About.com Used Cars

Deal or No Deal: 2004 Jeep Wrangler with Salvage Title

Sun, 22 Nov 2009 17:38:07 +0000

I'll let you in on a little secret. To find blog ideas, I use Google Alerts. So, when an alert came across for a 2004 Jeep Wrangler with Salvage Title for $1000 I was intrigued. It seemed like a good price for me - until I did a little digging. It has to be one of the biggest "No Deal" used cars I have ever stumbled upon.

Turns out the $1000 was only the current bid for this used Wrangler on eBay. The Wrangler has a "buy it now" price of $10,500. I practically spit out my Diet Coke because Edmunds.com says it's worth $8449 - and that's not factoring in the salvage title.

Of course the prospective seller spins an interesting tale (with the original grammar):

"Here is the only downfall it does have a salvage title tho this jeep has never been on a big collision. When i bought it all it had was the damage that you see on the last picture. i got this repaired and it looks like new again. There is not another single thing wrong with this jeep."

Here's why I love eBay when it comes to buying used cars: the free vehicle history from AutoCheck. This Jeep was bought by a dealer June 19, 2009. It was given a title on July 13, 2009 at 69,054 miles. Then it was involved in an accident on Aug. 7, 2009 and given a salvage title the same day in Oklahoma. On Aug. 11, 2009 it was reported as being at an auction and was titled on Sept. 23, 2009, which makes me believe it was sold on that date to the person now selling it on eBay.

It was titled at 70,049 miles and is being advertised as having 70,201 miles almost two months later as I write this on Nov. 22 where it's being sold in Texas after having been bought at an Oklahoma auction. Don't be fooled. No private seller has owned this car and driven it regularly in spite of the folksy narrative.

By the way, Oklahoma says a vehicle must be given a salvage title if it is in a collision and the cost to make it roadworthy is 60% or more of the vehicle's value at the time of the collision. That means this Wrangler suffered at least $5000 in damage, which is a lot more than indicated in the photo accompanying the ad. (I love the fact that the Wrangler is parked in front of what looks to be a church!)

I have complete info on both Texas Salvage Title laws and Oklahoma Salvage Title laws to give you some perspective on the issue.

This is a definite NO DEAL in the used car market. Make sure you always read the free vehicle history report now being offered with all eBay used car listings. It is going to save you a lot of heartache.

What do you think of this Deal or No Deal? Am I on the mark or did I get something wrong? Let me know by commenting below.

Deal or No Deal: 2004 Jeep Wrangler with Salvage Title originally appeared on About.com Used Cars on Sunday, November 22nd, 2009 at 17:38:07.

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Missouri AG Cracks Down on Unscrupulous Used Car Dealers

Sat, 21 Nov 2009 12:16:39 +0000

Here's a reminder to read your paperwork before signing for your used car purchase. Missouri Attorney General Chris Koster has cracked down on seven unscrupulous used car dealers in Missouri for violation of laws governing the sale of used vehicles, including violations that could compromise the safety of people purchasing the vehicles, according to a news release from his office.

According to Koster, his office investigated a number of used car dealerships around the state following consumer complaints. Violations uncovered from the investigation include:

Selling vehicles without required safety inspections.
Issuing temporary tags on vehicles sold with junk or salvage affidavits.
Requiring customers to sign affidavits stating the cars were not for immediate transportation, many times without the customers' knowledge that the affidavit was part of the purchase documents.

That last bullet item is the most important. Basically, the used car dealers were misrepresenting their products and customers were unwittingly going along. Read everything before signing on the dotted line. If any aspect of the transaction makes you uncomfortable, walk away. Don't let high-pressure sales tactics make you buy an unsafe used car.

Koster encourages consumers who have recently purchased vehicles from other dealerships without current, valid safety inspections, or without obtaining immediate valid titles, to contact the Attorney General's Office at www.ago.mo.gov or by calling the Consumer Protection Hotline at 1-800-392-8222.

Been the victim of unscrupulous used car dealers like these? Share your stories below in the comments section.

Missouri AG Cracks Down on Unscrupulous Used Car Dealers originally appeared on About.com Used Cars on Saturday, November 21st, 2009 at 12:16:39.

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Forbes '10 Clunkers to Avoid' - Do You Agree?

Sun, 15 Nov 2009 23:53:21 +0000

Hannah Elliot has written an interesting article at Forbes.Com called "10 Clunker Cars to Avoid." It's a well researched list, but I have some problems with it as I get into at the bottom of this post. By the way, I think the most important number is the Five Year Cost to Repair, which is why I highlighted it in italics.

According to the article, "To determine the worst clunkers on the road, we paired Vincentric's five-year repair-cost data for 2009 models with reliability ratings from Consumer Reports and based our results on the combination of those scores. The reliability ratings were based on 1.4 million vehicles owned or leased by CR subscribers and covered the model years 2000 to 2009. The higher the cost of repair, and the lower the reliability rating, the worse the vehicle. To break ties, we also looked at vehicles' overall rating from Consumer Reports, which evaluates reliability, owner satisfaction, accident avoidance, crash protection with side airbags, crash protection without side airbags and fuel efficiency."

The following is Forbes.com complete list of "10 Clunker Cars to Avoid":

Chevrolet Colorado
Reliability Rating: Over 100 percent worse than average
Overall Consumer Reports Rating: 41
Five-year Cost of Repairs: $798

Chrysler Sebring Convertible
Reliability Rating: Over 90 percent worse than average
Overall Consumer Reports Rating: 45
Five-year Cost of Repairs: $770

Chrysler Town & Country
Reliability Rating: Over 100 percent worse than average
Overall Consumer Reports Rating: 64
Five-year Cost of Repairs: $807

Dodge Grand Caravan
Reliability Rating: Over 100 percent worse than average
Overall Consumer Reports Rating: 60
Five-year Cost of Repairs: $807

Ford F-250
Reliability Rating: Over 100 percent worse than average
Overall Consumer Reports Rating: 37
Five-year Cost of Repairs: $969

GMC Canyon
Reliability Rating: Over 100 percent worse than average
Overall Consumer Reports Rating: 41
Five-year Cost of Repairs: $718

Jaguar XF
Reliability Rating: Over 100 percent worse than average
Overall Consumer Reports Rating: 72
Five-year Cost of Repairs: $1,301

Lincoln MKS
Reliability Rating: Over 80 percent worse than average
Overall Consumer Reports Rating: 73
Five-year Cost of Repairs: $869

Mercedes-Benz GL450
Reliability Rating: Over 100 percent worse than average
Overall Consumer Reports Rating: 77
Five-year Cost of Repairs: $1,501

Volkswagen Touareg
Reliability Rating: Over 100 percent worse than average
Overall Consumer Reports Rating: 66
Five-year Cost of Repairs: $907

What do you think of this list? Is Hannah on the mark? Some of the cars don't surprise, but others do. (Plus, the Town & Country and the Grand Caravan are basically the same vehicle, which means this is really the Top 9 Clunkers to Avoid.) Share your thoughts by commenting below.

Forbes '10 Clunkers to Avoid' - Do You Agree? originally appeared on About.com Used Cars on Sunday, November 15th, 2009 at 23:53:21.

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Used Car Stats Show It Continues To Be an Unstable Market

Wed, 11 Nov 2009 23:01:41 +0000

The recently released Kelley Blue Book Market Report for November 2009 has interesting info to convey about the used car market. Among the highlights:

Gas is going to rise to $3.05 a gallon by January 2010
Hybrid car values are down 10% [but I expect that number to be up quickly when gas spikes above $3].
Values for trucks are considerably higher than they were at this time last year with the most pronounced gains coming from full-size SUVs (26.8%), full-size trucks (21.0%) and full-size crossovers (16.1%).
More than half of car shoppers surveyed said they intend to keep their next vehicle for six years or longer. [That number is going to mean people keep their cars longer than their loans - bad for creditors and manufacturers, which means the automotive recession lives on.]
The shortage at auction has even led some dealers to scour eBay and Craigslist in order to supplement their used-vehicle inventory via private party listings. [Make sure you know who your buyers are so you get top price.]
Saturn continued its downward trajectory and suffered the largest shopper activity decline among the tracked brands, down 18 percent month-over-month. All Saturn vehicles contributed to this decline. [That's just sad. Saturn had such great potential until GM kicked it to the curb.]
Four of the top five appreciating used cars had S in their names: Jaguar S Type, Volvo S40, Volvo S80, and Audi S4. [Not sure what it means, but it has to have some significance.]

Used Car Stats Show It Continues To Be an Unstable Market originally appeared on About.com Used Cars on Wednesday, November 11th, 2009 at 23:01:41.

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Is This a Case of Salvage Title Fraud?

Sun, 08 Nov 2009 13:34:47 +0000

Came across an interesting question from a reader at AutoShopy.com (the sites I visit in pursuit of used car news!). Basically, the person had purchased a used car in August 2008, couldn't afford the payments, and tried to sell it to CarMax. CarMax checked the VIN and determined the car had a salvage title, which was news to the guy trying to sell it.

CarMax relies on AutoCheck.com for its verifications. So the buyer called AutoCheck.com and was told that the dealership bought the car from an auto auction, and the auto auction "announced" it as a salvaged title to the dealership; but neither the auto auction or the dealership reported the title to the DMV.

The reader ended his comments by saying, "So I don't know what to do...and I don't want to pay $15000 for a car that is only worth $2000. Am I entirely screwed? Does this happen a lot? Please, someone give me some advice!"

I'd like to hear from some of you. What do you think of this story? What should the buyer do? What should the buyer have done before buying the car? I'll share my thoughts after I hear from you.

Is This a Case of Salvage Title Fraud? originally appeared on About.com Used Cars on Sunday, November 8th, 2009 at 13:34:47.

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Honda Airbag Recall Expanded on Used Civics, Accords

Sat, 07 Nov 2009 10:49:36 +0000

It's not my intent to report every recall associated with used cars (because of the volume), but recalls about airbags are important. That's why I wanted to share information from an Automotive News article about the National Highway Transportation Safety Administration investigating Honda's handling of a recall for airbag problems in 2001 model year Accords and Civics.

According to Automotive News (subscription required), "The automaker's first recall, in November 2008, involved 3,940 Accords and Civics from the 2001 model year. The second recall, in June, involved more vehicles of the same models and year. Honda expanded the second recall in July to include certain 2002 Accords and Acuras. In all, the second recall totaled 440,000 vehicles. Honda has said the airbag inflator can rupture from too much internal air pressure, sending metal fragments through the airbag and hitting vehicle occupants. The company has acknowledged one death and multiple injuries from the defect."

I'm not here to task Honda for its handling of the recall. Rather, I want to remind folks buying a used Accord, Acura or Civic from 2001 to 2002 to make sure the car they're buying is not part of this recall. More information on recalls is available by going to the NHTSA recalls website. Make sure you do your homework before buying a used Honda from 2001 or 2002.

Have you ever bought a used car only to find out later it was subject to recall at the time of purchase?

Honda Airbag Recall Expanded on Used Civics, Accords originally appeared on About.com Used Cars on Saturday, November 7th, 2009 at 10:49:36.

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Used Car Prices Have Risen � But Appear To Be Leveling Off

Tue, 03 Nov 2009 10:32:55 +0000

At first glance, it appears alarming that used car prices have risen. According to Edmunds.com, three-year-old used cars currently sell for about 16 percent more than they did this time last year. Typically, used car prices rise 4.6 percent from year to year.

Seems like a big jump until you factor in that prices slumped a bit last year because of higher fuel prices. Some spike could be expected this year. However, this increase is still out of the ordinary. As Edmunds analyst Joe Spina explained in a news release: "The remarkable price increase is easily attributed to basic economic principles: used car supply is down, and demand is up. Why is supply down? In recent years, automakers largely withdrew from leasing and now the effects are starting to kick in, so off-lease inventory is starting to dry up. Also, thanks to relative softness in the new car market, there aren't as many used cars being traded in. Meanwhile, demand is up because many traditional new car shoppers are now considering used due to the economy."

There is some good news, though, if you have waited to purchase a used car. Prices should be stable. As Spina told AutoObserver.Com, "Barring any other atypical market forces or dramatic changes in gas prices, we expect that used car prices will be stable over the next few years - which is good news for consumers who plan to trade in soon."

Here is the breakdown by segment with the price increase in percent from Oct. 2008 to Oct. 2009:

Standard Compact:13.5%
Premium Compact: 1.3%
Midsize: -1.6%
Standard Sport: 4.7%
Premium Sport: 19.5%
Fullsize: 12.7%
Standard Luxury: 15.9%
Premium Luxury: 22.9%
Compact Pickup: 7.3%
Fullsize Pickup: 26.2%
Mini SUV: 7.8%
Midsize SUV: 25.4%
Fullsize SUV: 7.8%
Luxury SUV: 14.4%
Mini Van: 27.1%
Fullsize Van: 3.0%

Used Car Prices Have Risen � But Appear To Be Leveling Off originally appeared on About.com Used Cars on Tuesday, November 3rd, 2009 at 10:32:55.

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White House v. Edmunds: Your Cash 4 Clunkers Analysis Is Wrong!

Thu, 29 Oct 2009 20:21:29 +0000

Yesterday, Edmunds.Com reported that Cash for Clunkers wasn't the big deal everybody thought it was. So, the White House responded today: "Dear Edmunds, Your Cash for Clunkers analysis is wrong! Love, The White House." OK, maybe it wasn't quite that language but that's the gist.

Edmunds.Com reported that "Cash for Clunkers cost taxpayers $24,000 per vehicle sold. Nearly 690,000 vehicles were sold during the Cash for Clunkers program, officially known as CARS, but Edmunds.com analysts calculated that only 125,000 of the sales were incremental. The rest of the sales would have happened anyway, regardless of the existence of the program."

Well, that upset the White House. It responded on its blog: "Busy Covering Car Sales on Mars, Edmunds.com Gets It Wrong (Again) on Cash for Clunkers." The White House says, "This analysis ignores not only the price impacts that a program like Cash for Clunkers has on the rest of the vehicle market, but the reports from across the country that people were drawn into dealerships by the Cash for Clunkers program and ended up buying cars even though their old car was not eligible for the program."

Of course Edmunds fired back, but let me say this: both sides are right but Edmunds is probably a little more right, truth be told. I've found their analyses over the years to be right on mark.

Tell me what you think below. Who is right in this argument?

White House v. Edmunds: Your Cash 4 Clunkers Analysis Is Wrong! originally appeared on About.com Used Cars on Thursday, October 29th, 2009 at 20:21:29.

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Domestic Used Cars Don't Generate Excitement

Mon, 26 Oct 2009 07:22:31 +0000

Interesting little tidbit from AutoRemarketing.com, the used car industry's trade publication: A study from Virginia Commonwealth University suggests that the domestic automakers' slumping market share since 1996�has been caused primarily by a lack of new-product launches.

It all makes sense when you think about it. I've been covering the new car industry steadily since 2002 and the used car industry for about two years. People want to buy the hot thing - even if it's a used car three or four years old. As long as the car was hot when it first came out (and stayed so for at least a year), its used car sales are going to be strong.

Think back over the last five years. I'd say you could count on two hands the number of new cars and trucks introduced - and I mean really new and not refreshed - from the domestic manufacturers that have generated true excitement. Heck, I think I'm being generous at 10 - and the F150 pictured above is one of the 10.

Let me know what you think by commenting. Has the domestic market lost share over the last 13 years because it's not coming up with sufficiently exciting product?

Domestic Used Cars Don't Generate Excitement originally appeared on About.com Used Cars on Monday, October 26th, 2009 at 07:22:31.

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Demand for Used Cars High, But Buyers Are Fickle

Wed, 21 Oct 2009 07:14:47 +0000

Here's an interesting trend in used car sales uncovered by CNW Research in its monthly report on car buying: consumers are no longer buying just for the sake of buying. They're becoming more fickle in their purchasing habits, not because they can't afford the used cars, but because they're holding out for the right used cars.

The October report says, "Demand for used cars remains high, however. The number of consumers looking for a used vehicle has actually grown in the past year to 1.9 million (October '09) vs. 1.6 million (October '08). But finding a car or truck that consumers are willing to acquire is getting tougher precisely because inventories are thin. Among those looking for a one to five-year model, fewer than 28% have located a vehicle meeting their criteria (regardless of price segment) during the third quarter of this year. That compared to over 51% in the first quarter and 41% in the second quarter."

CW Research blames it on tight inventories, but it's more than that. Buyers have the money but they're not willing to settle as they may have in the past. Buying habits like that are going to drive more competition in pricing. Consumers should have the upper hand in the coming months even if inventories are tight.

Photo � Getty Images

Demand for Used Cars High, But Buyers Are Fickle originally appeared on About.com Used Cars on Wednesday, October 21st, 2009 at 07:14:47.

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