So you need some wheels, but only have a a little scratch available. What do you buy? Banks won't loan you money for a new ride, but you don't want to buy a lemon. You need to pay cash. Tip number one. Buy the best car you can afford.
These days it is tough to find anything that runs for less than a grand. It use to be that a beater car could be had for a few hundred, but in days of valuable scrap metal most non runners will fetch $3-400 dollars or more. Since you are looking for a good deal is best to find the cheapest car that will require the least amount of money to make road worthy and to keep running.
1. Decide on a budget. This amount will not be the purchase price, but rather the total amount needed to buy the car, make any necessary repairs and maintenance, pay for registration, and also insurance. All of these are going to be upfront costs to owning a beater car. Remember it is not new.
2. Do some research. What cars fall into your price range? Which have good reliability records? Will it fit your needs? http://www.edmunds.com/ http://www.craigslist.org/ http://www.carsurvey.org/ http://www.ebay.com/ This sites provide feedback on the cars, pricing, and realistic comparable prices. Remember when reading reviews to take them with a grain of salt.
3. You picked out some cars. Time to kick the tires. If you are not prepared to inspect a car yourself find some help or take any prospects to an independent mechanic for an inspection. This is where you are going to have to decide to look for a car that is ready to go or one that may need some repairs. Usually the better condition the car is in up front the better off you will be. Cars that have been neglected and poorly maintain will in general be a problem in the future. Things to look for to pick out a good car. Body that is in good condition with minimal dings or dents. Paint that matches. Tires that match or at least two pairs. Remember that worn tires will be expensive to replace. Clean interior is a good sign that the previous owner took care of the car. Check the fluids. Dark or black oil indicates that it has not been changed recently. Automatic transmission fluid should be red and not smell burnt. Engine coolant is usually green or orange in some GM vehicles. If it looks like milk that is a sign of oil in the coolant or vice versa if you are checking the oil. Tires should be evenly worn. Uneven wear will indicate suspension or steering issues.
4. You found a nice car at a good price that you paid cash for. Make sure the owner has a clear title. No title=no deal. A good place to make a vehicle transfer is the tag office. As for payment. Cash in person after a clear title is produced. It is also a good idea to complete a bill of sale as a record for both the buyer and seller of a vehicle.
5. Insurance. Don't go driving without insurance. Most owners of beater cars just carry basic liability insurance to protect themselves in case of an accident. This will pay for the other driver's damages and for any injuries you may have, but not for damages to your precious beater. Comprehensive insurance covers "Acts of God" incidents and vandalism or theft. Collision coverage is for repairs or replacement of the vehicle in an at fault accident.
6. Registration. You got the clear title right? If not you bought a 3000lb lawn ornament. After you got your insurance it is time to go down to the tag office and transfer title into your name. This is the time your will pay any taxes owed on the sale of the vehicle and title transfer fees. You will get your license plate and in a few weeks the title in your name in the mail. Some states may require a vehicle inspection. If you bought the beater from a dealer this process is often completed for you by the dealership.
7. Repairs and maintenance. Remember back at the beginning. You saved money for those new tires and that oil change correct. Most used cars will need something. The good news is that parts for older cars are often much cheaper than new cars.
Future blog entries will focus on these areas in more detail and also more on specific cars that make good beaters.
Driving beaters can mean driving free.
http://www.daveramsey.com/article/drive-free/
Very informative post as I was thinking about getting such a kind of car.
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