sand and grit.
• Buy a safe, reliable car. Buying a car with the latest safety equipment makes it more likely you'll feel as safe in your aging car as a newer model.

The highest rated models include a Toyota and a Honda, which is no suprise. Our next car purchase will probably be a used Toyota or Honda and drive it forever.

I just saved a bunch on my auto insurance

I got my auto insurance bill and being in Massachusetts, you really can't do any comparison shopping with Geico or Progressive. Auto insurance are set by state regulators. The Division of Insurance sets a baseline rate for all companies. Good drivers get credit for clean records, but they also help pay for bad drivers. Massachusetts is ranked at the 4th most expensive state for auto insurance.

My insurance was down 11.7% thanks to a ruling change in April I will take any saving! I am saving about $180 since last year.

Car rich, cash poor

How much is your car loan? How long is it for? Many people on personal finance or getting out of debt message boards often talk about their high car loans when struggling to get out of debt. It is not common to see $400 monthly car payments. Like the old saying house rich, cash poor, they are car rich, cash poor.

According to The Real Reason your broke


"They may be spending 15% to 20% of their (take-home) pay on just the car payment," said Thompson, who supervises credit counseling for the nonprofit Family Foundations, "and that doesn't include insurance, gas, maintenance and all the other costs of owning a vehicle."

And sometimes there's more than one whopping payment. Sandra McGeary, a counselor at Consumer Credit Counseling Services of Western Pennsylvania, says she regularly sees middle-class families struggling with two payments in the $400 to $500 range. The burdens are so big that it doesn't take a major disaster, like a job loss, to send them over the edge.

"This fall they started coming in saying, 'We were doing so well. We don't know what happened,' " McGeary said. "I'll ask, 'Where did you cut back in your budget when gas prices went up?' and they'll usually say, 'What budget?' . . . A lot of times they don't know how much they can really afford, and they didn't cut back elsewhere" when their transportation expenses rose.

I like to think of my husband and myself as being financially responsibility regarding cars. We haven't purchased a brand new car since we have been married, we typically buy cars that are 2-3 years old. Currently we are driving a 1996 and 2001 one. In the next 18-24 months, we will be replacing the 1996 since it is has high mileage. I don't like to take a loan out with more than 36 months.

Dump the pump day

'Dump the Pump Day' delivers an environmental friendly alternative to driving. It also helps reduce our nation's dependency on oil and rising fuel costs, at least for one day.
People are encouraged to leave their vehicles at home Thursday and rely on public transit. By doing so, you'll join more than 34 million riders across the country who use public transit each weekday. American Public Transportation Association or (APTA) says 'Dump the Pump' will create a positive experience for drivers.

I wrote about this last year and my thoughts are about the same.


Public transporation in my area is crappy. I live about 25 miles outside of Boston. I can get the commuter train into Boston about 3 miles from my house, but it goes to Boston. I used to take that commuter train into Boston when I worked. My husband doesn't work in Boston so he drives to his work about 10 miles away. There are no buses around here either.

If you have the option to take public transportation to work, today might be a good day to take advantage of it.

In the meantime, here are some


Gas Saving Tips

Car repair wasn't a budget buster

I had to bring in my mini-van to be repaired because it didn't pass the annual inspection check. I was a little concerned that it might be a big repair and put a damper on our upcoming Disney trip.

Luckily, it was only a couple of hoses/belts that needed repair and it was $99.

This mini-van is 6 years old and only has 45k miles on it. I want it to last a long more time. Now that school is out, there isn't a lot of driving that needs to be done. As long as I keep up the every 3 months/3k oil change maintanence I hope to have the car for for atleast 5-7 more years.

It's my cariversary

Two years ago this week. I bought a new to use, but used Chysler Mini-van . I don't believe in buying brand new cars. It is just not a good financial decision long term. We still have 12 more months on the loan. While I am not crazy about debt, a car loan of $200 or so is reasonable in my opinion for 3 years.
During our car shopping experience we even heard about ballon loan for a car. Yikes!


I don't do a lot of driving me a work at home mom- mostly local. I have put on 15k miles in these past two years-only about 42k on it. It also go stolen for a joy ride, but luckily we found it in good condition back. It is a 2001 and I hope to have it atleast 7-8 more years on it.

Once this our mini-van is paid off early next year, we are hoping to replace our 1996 Dodge caravan that we have had since 1999. And it will be probably with a 3 year loan.

Ideas on how to save money on gas

I filled up my gas tank yesterday $55! I think $50 was my high around this time last year. I fill up once every 10 days or so. Today, May 1st offically starts the Summer driving season so I have been hearing all sort of things on the radio-one good hurricane in the gulf this year will have gas prices at $4.00 per gallon.

Remember before Katrina we thought $2.50 was a very expensive; now it is a bargain.

I have shared these before but they are still worthwhile
gas saving tips

Ideas on how to save money on gas

I filled up my gas tank yesterday $55! I think $50 was my high around this time last year. I fill up once every 10 days or so. Today, May 1st officially starts the Summer driving season so I have been hearing all sort of things on the radio-one good hurricane in the gulf this year will have gas prices at $4.00 per gallon.

Remember before Katrina we thought $2.50 was a very expensive; now it is a bargain.

I have shared these before but they are still worthwhile
gas saving tips

Gas Saving Tips!

With Gas pricing going up higher and higher... I heard 25 cents within a month. Yikes. Here are some tips from www.savingadvice.com
How HIGH will the gas prices go? $3? $4? Tell us what you think and you'll be entered to win in our monthly sweepstakes


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1. Shop around for a lower price, but don't go miles out of your way to get the best price. When traveling a long distance to save a few pennies, you end up spending more on car driving expenses (AAA estimates that it costs 51.7 cents a mile to drive a car in 2003 while the IRS allows a deduction of 36 cents a mile) than you end up saving with the lower gas price.

2. To find the least expensive gas in your local area, don't drive around looking. Hit the Internet. Sites like gasbuddy.com will let you find the lowest gas price without leaving your driveway.

3. It's best to purchase gas from a station that is busy. Gas that sits in tanks for long periods can get contaminated and lower its effectiveness. Fresh gas is less likely to be contaminated ensuring you get the most power for your dollar.

4. Avoid purchasing gas from a station that has just had a truck fill the station's underground tanks. Filling up the station tanks will stir up particles from the bottom of the tank which can clog your fuel filter and make your car run less efficiently.

5. Purchase your gasoline in the early morning or at night when it is cold outside. Gas becomes denser in cooler temperatures. Since gas pumps only measure the volume of fuel - not the density - you'll get better overall gas mileage for your money by purchasing fuel when it's cool outside rather than in the heat of the day.

6. Take the time to check your car's tire pressure each month (purchase a good-quality dial-type gauge for yourself -- pencil-style gauges and the ones mounted on the air hose are unreliable according to federal surveys). Under inflated tires reduce fuel efficiency by 2% for every pound they are under inflated. Under inflation also causes premature tire wear giving your tires a shorter use life.

7. Be sure to use your owner's manual for the correct tire pressure. The pressure printed on the sidewall of the tire indicates how much the tire will safely hold and should not be used since it has no connection to how much air should be in the tire for routine use.

8. Check your tire pressure when it is cool outside. A good time is in the morning after the car has rested overnight. Driving only a few miles to a gas station will build heat in the tire and can increase the pressure enough to give a false reading.

9. Drive at the speed limit. Cars use about 20% more fuel driving at 70 miles per hour than they do at 55 miles per hour.

10. Avoid driving fast in low gears. Driving at high speeds in the improper gear can reduce fuel efficiency by up to 40%.

11. Avoid using air conditioning whenever possible. Air conditioning reduces fuel economy by 10% to 20%.

12. Don't open windows when traveling at high speeds. Open windows on the highway can reduce fuel efficiency by 10%. It is much better to use the ventilation system.

13. Remove car racks and other items which make your car less aerodynamic when they're not being used. Leaving them on only makes your car less fuel efficient.

14. Use cruise control to maintain a steady pace on the highway to increase fuel economy.

15. Avoid rough roads. Driving on roads made of dirt or gravel can reduce fuel economy by up to 30%.

16 Don't let your car idle. Even on cold mornings, there's no need to let your car idle for more than 30 seconds. Newer cars are designed to be driven almost immediately and letting your car idle longer is a waste of gas.

17. It's more efficient to turn off your car and turn it on again than to let it idle for more than 45 seconds while waiting.

18. Remove all excess weight from your car. Many people use their car trunk as a storage space adding unneeded pounds to the car's weight. This unnecessary weight reduces the car's fuel efficiency.

19. Try to accelerate gently, brake gradually and avoid stops when driving. Gunning engines, quickly accelerating, and abrupt stops all waste fuel.

20. Try to avoid driving during rush hour periods when you know traffic will be stop and go. If you do find yourself in stop and go traffic, try to maintain a crawl.

21. When approaching hills or steep slopes, accelerate before the hill. Accelerating once on the slope will consume much more gas.

22. Service your car regularly while paying special attention to oil and filters. Blocked air flow from clogged air filters will increase fuel waste.

23. Check your car's alignment since this can cause engine drag which will also increase gas waste.

24. Periodically calculate your car's fuel efficiency. A loss in fuel efficiency is an indication of possible mechanical problems.

25. For most cars, higher octane gas is a waste of money. Regular unleaded(approx. 87 octane or so) is the least expensive and what you should purchase. It's important to remember that octane is a measurement of how hard it is to ignite the gas, not the quality of the gas. Purchase mid or high octane gas only if your engine pings, knocks or rattles when using regular unleaded fuel.

26. Don't purchase gasohol if possible. Some areas require gasahol (a mixture of gas and ethanol for your car. Ethonal is alcohol made from grain) because using it for fuel is considered a way to help farmers as well as help cut pollution. The problem is that ethanol contains only about two-thirds the energy of gasoline which means gasahol forces you to use more to go the same distance.

27. For short trips close to home, try walking or riding your bicycle. Not only will you save money on gas, you'll also get some healthy exercise.

28. When you go shopping or run errands, take a little time to plan and combine them all into one outing instead of several. In addition to saving gas, you will also save yourself time.

29. Car pooling or using mass transportation systems when possible is an excellent way to reduce your gas consumption. There is an added benefit that utilizing these methods to commute will likely result in a discount in your car insurance.

30. Refrain from "topping off" at the gas station. Gas pumps don't contain enough pressure to deliver gas well in short bursts meaning that you get short changed when you top your tank off.

31. After you have finished filling up, turn the gas pump nozzle around 180 degrees. This will drain about a half cup of gasoline into your tank which you would otherwise spill or give to the next customer.

32. Rotate your tires and periodically check them for uneven wear. Proper alignment saves both gas and tires.

33. Keep the outside of your car clean and waxed. Doing so will reduce drag and save gas mileage.

34. Keep your foot off the brake. Some people have a habit of resting their left foot lightly on the brake while driving. Not only will this will cause drag that will require you to use more gas than needed, you'll also wear out your brakes sooner.

35. The next time you are in the market for tires, consider purchasing radial tires instead of standard. They can cut your fuel bill (if kept properly inflated) by 2 - 3%.