| Deprecation will save you money on a used car loan, | | | | warranty; > what percentage of the repair costs a |
| whether you buy from a dealer or a private party. | | | | dealer will pay under the warranty; > that spoken |
| But only one source is required to post a Buyers | | | | promises are difficult to enforce; > to get all |
| Guide. | | | | promises in writing; > to keep the Buyers Guide for |
| The average used car sold for about $13,900 last | | | | reference after the sale; |
| year; half of what a new car cost according to One | | | | Buying a Used Car from a Private PartyPrivate sales |
| reason for the sharp drop in used car pricing, as | | | | are not covered by the Used Car Rule and don't |
| Edmunds points out, is depreciation. | | | | require Buyers Guides. They are also not covered by |
| ". . . there is a steep decline in the car's value in just | | | | the implied warranties of state law. That means a |
| the first year of the car's life-from 20 to 30 percent. | | | | private sale is on an "as is" basis unless your written |
| In other words, that car that was worth $21,800 | | | | purchase agreement with the seller says otherwise. |
| when it was new can be purchased only a year later | | | | So be sure to have your own mechanic go over the |
| for as little as $15,260." | | | | car thoroughly. |
| Buying a Used Car from a DealerThe FTC Used Car | | | | Some used cars may be covered by a |
| Rule requires dealers to post a Buyers Guide on used | | | | manufacturer's warranty or a separately purchased |
| cars. (Buyers Guides do not have to be posted on | | | | service contract. However, warranties and service |
| motorcycles and most recreational vehicles.) The | | | | contracts may not be transferable, so be sure to |
| Buyers Guide must tell you: | | | | review the documentation before you buy. |
| > whether the vehicle is being sold "as is" or with a | | | | |